2013 MACAU HOTEL PROFITS DOUBLE

2014/10/22

From：Macau Business

Hotels in the territory saw operating profits shoot up, with bigger contributions to the local economy

The Macau hospitality sector posted a nearly 52 percent increase in its operating profits last year, with revenue outpacing the growth of the hotels’ expenses on operations and staffing costs, official data shows.
According to a survey released by the Statistics and Census Service yesterday, of the 67 hotels and 33 guesthouses operating in 2013, the sector posted a record operating profit of 3.76 billion patacas (US$479.7 million), up 51.6 percent from 2012.
With more guests staying overnight and increased guest rooms in service last year, the hospitality sector’s revenue increased by 15 percent year-on-year to 25.3 billion patacas, of which 11.94 billion patacas was generated by room sales.
Of the 11.94 billion patacas from room sales, income generated by the 28 5-star hotels operating in the period occupied nearly 80 percent, official data noted.
By the end of last year, there were 27,764 rooms in hotels and guesthouses operating, a figure that increased by 6.5 percent over a year before, another set of data from the census service shows. While the official data notes that the hospitality sector saw more than 10.6 million people staying overnight last year, 11.8 percent more than 2012, the average room rate here rose 4.06 percent to 1,476 patacas for last year, according to the Macau Hotel Association.
Alongside the increased accommodation revenue, the sector saw significant growth in sales of food and beverages (5.58 billion patacas, up 14 percent) and rental of space for events (4.71 billion patacas, up 23 percent).
The 2013 revenue registered for the sector grew faster than overall expenses, which increased by 10 percent year-on-year to 21.54 billion patacas.
Most of that money went on operating expenses – mainly incurred from contractual services such as management, cleaning and laundry service, marketing and power usage – and increased by 15 percent to 10.33 billion patacas.
Salaries and employee benefits cost hotel operators 8.18 billion patacas, 4.7 percent higher than in 2012.
Last year, some 39,909 people were engaged in the hospitality sector, only about 1 percent more than the previous year.
The sector’s contribution to the Macau economy for last year increased 17 percent year-on-year to 12.15 billion patacas, a faster growth pace than the 11 percent increase seen for 2012 at 10.34 billion patacas.
The absence of new hotel construction last year, however, also meant that investment tumbled 73 percent year-on-year to 2.26 billion patacas.

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