The government is currently studying the opening and expansion plans of six budget establishments, located throughout Taipa, and the northern and central districts of Macau. Together, these will provide 462 rooms for budget travellers. Analysts agree this is a much overdue addition to the low cost segment.
At the moment, the government is reviewing applications for five establishments and has already granted approval to one guesthouse with seven rooms in the central district. “Among the applicants, there is an opening scheme for a guesthouse (with seven rooms) in the central district. Macau Government Tourism Office (MGTO) approved it last September and the applicant has been informed about the approval”, says a note sent to Business Daily.
According to MGTO, a hotel falls into the category of budget accommodation if it is a 2-3-star guesthouse or a 2-star hotel. Without revealing details about the budget establishments and the proposed dates of opening, the note from MGTO adds that according to current regulations an applicant must apply for scrutiny within 18 months if the applicant’s opening scheme is approved. If the establishment passes muster, MGTO will then issue a licence to the establishment but “MGTO will not disclose details at this stage since [proposals] involves private investments.”
In March, it was reported that property developer Agência Predial Song Chai Chuen had plans to build a 2-star, low-cost hotel in Patane. The Chinese language Macau Daily News quoted company executive director Tong Ut Song as saying the hotel would have about 200 rooms. The project has been studied by the government since 2012 and has not yet received approval.
The referrals
The government says that there are currently 46 budget accommodation establishments in Macau, which together provide 1,500 rooms. Yet, renowned travel websites mention only four to five establishments.
Ubiquitous international travel guide publisher Lonely Planet, for instance, introduces the budget offering category in Macau on its website with the following: “The vast majority of new hotels in Macau are aimed at the moneyed rather than budget travellers, so you have to look hard for good budget sleeping options. But for those with the cash, there are world-class choices.” It refers to three venues.
The first referral by Lonely Planet is the first overseas project of Singapore’s 5footway.inn chain on Rua de Constantino Brito in front of Ponte 16 casino resort. The website says room prices start from USD28 per night [MOP223.64] and considers it a boutique hotel.
Robert Cai, manager of 5footway.inn, in Macau, says they opened last October. “We’re a boutique hotel and hostel chain in Singapore; we have four properties in Singapore, and Macau is our latest addition”, he explains. The mission of the chain is to maintain heritage buildings and refurbish them, whilst retaining local flavour. It all started because the owner of the former Pensão Ruby decided to replace the old hotel with a new one, associating efforts with the chain 5footway.inn.
Quite well known in Singapore, Mr Cai says most of the visitors staying at the hotel in Macau already know the brand. “In Singapore, we have more than 500 beds”, he says.
In the territory, 5footway.inn offers 24 rooms, each able to accommodate on average two to three people. He says prices range from HKD700 to HKD1,300, depending on weekdays or weekends, and the type of room.
Since October until now, 5footway.inn Macau has hosted visitors from Europe, US, Malaysia and Hong Kong, with only 20 percent checking in from Mainland China. Many guests are families and young tourists but some are businessmen who usually book online one or two months beforehand. “We also have quite a lot of walk-ins.”
Even though he recognises that they are not so economical in terms of price, he says they include breakfast with their offering providing more than most accommodation in Macau. “Even 2-star hotels don’t include breakfast”, he says.
The second reference from Lonely Planet website is the Towns Well Hotel, a 2-star hotel located in the centre of downtown Macau, in Calçada das Verdades. According to Lonely Planet, room prices start at USD33 per night [Mop 263.57] and include services like free Wi-Fi in the public area, restaurant and 24-hour housekeeping services.
General manager Daniel Cheong says Towns Well Hotel opened in November 2011 to cater to the needs of another type of visitor, as the existing offer was “old and small . . . We observe that more and more high-end hotels are appearing in the Macau hotel industry and that recently the market is lacking the supply of 2 to 3-star hotel rooms for those budget travellers.” He says the price per room ranges from MOP600 to MOP800 during weekdays.
Guests coming to the territory are from many different places, such as Japan, Korea, Philippines, China, Europe, US and Indonesia. Some are backpackers, others are businessmen and some are families. With an occupancy rate during the normal season of around 80 percent – and more than 90 percent for peak seasons – he expects to open more budget hotels in the coming years.
Another hotel referred by Lonely Planet is the Ole Tai Sam Un Hotel. Located in the centre of Macau on Rua da Caldeira, near Rua da Felicidade and Avenida de Almeida Ribeiro, prices per night start from USD54 [MOP 431.30] and you may choose between a king bedroom, twin-bed room or deluxe room.
Other websites, like JustBookHotels or Brazilianhostelworld.com refer to Fu Hua Guang Dong Hotel, located on Rua Francisco Xavier Pereira, a 3-star hotel with room prices starting at USD47.95 [MOP 382.98].
On the Macau Budget Hotels Site, created by the Macau Hoteliers and Innkeepers Association with the help of MGTO in November 2012, there is information about 46 budget accommodation premises, with prices ranging from about MOP100 to MOP400.
Long overdue
Amy So Siu Ian, associate professor at the University of Macau, says there are a few 2 to 3-star hotels and guesthouses in Macau that fit the low cost accommodation category and that can be considered quality rooms. Yet, she believes some of the existing offering is in “need of renovation” in order to be more competitive. Overall, she says Macau needs more quality budget accommodation that can be considered safe and clean, in order to meet current demand.
Even though Macau’s current tourism offering does not target mostly budget travellers, Ms So says “It’s still good for Macau to have budget accommodation in order to diversify our segments”. Considering the number of tourists entering Macau every year, she believes that there is room for even more than the six budget accommodation businesses currently being reviewed by the government. Overall, she expects a bigger offering in budget accommodation will bring a different type of visitor to the territory, like family travellers and Western tourists.
Glenn McCartney, assistant professor in Gaming and Hospitality Management at the University of Macau, believes that the government should cater to low budget-type accommodation, instead of just focusing on the luxury offering. Moreover, he says the general perception regarding what a budget offering is, is currently mistaken. “People think low cost means cutting corners in safety and health but that’s not necessarily the case”, he explains.
Budget accommodation does not necessarily attract only budget travellers. “Some people travelling for leisure or business don’t need full service hotels, they just need a bed to sleep in”, he says. In fact, some people just prefer to give spend their money differently, and not simply invest in a luxury hotel. “A hotel is just a facility I might stay in: somewhere I sleep, and then I can start spending.”
Around the world, there are very high quality budget organisations. “Low cost hotels around the world are part of big international hotel conglomerates that operate 5-star hotels but also offer budget accommodation, and not necessarily with diminished quality”, he says.
He says that in certain cases for an accommodation to be considered affordable they can cut costs on things like check-in services. “I’ve been in hotels where there are self check-in terminals. Some people don’t need seven employees at a check-in counter.”
So, overall, he believes Macau needs to increase its accommodation portfolio if it really wants to diversify the type of tourist visiting the territory. By diversifying the type of visitor he clarifies that it does not necessarily mean budget travellers but people who may want to spend their money differently. Besides, by increasing the product portfolio, Macau also becomes more competitive with regard to other regional destinations.
More low-cost hotels checking in
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