Macao is getting cheaper for visitors, according to the latest tourist price index (TPI) – which showed a significant quarterly decline in the price index for accommodation.
Published by the Statistics and Census Service (known by its Portuguese initials DSEC), the overall second quarter TPI was down 2.57 percent when compared with the first three months of the year. The index for April to June came in at 140.96, while the January-March period was at 144.68.
Lower room rates saw the accommodation index drop by 21 percent since the first quarter.
[See more: Budget hotels would be a boon for older parts of Macao, says the head of MGTO]
Macao’s accommodation has been criticised as too pricey, with Chief Executive Ho Iat Seng pushing for mainland tour groups to be allowed to take advantage of cheaper rooms in Hengqin. The recent drop in room rates could reflect an adjustment by the sector, which is increasing the supply of budget hotel options to meet demand.
Compared with last year’s second quarter, the overall TPI was up by 2.72 percent – which DSEC attributed to “dearer prices of clothing and jewellery, as well as rising charges for restaurant services,” offset by falling indices for entertainment and cultural activities along with accommodation.
In comparison, May’s composite consumer price index – a measure for overall inflation – was relatively flat, rising less than one percent year-on-year.
