Macau's hotel industry rebounds with $1 billion profit in 2023

Macau's hotel industry returned to profit in 2023, rebounding to MOP$8.18 billion ($1.02 billion) from a loss in 2022. The figure reflects a 300% year-on-year increase in gross value added (GVA) to MOP$20.35 billion ($2.53 billion).

According to Macau’s Statistics and Census Service (DSEC), profit was driven by a 140% year-on-year increase in revenue to MOP$37.93 billion ($4.72 billion). This major jump was the result of a significant increase in the number of guests and a rebound in the occupancy rate of the hotels.

Broke down by segment, the revenue split included room revenue of MOP$18.37 billion ($2.28 billion), food and beverage service revenue of MOP$8.14 billion ($1.01 billion), and rental venue revenue of MOP$8.07 billion ($1 billion). The segments were up by 240%, 180%, and 40% year-on-year respectively.

Meanwhile, expenses increased by 41% year-on-year to MOP$29.75 billion ($3.69 billion). This included operating expenses of MOP$14.2 billion ($1.77 billion), staff expenses of MOP$12.14 billion ($1.51 billion), and purchases and commissions of MOP$3.41 billion.

The DSEC also offered insights on performance by hotel class. The revenue of 4-star hotels increased by nearly 70% year-on-year in 2023, while the revenue of 5-star and 3-star hotels more than doubled, and the revenue of 2-star hotels more than tripled.

The report also shows that all of the star-rated hotel sectors recorded profits, with 5-star, 4-star, 3-star, and 2-star hotels making profits of MOP$5.88 billion ($730 million), MOP$1.13 billion ($140 million), MOP$1.06 billion ($130 million) and MOP$100 million ($12.43 million) respectively.

The number of people employed in the local hotel sector also jumped by almost 28% over 2022 to reach more than 45,700 as a result of the rebound in tourism. In its statistical snapshot of the hotel sector in 2023, the DSEC also found that there were a total of 145 hotel establishments operating in the territory, a rise of 12 from the previous year.