November 26, 2012 business daily | 5
MACAU
Number of tourists drops as prices they pay climb Visitor arrivals have fallen for six months in row, and the decline is blamed on higher prices Tiago Azevedo
tiago.azevedo@macaubusinessdaily.com
T
he number of visitor arrivals in October dropped by 1.2 percent year-on-year to 2.35 million. Even the National Day Golden Week holidays did not interrupt the downward trend, arrivals declining in October for the sixth consecutive month, according to data released on Friday by the Statistics and Census Service. Visitors from mainland China fell by 1.4 percent year-on-year in October, the steepest decline since May, when the number declined by 4.2 percent. The number of tourists from Taiwan dropped by more than 10 percent. The number of visitors from Taiwan in the first 10 months of this year was slightly above 900,000, 13.1 percent fewer than in the equivalent period last year. While direct flights between Macau and India appear set to be introduced, the number of Indian visitors fell in October. Fewer than 12,500 Indian tourists entered Macau last month, 11.5 percent fewer than a year before. In the first 10 months the number of Indian visitors fell by 11.2 percent, having grown in each of the two preceding years. Macau had 23.2 million tourists altogether in the first 10 months of this year, 0.8 percent more than in the equivalent period last year. Macau’s numbers sharply contrast sharply with Hong Kong’s. The number of visitors there in the first nine months increased by 16.3
percent year-on-year to reach 35.37 million, according to data from the Hong Kong Tourism Board. The mainland was the source of 25.33 million or 71.6 percent of them, 24.2 percent more than a year before.
Getting costlier The president of the Macau Travel Industry Council, Andy Wu Keng Kuong, said: “The main reason behind this six-month losing streak is that while consumption spending in Macau is high – some may even surpass Hong Kong – the quality of the services and products provided here cannot catch up.” More people used to come here during the mainland holiday season, and patterns are changing. “Many tourists nowadays are smart consumers and know how to make a choice,” Mr Wu told Business Daily. The decrease in the number of mainland tourists in October may be explained by the National Day Golden Week holiday. “As mainland Chinese have more holidays in October due to the National Day, many opted to visit places further away than Macau,” Mr Wu said. He said the number of mainland visitors in the first 10 months had still been higher than a year before. More than 13.9 million mainland visitors came here in the first 10 months, 5.2 percent more than a year before. A drop in the number of Hong
KEY POINTS October arrivals down by 1.2 percent Arrivals up by 0.8 percent in first 10 months Average length of stay 1.0 day More attractive brand needed as city gets costlier
Kong visitors is hampering the tourism industry. “The number of arrivals from Hong Kong has suffered several double-digit monthly drops this year,” said Mr Wu. “This makes a difference between the tourist numbers in Macau and Hong Kong, as Hongkongers account for about one-fourth of Macau’s tourist market.” Almost 6 million visitors from Hong Kong came here in the first 10 months, 6.3 percent fewer than a year before.
Lack of value Mr Wu said that as Macau got pricier, Hongkongers were visiting less frequently. Higher prices for entertainment
and restaurant meals contributed to a 3.36 percent rise in the tourist price index in the third quarter of this year. Visitors are also spending more on hotel rooms. Tourist spending, excluding gambling expenses, amounted to 13.3 billion patacas (US$1.7 billion) in the third quarter, 10 percent more than a year before, official data show. Short stays are still the norm. The average length of stay was 1.0 day in October, 0.1 day more than a year before. This has led to criticism of João Manuel Costa Antunes, the outgoing director of the Macau Government Tourist Office. Mr Costa Antunes is to leave next month after more than 24 years in the job. Critics say the city needs to build a more attractive brand to encourage visitors to stay longer. “These declines serve as signals to the industry and the government for reflection,” said Mr Wu. “The industry should improve the quality of services they provide while the administration should find out ways to support the industry, particularly in human resources,” he said. “The shortage of workers has an impact on the quality of the service.” The coordinator of the faculty of international tourism and management of the City University of Macau, Gao Yan, said the city ought to enhance its value-added offerings to tourists to encourage them to stay longer. “Value-added travel in Macau has been developed only at the surface level. People come here to shop, eat and buy souvenirs,” she told Business Daily last week. With Tony Lai
3.36% Tourist price inflation in Q3