Skift Take
Macau is an example of an emerging meetings destination that will see U.S. market growth on the backs of its U.S. hotel partners like Sheraton and St. Regis, but the challenges are significant due to the region's reputation as the "Las Vegas of the East."
Starwood Hotels made a big bet on Macau with the launch of the 4,000-room Sheraton Macau, Cotai Central in 2012, which it’s following up in December with the opening of the 400-room St. Regis Macau, Cotai Central.
The Sheraton Macau, the largest hotel in Starwood’s inventory, will likely be repositioned under the new upscale Sheraton Grand brand by the beginning of the new year. The St. Regis will be the largest in its brand's portfolio.
The two hotels are part of the enormous Sands Cotai Central resort community owned by Las Vegas Sands Corporation. Along with a 600-room Conrad hotel and 1,400-room Holiday Inn onsite, the entire integrated facility offers almost 6,500 guest rooms at multiple price tiers.
Corinne Janssen, director of association sales for the two Starwood Macau properties, told us the destination is undergoing a similar push as Las Vegas to expand its meetings infrastructure and visitor economy beyond gaming. Part of that is due to rapidly dwindling interest in gambling globally. Casino receipts fell 2.6% in Macau in 2014. For the first six months of 2015, Macau's casinos pulled in 37% less year-over-year.
There’s also added pressure on Macau to diversify its economy due to the Chinese government’s crackdown on corruption and money laundering that began in early 2014, which is also causing revenue losses. That additional scrutiny is scaring away some of the high rollers flying into Macau, who overall are responsible for about two-thirds of the Chinese protectorate's casino e
