'Macao still has room for hotel expansion'
Updated: 2008-12-03 07:31
By Carmen To(HK Edition)
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Pansy Ho (extreme right), managing director of Shun Tak Holding, signs a management agreement with Gerald Lawless, executive chairman of Jumeirah Group, to operate a luxury hotel in Macao yesterday. CNS |
Even as the gaming industry faces slowdown, there is still room for hotel expansion in Macao, Shun Tak Holdings, a leading conglomerate in Hong Kong with core businesses in transportation, property, hospitality and investments, said.
The company yesterday signed a management agreement with Dubai-based Jumeirah Group, a luxury hotel management company and a member of Dubai Holding, to operate its newest five-star deluxe hotel, which is scheduled for completion in 2013, on Cotai, a reclaimed area off the Macao peninsula.
"We think this is the right time. Following the boom in Macao's hotel and gaming industries in the past few years, we have been facing pressure on recruiting workers for both construction and the hospitality industry," said Pansy Ho, managing director of Shun Tak.
"As the gaming industry slows, pressure on recruitment of hospitality workers will be alleviated. This is also a right time for the new gaming centers to absorb experienced talents," she added.
"Profits gained in the gaming industry have apparently shrunk in recent months, but I believe this is a reasonable correction due to over-development in the past few years. This will no doubt affect the local economy but this will also help the industry development in the long run," Ho said.
"I expect Macao's economy to recover the fastest in the coming years due to its sound fundamentals, with a number of local and cross-border projects being completed in the same period," she added.
Supported largely by its gaming industry and tourism, Macao's economy was hit by the global financial tsunami and the mainland government's policy of restricting numbers of visitors to the territory.
Earlier in November, chief executive of the Macao SAR government, Edmund Ho, announced measures to ease the tax burden and boost fiscal spending to stimulate economic growth.
Ho said the Macao SAR government will spend 10.2 billion patacas on public investment in the coming year, and offer more financial assistance to small- and medium-sized enterprises, electricity and rental subsidies. The SAR government also lowered stamp duties for property purchases from 3 to 1 percent.
Jumeirah owns some of the most luxurious and innovative hotels and resorts in the world, including Burj Al Arab. The group is anticipating the grand opening of Jumeirah HanTang Xintiandi in Shanghai, Jumeirah's first hotel in the Asia Pacific region, next year.
Shun Tak shares closed down 3.38 percent, or HK$0.05, to HK$1.43 yesterday.
(HK Edition 12/03/2008 page2)