A Jefferies Group expert posits that Macau’s gaming sector won’t completely rebound until 2023. The global health crisis severely impacted Macau, as stringent travel limitations and commercial shutdowns crippled the gambling sector, the region’s economic engine. The effects have reverberated throughout Macau’s economy, with joblessness skyrocketing to levels unseen since 2009.
Data published earlier this month illustrated the severity of the situation: July’s gaming income plummeted by a massive 95% compared to the same period last year, signifying the most significant year-over-year decrease since the health crisis commenced. The actual revenue amount – 3.98 billion patacas – constitutes an 84% plunge compared to June’s figures.
The expert, Andrew Lee, suggests that visitor counts will stay depressed for the foreseeable future as individuals remain apprehensive about additional lockdowns and travel limitations. His projection is even more bleak than that of Ben Lee, a managing partner at IGamiX Management & Consulting, who, while anticipating “dreadful” outcomes for July and August, believes a resurgence could transpire sooner.
Although casinos resumed operations in July, they are subject to rigorous operational constraints, including caps on the number of staff and patrons permitted inside concurrently. Given that travel to and from mainland China – the origin of the vast majority of gamblers in Macau – remains restricted, customer numbers are a mere fraction of pre-pandemic levels.
The gambling sector in Macau suffered a significant downturn in the April-June period of 2022, as pandemic-related limitations continued to affect the area. MGM China saw its income drop sharply by almost half, while Melco Resorts & Entertainment faced a nearly identical decrease. Studio City, a branch of Melco, announced a particularly staggering deficit of $1.9 million. The firm admitted that the consequences of the health crisis will persist in significantly burdening its activities, financial standing, and outlook for the July-September quarter of 2022.