Macau, China, May 7, 2025 (Lusa) - The head of one of Macau's six casino operators warned on Wednesday that a shortage of hotel rooms could threaten the city's international competitiveness as a tourist destination.
Galaxy Entertainment Group chairman Francis Lui Yiu Tung said, "the issue of hotel rooms must also be addressed" as Macau's casinos focus on hosting events and middle-class gamblers.
In 2019, high rollers accounted for 46.2% of Macau's total casino revenue. However, in the first three months of this year, this segment, known as VIP gaming, accounted for only 25.1%.
High rollers were affected by the arrest of the head of the world's largest VIP gambling company in November 2021.
Alvin Chau Cheok Wa, former chief executive of Suncity, was sentenced in January 2023 to 18 years in prison in a case that saw the number of gaming licences issued in Macau fall from 85 to 18.
The world's gambling capital, with revenues twice those of Las Vegas, Macau is the only place in China where casino gambling is legal.
Francis Lui recalled Las Vegas received 42.5 million visitors in 2019, before the pandemic, and has "more than 155,000 hotel rooms".
"This is more than three times higher than Macau," lamented the businessman, despite the city receiving more than 34.9 million tourists last year.
The number of hotel rooms in the semi-autonomous Chinese region has also declined.
According to official data, Macau's hotels and guesthouses had 44,000 rooms at the end of March 2025, 5.8% less than in the same month last year.
As a result, the number of hotel guests fell by 5.4% in the first quarter of 2025, and around 59% of visitors arrived on organised tours and spent less than a day in the city.
"Demand for accommodation will continue to outstrip supply in the coming years," warned Francis Lui.
"If we fail to address the issue of accommodation supply adequately, Macau's competitiveness (...), not only at the regional but also at the global level, could be undermined," warned the businessman.
Francis Lui acknowledged that the shortage of available land in Macau is a challenge and pointed to “greater integration” with the neighbouring special economic zone of Hengqin (Mountain Island) as a possible solution.
On the other hand, the operator said that the six concessionaires should "unite to protect Macau's leading position, not by competing on prices, but on the quality of the customer experience".
According to data from the Macau Hotel Association, representing 47 local establishments, average room prices fell 9.7% year-on-year to 1,287 patacas (142 euros) in March.
Francis Lui spoke during the launch of Global Gaming Expo Asia, the largest gaming industry event in Macau, which runs until Friday.
VQ/ADB // ADB.
Lusa
