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Macao's Aviation Strategy and Partnership Approach

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Macao's Aviation Strategy and Partnership Approach Macao's aviation strategy and partnership approach Lam Hin San, Kevin Macao SAR, China 31 March 2008 Macao SAR, China Total Area: 28.6 km 2 Macao Peninsula: 9.3 km2 Taipa Island: 6.5 km2 CoTai Area: 5.2 km2 Coloane Island: 7.6 km2 Population: 531,400 GDP: 2006 USD $12.5 billion 2007 USD $18.3 billion 2 1 Location Guangzhou Macao SAR Located at the Pearl River Delta of the southeastern Pearl coast of Mainland China River Shenzhen Delta Zhuhai Hong Kong Macao 3 Visitor Arrivals 1993-2007 30,000,000 27,003,370 25,000,000 21,998,122 20,000,000 18,711,187 72,556 6 16, 15,000,000 11,530,84111,887,876 10,278,973 10,000,000 9,162,212 7,829,311 8,151,055 7,833,754 7,752,495 7,443,924 7,000,370 6,948,535 5,000,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2006: 21,998,122 ( 17.6%) 2007: 27,003,370 ( 22.8%) Source: Statistics & Census Service 2 2007 27,003,370 (+22.8%) 12,945,206 14,058,164 (+17.5%) (+19.5%) 47.9% 52.1% Overnight Stay Visitors Day trip Visitors 2006 2007 Overnight visitors 4,680,854 5,739,734 % change (+13.6%) (+22.62%) Av. Length of Stay (night) 1.21 1.36 Difference (-0.01) (+0.15) Source: Statistics & Census Service Top 10 Tourist Generating Markets 2007 1. Mainland China 14,873,490 (+24.1%) 2. Hong Kong 8,176,964 (+17.8%) 3. Taiwan, China 1,444,342 (+0.5%) 4. Malaysia 402,121 (+98.3%) 5. Japan 299,406 (+36.0%) 6. Philippines 256,192 (+45.4%) 7. Korea (ROK) 225,417 (+38.5%) 8. USA 202,165 (+38.0%) 9. Singapore 189,666 (+50.2%) 10. Thailand 140,749 (+57.4%) Source: Statistics & Census Service 3 Total Visitor Expenditure : 2006 2007 Jan-Sep Total Visitor Expenditure MOP$ 74.7 billion MOP$ 72.9 billion Growth Rate (%) (+20.4) (+38.5) Gaming Expense MOP$ 56.2 billion MOP$ 57.4 billion Growth Rate (%) (+21.3) (+45.7) Other Expense MOP$ 18.5 billion MOP$ 15.5 billion Growth Rate (%) (+17.6) (+17.2) Source: Statistics & Census Service New hotel projects forecast and current hotel expansion projects (Guest House is included) No. of hotels at present: 54 No. of rooms: 16,734 Estimated time required for No. of hotels No. of rooms projects to complete Expansion 5 1,193 1 – 2 years New Hotels 26 19,775 3 – 5 years 34 12,517 6 – 10 years 10 8,197 Total : 75 41,682 as of 31 Jan 2008. Source: Macao Government Tourism Office 4 Conferences and Meetings (MICE) 2006 (Jan - Sept) 38,129 2007 (Jan - Sept) 48,960 Source: Statistics & Census Service Macau International Airport • Runway: 3360 m • Apron: 24 parkings • Pax terminal bldg. Capacity: 6 mil pax • Cargo terminal Capacity: 320,000 tonnes • Number of scheduled airlines: 15 (6 LCCS) 5 Macau International Airport traffic statistics passengers cargo movements 2006 4,976,093 220,572 51,049 2007 5,498,879 180,935 53,386 Growth 10% -18% 4.6% Rate Source: Macau International Airport S.W.O.T. ANALYSIS • Strengths – Attraction of the gaming industry with world brand hotels and resorts for tourism and MICE business. – Unique cultural and UNESCO World heritage. – Authentic cuisines. – Visa free for most countries. – Inputs from Government to create more tourist attractions and event all year round. 6 • Weakness – Image of Macao still being a gambling center. – Rising hotel room rate. – Insufficient mega shopping malls. – Lack of expertise in handling MICE business. – Poor professional support from Macao Tour operators, e.g. languages barriers. – Land transportation not convenient. – Airport getting congested. 7 • Opportunities – More direct flights by airlines. – Develop MICE market. – Increasing consumer spending. – Impressive development on shopping, theme parks attracting young travelers and families. – New tourism and economic developments in Southern China, more FITs. • Threats – Drop off of service standards with rapid expansion of tourism industry. – Increase competition in gaming markets like Malaysia, Philippines, Singapore, Korea, etc. – Direct cross strait flights. 8 Strategies The Aviation Industry and the Government Departments are cooperating on the followings: • Adopt open sky policy and encourage new airlines and new routes. • Perfect land, sea and air transportation systems. • Consolidate, sustain, boost and venture various markets. • Strengthen the business tourism and public tourism facilities Open Sky Policy and encourage new airlines and routes • Fifth Freedom traffic rights to almost all 45 ASAs with other States. • Be flexible and active in reviewing the terms in ASAs regularly, mainly in traffic rights, number of seats, frequencies and number of operators, etc. • Review regularly the airport charges and incentive programs as well as encourage new routes. 9 Perfect land, sea and air transportation systems • Airport terminal building, apron and car park expansions. • Airport ferry terminal with heliport and express links. • Light rails. Consolidate, sustain, boost and venture various markets The Tourism Authority will: consolidate the major source market, sustain growth momentum of SEA market, boost mid and long haul markets like U.S. and Europe, Venture forthcoming markets such as Middle East, Russia, India and Indonesia. 10 Strengthen the business tourism and public tourism facilities • Establish the Macao Business Tourism Centre. • Encourage cooperations between airlines and Mega Resorts, e.g. free shuttle bus service, meals to passengers, etc. Example • The explorations of the Malaysia Market in 2005. We have made together the followings: – Cooperative advertisements on both destinations, e. g. travel fairs, roadshows, etc. – Joint promotion for inaugural flights. – Invite the airline to actively participate in various destination promotions. – Provide efficient services and convenient land connections as well as incentives. 11 Thank You 12.
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