The opening ceremony of the Macau Government Tourist Office (MGTO) Annual Marketing Meeting was held today (June 23) at the Macau Tower Convention and Entertainment Center. Director of MGTO, João Manuel Costa Antunes presented the tourism development of Macau and outlined future marketing strategies to trade, media, guests and MGTO's representatives around the world.

Speaking at the Marketing Meeting, Antunes pointed out that world tourism is facing the global financial crisis and pandemic threat of H1N1, and Macau's tourism industry is no exception to the impact. According to provisional data, visitor arrivals to Macau exceeded 8.9 million during the first five months of the year, a drop of 10% compared with the same period in 2008. International visitors totaled 1.1 million, a decrease of 12%. International arrivals had recorded an upward trend since the year 2003.

The top ten visitor generating markets for the first five months are Mainland China, Hong Kong SAR, Taiwan, China, Japan, Malaysia, Thailand, the Philippines, Singapore, South Korea and USA, among which, Hong Kong SAR, Japan and Thailand recorded positive growths of 1.3%, 8.7% and 14.9% respectively.

From January to April, same-day visitor arrivals amounted to 53.4% and overnight stay visitors totaled 46.6%. Overnight guests in hotels for the first four months exceeded 2.2 million, an increase of 2.8% and represent 64.9% of the total overnight stay visitors. The average length of stay was 1.39 nights. Three to five-star hotels have scored a 75% average occupancy rate with an average room rate of MOP$982.8 in the first four months. There are a total of 90 accommodation premises with 19,266 rooms.

Due to the global financial turmoil and H1N1 pandemic, the tourism industry of Macau inevitably faces certain impact and total visitor expenditure dropped by 13.8% to MOP$29.4 billion (US$3.6 billion) for the first quarter.

The per-capita spending of Mainland visitors, meanwhile, has jumped 15% to MOP$3,948 (US$493.5), while that of Taiwan, China and Oceania visitors have increased by 13.5% and 14.5% respectively. Nevertheless, it is essential to point out that the overall average per capita spending was MOP$1,638 (US$204.8), a drop of 5.3%.

According to the World Tourism Organization (UNWTO), international tourist arrivals declined at a rate of 8 percent between January and February this year, and the Pacific Asia Travel Association (PATA) reported a decrease of 7% in international visitor arrivals to Northeast Asia for the first quarter. As the H1N1 pandemic has aroused concern on travel, arrivals from Asia to Macau have also dropped.

The cross-strait charter flights and the new "Regulations on Travel Agencies" implemented in the Mainland have also imposed impact on Macau's tourism industry. The cross-strait charter flights weaken the role of Macau as a transit station between Taiwan and the Mainland. The "Regulations on Travel Agencies", by strictly prohibiting travel agencies quoting prices below cost, will help build up an image of a quality destination for Macau in the long run despite decreasing the number of tour groups in the short term.

Apart from external challenges, the tourism industry of Macau is also facing the complications of illegal accommodation. The issue has affected the image of Macau as a destination and the interests of the travel trade and visitors. The SAR government has established a cross-department task force to crack down on illegal accommodation.

To prevent the issues from developing into a crisis, MGTO is working closely with trade partners and market representatives to turn the challenges into opportunities, including the recently implemented "Plan to Support the Macau Tourism Industry". The "Celebrate Macau Tours", which aim to stimulate inbound group traffic from target markets, have received positive responses. In the past month, 1,414 groups have joined the program, with 32,232 participants involving an amount of over MOP$1.1 million (US$139,268).

MGTO also joined hands with Macau Tourist Guide Association to launch the World Heritage "Historic Centre of Macau" Free Guiding Service at two major world heritage sites in Macau. Professional tour guides are stationed at the Ruins of St Paul's and Senado Square to offer free guiding services to individual visitors. Over 3,800 visitors have enjoyed this free guiding service in a month.

The Macau Business Tourism Center has introduced the "Strategic MICE Market Stimulation Program" to assist business tourism partners. The stimulation program includes three categories: Meetings and Conventions, Exhibitions and Incentives. For the aviation industry, MGTO offers promotion budget support to local carriers, new routes to Macau and 14 airlines now flying to Macau via the Board of Airlines Representatives.

The Supplement VI to the Mainland and Macau Closer Economic Partnership Arrangement (CEPA) signed earlier this year allows Mainland residents visiting Taiwan to enter Macau in transit, which will facilitate the travel trade to develop multi-destination tour products.

Though encountering challenges, Macau is abound with opportunities brought by the newly opened City of Dreams and upcoming MaloClinicSPA, Macau Science Center and the L'Arc New World Hotel Macau, which will add new impetus to the tourism industry and attract more visitors to Macau.

MGTO capitalized on the Annual Marketing Meeting to discuss with its representatives around the world about strategies and tactics for this time of adversity. Five representatives were also awarded recognition plaques for over ten years of dedication and service at the opening ceremony.

Following the opening ceremony, a mini mart was held for the local tourism trade to meet with representatives of MGTO to discuss business opportunities to bring in more visitors.