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Bright outlook for soaring sector

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Hong Kong's hospitality sector is in good health despite the spectacular growth of rival attractions in Macau, the threat of competition from other cities in the region, and the fear that new developments on mainland China will prove a magnet for experienced hotel staff.

Last year, the city saw a record number of more than 28 million visitors, and all the signs point to continuing growth, more jobs, and the construction of new hotels to accommodate demand.

James Lu Shien-hwai, executive director of the Hong Kong Hotels Association, said there were several key reasons for the current mood of confidence.

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'We will have 3,000 to 4,000 new hotel rooms opening this year and next. This means that we will be looking for many new staff on top of existing vacancies. We estimate that in total more than 2,000 staff will be required.'

Mr Lu said the fact that the government had recently allocated 10 sites specifically for the development of new hotels was a sign of the underlying strength of the sector, spurred by the high average occupancy rate of the existing rooms.

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He said that instead of seeing Macau as a direct competitor, it should be regarded as a source of additional business.

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