Given the size and grandeur of the hotels along the Cotai Strip and the amount of people heading there for entertainment, it is hard to remember that developments slowed down during the financial crisis from 2009 to 2010. However things are picking up again.
According to the government’s Macau Economic Services, the city’s real GDP growth rate in 2010 was 26.2 per cent, a significant increase from the 1.5 per cent recorded in 2009. Another sign is the opening of Sheraton Macao Hotel in the third quarter of 2011, which will add 4,000 more rooms to the area. Sheraton Macao Hotel will be joined by two other properties in the same complex and, in time, the entire Cotai Strip will have 12,000 rooms available, which will make it attractive to association groups in need of large numbers of available rooms.
Good demand
The supply does not seem excessive when you consider the demand. “If you draw a five-hour flight radius around Las Vegas, you get around 360 million potential customers,” says Josef Dolp, managing director of Sheraton Macau Hotel. “If you draw the same radius around Macau, you get 2.3 billion potential customers that come from China, India, Southeast Asia and more.”
Bruno Simões, executive director of Smallworld Experience, a local events management company, thinks the need is there as well. “The rates remain the same, it hasn’t dropped, which is a good indication of the demand,” he says.
As the Cotai Strip pie is already big enough for everyone to be a winner, the main focus should be making sure the area continues to attract MICE groups. The challenge over the next few years will be for Macau to retain sustainable growth. To do so, it has to be a destination where there is something for everyone, whether they are a delegate or family member.
Entertainment options
Popular stage shows such as Cirque du Soleil’s Zaia and The House of Dancing Water currently provide additional entertainment, while the new shopping and entertainment complex Macao Studio City is reportedly planning to resume construction in 2012, for a 2015 opening. Galaxy Macau has the Banyan Tree Spa to offer a different hotel experience from the rest of the properties, and the complex also has the world’s largest wave pool.
Sustainable growth requires support though. “The main question will be how Cotai Strip and the Macau government can further develop the transportation, infrastructure and facilities,” says Josef. A spokesperson from a Hong Kong-based events company would like to see improvements in Macau’s accessibility. “It is critical for Macau’s success that their airport increases the number of direct flights, which will then make the destination more appealing to big companies with a strong management team, as senior managers will not travel on the same flight for safety reasons,” she says.
Flight changes
The Macau Civil Aviation Authority (AACM) recently announced expansion plans for the Macau International Airport that will double its current size. The plans are split over three phases that commence in 2015 and end in 2039. AACM says passenger traffic will increase to 5.6 million in the first phase of the expansion and seven million in the second phase, which will be in 2020.
The government set-up a Committee for the Development of Conventions and Exhibitions in March 2010, to formulate strategies and policies that will help grow the MICE industry in Macau.
With appropriate developments that have a more long-term view, Macau can be a destination that truly has world-class entertainment for everybody.