Fri, Apr 07, 2023 page10

• Thousands of Macau hotel rooms shut in labor crunch

  SERVICE SECTOR WOES: A shortage of migrant labor is causing room rate hikes along with a drop in service quality, as casino operators deal with a US$1.6bn loss

  • Bloomberg
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  Macau casinos have been forced to remove thousands of hotel rooms from booking systems and cut back on guest services such as housekeeping, as a labor shortage leaves the gambling hub struggling to cater to a surge of tourists from China.

  Some five-star hotels in Macau’s casinos only have fewer than half of their rooms available for booking, people familiar with the situation said.

  Another operator has about 20 percent of its rooms out of commission, Macau Responsible Gaming Association president Billy Song (宋偉傑) said.

  

  People visit shops inside the Venetian Macao hotel in Macau on Jan. 24.

  Photo: Reuters

  The lack of service staff is so severe that some hotels have reduced the frequency of maid services, who clean rooms only after customers check out, he said.

  While casino operators hope their hotels can reach near capacity by the summer, Macau’s slow hiring process for foreign workers is a major hurdle to fully reopening now that COVID-19 border curbs and restrictions have ended, Song said.

  “We didn’t expect the reopening would come so fast, so everybody’s struck unprepared,” Song said in an interview.

  “After three dismal years, we all want to make the best out of this year, but now that customers have come, we don’t have enough capacity to receive them,” he said.

  Capturing an initial wave of tourists is crucial for Macau’s recovery after ceding its crown as the world’s largest gambling hub to Las Vegas during the COVID-19 pandemic as China shuttered its borders.

  The labor shortage is triggering room-rate inflation and a drop in the quality of hospitality, both of which could deter visitors.

  It could also further strain casino operators, which saw a combined loss of US$1.6 billion during the pandemic. A crackdown on high-rollers and their agents has already scuppered Macau’s VIP industry, which contributed half of the city’s gambling revenue before COVID-19.

  Casinos are also facing tighter government control after an overhaul of local gaming laws gave authorities increased oversight of their operations, including overall performance and major financial decisions.

  Most Macau casino jobs — including dealers, floor managers and accountants — are reserved for locals.

  The most urgent workforce needs are service staff such as waiters, cleaners and receptionists at hotels and restaurants, Song said.

  Those jobs were largely shunned by locals and filled by foreign workers before the pandemic — many of them from mainland China and Southeast Asia, he said.

  More than 44,000 non-local employees have left Macau since early 2020, leaving a gaping hole in the workforce as China’s end of its “zero COVID” policy has fueled a travel boom not seen since 2019.

  The gaming hub relies on the mainland and Hong Kong for more than 90 percent of its visitors.

  At the same time, hotel prices are quickly rising. In February, Macau’s average hotel room price was about US$150 — already 80 percent of its pre-COVID level — while visitation was only 45 percent of what it was in 2019, Macau Government Tourism Office data showed.
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