A Jefferies expert proposes that Macau’s gaming sector may not rebound economically until 2023.
The COVID-19 pandemic severely impacted Macau’s casinos. The government’s stringent travel limitations in reaction to the outbreak devastated the gaming sector, causing unemployment figures to skyrocket to levels unseen since 2009.
Statistics published earlier this month by Macau’s Gaming Inspection and Coordination Bureau revealed that gross gaming income in July plunged by 95% year-over-year, representing the most significant monthly decline since the pandemic’s onset.
Aggregate gambling earnings for July in the region were a meager 3.98 billion patacas (approximately US$493 million), indicating an 84% year-on-year reduction.
Analyst Andrew Lee posits that tourist arrivals in Macau will probably stay low due to apprehensions regarding potential tighter quarantine protocols, with a complete recuperation not anticipated until 2023.
His projection is more downbeat than that of Ben Lee, a managing partner at IGamiX Management & Consulting, who previously forecast a bleak July performance, with August expected to follow the same trend.
Although casinos resumed operations in July, they have been functioning under rigorous constraints, including limits on employee and patron capacities.
Travel between Macau and mainland China remains limited, significantly impeding visitor counts.
Macaus gambling sector suffered a significant decline in the second quarter of 2022, as travel and leisure activities remained affected by COVID-19 limitations. MGM China saw its income nearly halved, while Melco Resorts & Entertainment recorded a comparable 48% decrease. Studio City, a cinema-themed property also managed by Melco, announced a staggering $1.9 million loss for the period. Looking forward, Studio City cautioned that the pandemic will continue to have a substantial effect, with “considerable consequences” anticipated on their activities, financial stability, and overall forecast for the remainder of the year.
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