Macau’s Hotel Sector Sees $1B Surplus Driven by Luxury Hotels

Macau’s hotel sector is making headlines with a remarkable financial recovery in 2023, achieving a gross profit of nearly MOP8.16 billion ($1.02 billion). This impressive turnaround is largely driven by the opulence of five-star hotels, which contributed almost MOP5.88 billion ($736 million), accounting for a substantial 72 percent of the sector’s total surplus.

In 2023, Macau’s luxury hospitality industry experienced a resurgence as pandemic restrictions eased, paving the way for increased visitor numbers. The success story of Macau’s hotel sector is not limited to the five-star establishments alone. Four-star hotels added a surplus of nearly MOP1.13 billion to the coffers, while three-star and two-star hotels contributed almost MOP1.06 billion and MOP95 million, respectively. The highest growth in receipts came from two-star hotels, with a surge of over 300 percent, followed closely by five-star and three-star hotels, each enjoying growth of approximately 150 percent. Four-star establishments also saw a significant year-on-year rise in receipts at nearly 70 percent.

The optimism surrounding Macau’s hotel sector is further buoyed by the expansion in the number of establishments, with a total of 145 hotels and budget accommodations. This figure marks an increase of 12 establishments compared to the previous year, showcasing the region’s renewed vitality and appeal. Notably, employment in the sector expanded by 27.8 percent to reach 45,704 workers, reflecting the robust recovery and growing demand.

Guest occupancy played a pivotal role in this resurgence, with total receipts for the sector soaring by 136.4 percent year-on-year to a staggering MOP37.93 billion ($4.75 billion). While the sector reveled in its financial successes, expenditures also rose, reaching nearly MOP29.84 billion ($3.74 billion), an increase of 41.1 percent from the previous year. This spending included MOP14.2 billion ($1.78 billion) in operating costs, MOP12.14 billion ($1.52 billion) in employee compensation, and MOP3.41 billion ($427 million) allocated for goods purchases and commissions—an area that saw a remarkable 125.2 percent increase.

The remarkable recovery of Macau’s hotel sector is underscored by its transition from a deficit in 2022 to a surplus in 2023, driven by the elimination of pandemic-related restrictions. The vibrant gaming hub also witnessed a rise in the number of budget accommodations, reaching 43 establishments, which saw their receipts increase by 301.6 percent. Although expenditures in this segment rose by 108.1 percent, a gross surplus of MOP24 million ($3 million) was achieved, affirming the resilience and growth potential across various tiers of the hospitality industry.

This revitalization of Macau’s hotel sector not only cements its reputation as a luxury destination but also signals promising prospects for sustained growth in the region’s tourism and hospitality landscape.