According to a report last month, the total gambling revenues of 39 casinos in Macau have dropped by 96.8% compared to last year. The current total revenue is just over 94.42 million dollars. The main reason for the reduction in revenue is due to the compliance with travel restrictions to prevent the Covid-19 pandemic.
According to departmental data from the Gaming Inspection and Coordination Bureau in the GGRAsia report, April figures were down more than 85% compared to March reported at $658.36 million. This means that the total revenue for the first 4 months was only 68.7% lower than US $ 3.91 billion compared to the same period last year.
The difficult controls
In the GGRAsia’s report, the international brokerage Sanford C Bernstein Limited had the statment about the reasons of decreased total gambling revenues of Macau in April. The representative said the main reason for the decline in revenue was because of the travel restriction policy to prevent the spread of the Covid-19 pandemic, enacted at the end of March.
Discerning investors can identify high-end business activities in lucrative casino markets ‘with higher hold in VIP and significant volatility’ in a month period.
The upcoming ending
According to the Sanford C Bernstein Limited company estimate in the GGRAsia report, after travel restrictions between Macau and mainland China were removed, participation in Macau casinos will increase rapidly, but this number 95% lower than the same period last year.
This report also provide information as well as statements of the brokerage like
“It is uncertain when Individual Visit Scheme (IVS)issuances may begin but if the trajectory of cases continues, we would expect to see some form of IVS visa begin in June and continue in a phased manner with group visa issuances beginning late this summer.”
In another report from Credit Suisse AG to Inside Asian Gaming, Kenneth Fong stated that Macau's casino industry will certainly recruiment quickly if mainland Chinese agencies start to open the passport, for allow people to freely travel under the IVS program. Mr. Fang considers that this recovery will be gradual and hopes that the total revenue of gambling games at Macau casinos will increase to around 70%-80% in the summer and 90%-100% in the end of this years depending on when China reopens IVS visas.
In addition, he stated that the recovery could take place more quickly for VIP. This is because there is so much demand for casinos in the anti-Covid-19 restraint process, that revenue could be hastened back to the desired level as pre-Covid period by the end of the summer.