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Macao's aviation strategy and Macao's aviation strategy and

partnership approachpartnership approach

Lam Hin San, KevinLam Hin San, KevinMacao SAR, ChinaMacao SAR, China

31 March 200831 March 2008

Macao SAR, China

Population: 531,400

GDP: 2006 USD $12.5 billion

2007 USD $18.3 billion

Total Area: 28.6 km2

Macao Peninsula: 9.3 km2

Taipa Island: 6.5 km2

CoTai Area: 5.2 km2

Coloane Island: 7.6 km2

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Location

Macao

Pearl

River

Delta

Shenzhen

Hong KongZhuhai

Guangzhou

Macao SAR

Located at the Pearl River

Delta of the southeastern

coast of Mainland China

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Visitor Arrivals 1993-2007

7,82

9,31

1

7,83

3,75

4

7,75

2,49

5

8,15

1,05

5

7,00

0,37

0

6,94

8,53

5

7,44

3,92

4

9,16

2,21

2

10,278

,973

11,530

,841

11,887

,876

16,672

,556

18,711

,187

21,998

,122

27,003,370

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

�� 2006: 21,998,122 (2006: 21,998,122 (�������� 17.6%) 17.6%)

�� 2007: 27,003,370 (2007: 27,003,370 (�������� 22.8%)22.8%)

Source: Statistics & Census Service

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12,945,20612,945,20612,945,20612,945,206

(+17.5%)(+17.5%)(+17.5%)(+17.5%)

14,058,16414,058,16414,058,16414,058,164

(+19.5%)(+19.5%)(+19.5%)(+19.5%)

1.36

(+0.15)

(+22.62%)

5,739,734

2007

1.21

(-0.01)

Av. Length of Stay (night)

Difference

(+13.6%)% change

4,680,854Overnight visitors

2006

Overnight Stay Visitors Day trip Visitors

2007

27,003,370 (+22.8%)

47.9% 52.1%

Source: Statistics & Census Service

Top 10 Tourist Generating Markets

14,873,490 (+24.1%)

8,176,964 (+17.8%)

1,444,342 (+0.5%)

402,121 (+98.3%)

299,406 (+36.0%)

256,192 (+45.4%)

225,417 (+38.5%)

202,165 (+38.0%)

189,666 (+50.2%)

140,749 (+57.4%)

1. Mainland China

2. Hong Kong

3. Taiwan, China

4. Malaysia

5. Japan

6. Philippines

7. Korea (ROK)

8. USA

9. Singapore

10. Thailand

2007

Source: Statistics & Census Service

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MOP$ 18.5 billion

(+17.6)

MOP$ 56.2 billion

(+21.3)

(+20.4)

MOP$ 74.7 billion

2006

(+38.5)Growth Rate (%)

MOP$ 72.9 billionTotal Visitor Expenditure

MOP$ 57.4 billion

(+45.7)

Gaming Expense

Growth Rate (%)

MOP$ 15.5 billion

(+17.2)

Other Expense

Growth Rate (%)

2007 Jan-Sep

Total Visitor Expenditure :

Source: Statistics & Census ServiceSource: Statistics & Census ServiceSource: Statistics & Census ServiceSource: Statistics & Census Service

New hotel projects forecast and current hotel expansion projects

(Guest House is included)

as of 31 Jan 2008. Source: Macao Government Tourism Office

41,682

8,197

12,517

19,775

1,193

No. of rooms

5Expansion

75

106 – 10 years

Total :

343 – 5 years

26New Hotels

1 – 2 years

No. of hotelsEstimated time required for

projects to complete

No. of hotels at present: 54 No. of rooms: 16,734

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Conferences and Meetings

(MICE)

48,9602007 (Jan - Sept)

38,1292006 (Jan - Sept)

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)

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Macau International Airport

traffic statistics

4.6%-18%10%Growth

Rate

53,386180,9355,498,8792007

51,049220,5724,976,0932006

movementscargopassengers

Source: Macau International Airport

S.W.O.T. ANALYSISS.W.O.T. ANALYSIS

•• Strengths Strengths

–– Attraction of the gaming industry with world brand Attraction of the gaming industry with world brand

hotels and resorts for tourism and MICE business.hotels and resorts for tourism and MICE business.

