Macau Hotel Industry Rebounds with US$1 Billion Profit in 2023

Macau’s hotel industry has experienced a remarkable turnaround, posting a profit of MOP$8.18 billion (US$1.02 billion) in 2023, according to the Statistics and Census Service (DSEC). This is a significant recovery from previous losses and is attributed to a substantial 140% increase in revenue, which rose to MOP$37.93 billion (US$4.72 billion).

The boost in revenue was driven by a surge in guest numbers and an increase in hotel occupancy rates, according to a report by IAG that cited data from the DSEC. Revenue streams showed impressive growth across various sectors. Room revenue reached MOP$18.37 billion (US$2.28 billion), up 240% from the previous year. Food and beverage services generated MOP$8.14 billion (US$1.01 billion), a 180% increase, while rental venue revenue grew by 40% to MOP$8.07 billion (US$1 billion).

Expenses also rose, climbing 41% year-on-year to MOP$29.75 billion (US$3.69 billion). This increase included operating expenses of MOP$14.2 billion (US$1.77 billion), staff expenses of MOP$12.14 billion (US$1.51 billion), and purchases and commissions totaling MOP$3.41 billion.

Breaking down performance by hotel class, 5-star and 3-star hotels saw their revenues more than double, while 2-star hotels saw a revenue increase of more than three times. Four-star hotels experienced a nearly 70% rise in revenue. All categories reported profits, with 5-star hotels earning MOP$5.88 billion (US$730 million), 4-star hotels MOP$1.13 billion (US$140 million), 3-star hotels MOP$1.06 billion (US$130 million), and 2-star hotels MOP$100 million (US$12.43 million).

The overall gross value added (GVA) by the hotel sector surged by 300% year-on-year, reaching MOP$20.35 billion (US$2.53 billion). This dramatic increase underscores the sector’s vital role in Macau’s economic recovery and growth.

Read related article: Macau Hotel Occupancy Surges in 1Q24, Reports DSEC