Macau’s recovery from the effects of the coronavirus pandemic will not be as fast as previously thought. Although the latest financial results in november suggested that the economy of this region of China was gaining more momentum, since last week the outlook has darkened a bit more.
Analysts expect that a new rebound will soon be registered and the recovery and growth forecasts will improve. In the first days of november, Macau casinos reported gross gaming revenue (GGR) of $ 31.1 million per day. But this figure fell to $ 23.2 million a day last week. This is 73% less than in 2019.
For JP Morgan analysts this setback should not be a reason to worry so much, as they say that the GGR estimates for november are maintained until now. Despite the fact that the year-on-year drop in income is quite significant, between 60 and 65%, for now no further decline is expected.
Figures for november are lower than forecasts. As of the first days of the month, Macau casino reports indicate a combined GGR 71% lower than in 2019 and 6% lower compared to october. The problem continues to be the arrival of visitors from mainland China and Hong Kong.
Furthermore, restrictions before and after traveling to Macau still keep the flow of visitors low. Hong Kong residents are forced to quarantine for two weeks after visiting Macau.
“The [Hong Kong] situation poses risks for us. If we resume travel ties with them now, how are we going to deal with mainland China? We hope that Hong Kong can… reach zero cases of Covid-19 infection [for 14 consecutive days], which would qualify them [China] as a low-risk place,” added Macau CEO Ho Iat Seng.
After a meeting held with the Legislative Assembly of the city, Ho offered statements to the media in which he described to try to improve the situation:
“We will have conditions to welcome travelers from Hong Kong, requiring that they only submit a COVID-19 test result.”
Regarding the new concessions for the opening of casinos in the city, and the possibility that this process will suffer further delays due to COVID-19 Ho, he said that the city is ready to adopt contingency plans and noted that: “the government of the RAE would have relevant mechanisms to handle [any delay]. We still have time.”
Macau officials have repeatedly stated that they will maintain the schedule and if necessary make changes.