–– Unique cultural and UNESCO World heritage.Unique cultural and UNESCO World heritage.

–– Authentic cuisines.Authentic cuisines.

–– Visa free for most countries.Visa free for most countries.

–– Inputs from Government to create more tourist Inputs from Government to create more tourist

attractions and event all year round.attractions and event all year round.

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•• WeaknessWeakness

–– Image of Macao still being a gambling center.Image of Macao still being a gambling center.

–– Rising hotel room rate.Rising hotel room rate.

–– Insufficient mega shopping malls.Insufficient mega shopping malls.

–– Lack of expertise in handling MICE business.Lack of expertise in handling MICE business.

–– Poor professional support from Macao Tour Poor professional support from Macao Tour

operators, e.g. languages barriers.operators, e.g. languages barriers.

–– Land transportation not convenient.Land transportation not convenient.

–– Airport getting congested.Airport getting congested.

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•• OpportunitiesOpportunities

–– More direct flights by airlines.More direct flights by airlines.

–– Develop MICE market.Develop MICE market.

–– Increasing consumer spending.Increasing consumer spending.

–– Impressive development on shopping, theme parks Impressive development on shopping, theme parks

attracting young travelers and families.attracting young travelers and families.

–– New tourism and economic developments in New tourism and economic developments in

Southern China, more FITs.Southern China, more FITs.

•• ThreatsThreats

–– Drop off of service standards with rapid expansion Drop off of service standards with rapid expansion

of tourism industry.of tourism industry.

–– Increase competition in gaming markets like Increase competition in gaming markets like

Malaysia, Philippines, Singapore, Korea, etc.Malaysia, Philippines, Singapore, Korea, etc.

–– Direct cross strait flights.Direct cross strait flights.

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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 Open Sky Policy and encourage new

airlines and routesairlines and routes

•• Fifth Freedom traffic rights to almost all 45 Fifth Freedom traffic rights to almost all 45 ASAs with other States.ASAs with other States.

•• Be flexible and active in reviewing the terms Be flexible and active in reviewing the terms in ASAs regularly, mainly in traffic rights, in ASAs regularly, mainly in traffic rights, number of seats, frequencies and number of number of seats, frequencies and number of operators, etc.operators, etc.

•• Review regularly the airport charges and Review regularly the airport charges and incentive programs as well as encourage new incentive programs as well as encourage new routes.routes.

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Perfect land, sea and air transportation systemsPerfect land, sea and air transportation systems

•• Airport terminal building, apron and car park Airport terminal building, apron and car park

expansions. expansions.

•• Airport ferry terminal with heliport and Airport ferry terminal with heliport and

express links. express links.

•• Light rails.Light rails.

Consolidate, sustain, boost and venture Consolidate, sustain, boost and venture

various marketsvarious markets

The Tourism Authority will:The Tourism Authority will:

consolidate the major source market,consolidate the major source market,

sustain growth momentum of SEA market,sustain growth momentum of SEA market,

boost mid and long haul markets like U.S. boost mid and long haul markets like U.S. and Europe,and Europe,

Venture forthcoming markets such as Venture forthcoming markets such as

Middle East, Russia, India and Indonesia.Middle East, Russia, India and Indonesia.

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Strengthen the business tourism and public Strengthen the business tourism and public

tourism facilitiestourism facilities

•• Establish the Macao Business Tourism Centre.Establish the Macao Business Tourism Centre.

•• Encourage cooperations between airlines and Encourage cooperations between airlines and

Mega Resorts, e.g. free shuttle bus service, Mega Resorts, e.g. free shuttle bus service,

meals to passengers, etc. 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.

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Thank You Thank You