Report: Hong Kong, Macao Hotel Sectors Growing Quickly

Latest research by Jones Lang LaSalle Hotels shows that Hong Kong five-star hotels remain the rate leaders in Asia.

Chee Hok Yean, executive vice president of Jones Lang LaSalle Hotels in Asia explained the reasons for the company's optimism. "On a macro level, Hong Kong's tourism and hotel industries are well supported by the SAR's position as one of Asia's premier business and financial centres, international airline hub and gateway to the Pan-Pearl River Delta region. International arrivals, which reached a record high in 2006, are projected to increase further, providing a growing demand base from both leisure and corporate travellers," said Chee.

In anticipation of the growth in tourist arrivals the Hong Kong Tourism Board is rolling out its tourism master plan which will reshape the city's tourism landscape. The hotel industry too, is responding with more innovative product concepts from boutique hotels to affordable hotels for the value-conscious traveller. Collectively, these developments will increase the depth and breadth of the Hong Kong tourism and hotel industries.

Hong Kong's hotel sector sterling performance in 2006 is evidence that the city is doing something right. Despite the total net addition of around 8,000 rooms and strong double-digit growth in room rates over the past two years, hotels in Hong Kong have consistently achieved high average occupancy levels in excess of 80% in 2005 and 2006.

In the meantime the broader tourism and hotel market is benefiting from the wave of Chinese tourists landing on Hong Kong's shores. Mainland China was the city's top source market in 2006 and will remain an important market for Hong Kong, boosted by further extensions of the Individual Visit Scheme to more cities in Mainland China.

Like Hong Kong, international arrivals to Macao are projected to increase further. According to the report's research, there are approximately 37,600 new hotel rooms under construction in Macao or being planned from 2007 onwards. If all of these projects materialize, Macao's room inventory will triple the present stock. Over the next three years, tourists to Macao will be spoilt for choice; international-standard hotels that will enter the Macao market include the Venetian Macao, Shangri-La, Traders Hotel, Four Seasons Hotel, Sheraton, St. Regis, Hilton, Conrad, InterContinental, Holiday Inn, Sofitel, Mandarin Oriental, Marriott and Ritz Carlton.