Macau's hotel occupancy expected at 85% during summer holiday
Macau’s tourism industry is experiencing a significant post-COVID resurgence, with a surge in visitor arrivals and hotel occupancy expected to peak this summer. According to the Hotel and Tourism Industry Association, hotel occupancy is projected to reach 85–90 percent during peak periods, especially in August.
As of July 8, Macau welcomed over 20 million visitors, according to the Public Security Police Force—a figure reached 26 days earlier than in 2024. This early achievement is largely due to new, more flexible visa policies from mainland China, which now make it easier for travelers to enter the region. Mainland Chinese tourists make up 71.6 percent of all arrivals, followed by Hong Kong (19.1 percent), Taiwan (2.4 percent), and other international markets (6.9 percent), according to official data.
Hotel sector strengthens despite fewer guests
Between January and May 2025, hotel occupancy rates rose 5 percentage points year-on-year, reaching a near-record 89.2 percent. The average stay length remains at 1.7 nights. However, the total number of hotel guests dropped slightly by 2.1 percent to 6 million. Macau’s current success is attributed to a blend of travel convenience, cultural festivals, family-friendly attractions, and pent-up demand.
Cheung Kin Chung, president of the Macau Hoteliers & Innkeepers Association, reportedly told TDM that the first half of 2025 showed positive momentum and that this trend is likely to continue throughout the year. He said, “With more balanced supply-demand dynamics, hotels are better positioned to maximize occupancy without compromising service quality.”
However, he also noted that external economic pressures and rising competition from nearby destinations like Singapore and Hainan pose ongoing challenges. Cheung added, “The industry must continue strengthening internal capabilities as well as expand customer sources.”
Strategic focus: long-haul markets and tourism diversification
For the upcoming summer season, the industry is focusing on internal capability-building and broadening customer sources, particularly from long-haul international markets. There’s a growing push for family-oriented and educational tourism products, aiming to attract multi-generational travelers.
Macau is also advancing its “tourism plus” strategy—integrating tourism with sectors such as culture, sports, and gastronomy to create richer, more diverse visitor experiences.
Gaming revenues remain strong
The tourism boom is paralleled by strong gaming tax revenues. As of H1 2025, Macau’s fiscal revenue from gaming rose by 1 percent year-on-year. The city collected nearly MOP45.26 billion (approx. $5.6 billion) in gaming-related taxes, according to data from the Financial Services Bureau.
In June alone, Macau collected MOP8.16 billion in gaming taxes—up 12.2 percent from May. Gaming taxes accounted for 86.5 percent of the government’s total MOP52.34 billion revenue in the first half of 2025. June’s impressive performance was driven by promotional campaigns and junket operator adjustments under tighter regulatory controls.
Recently, the Macau government revised its 2025 income forecast from the 35-percent “special gaming tax” on GGR, lowering it by 5 percent. This adjustment was detailed in an opinion document released by a Legislative Assembly subcommittee. The updated projection now anticipates MOP79.8 billion in direct gaming tax revenue this year, down from the earlier forecast of MOP84.0 billion. The Legislative Assembly approved the amendment to the 2025 fiscal budget on 9 July.
