Mass-market room rates in Macau were up about 70 percent during the Lunar New Year holiday, driven by budget-conscious mainland Chinese traffic, the Hong Kong Economic Journal reported Monday.
Demand for budget accommodation soared during the four-day weekend, with room rates rising to 760 patacas (HK$760) on the third day of the new year from 460 patacas on an average day.
Room rates topped 1,000 patacas in many budget hotels, the report said.
Buoyant demand for cheaper accommodation made up for a slack in the high-end market that is hurting from China’s unrelenting campaign against corruption and extravagance.
Overall occupancy was about 90 percent on the second day of the new year, the report said, citing Andy Wu, president of the Travel Industry Council of Macau.
Jim Murren, chief executive and chairman of MGM China Holdings Ltd. (02282.HK), parent of MGM Resorts International, earlier told CNBC the outlook for the gaming industry will continue to be uncertain this year, although the mass market has long-term potential.
Gaming revenue has fallen by an average of 14 percent in the past eight months.
Translation by Vey Wong
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