Analysts predict Q3/Q4 recover in Macau
“Once the COVID-19 situation stabilises and outlook on contagion begins to improve, we expect a solid recovery in Macau,” – Ben Lee, iGamiX
Macau.- Analyst have said that gaming revenues will likely recover from the Coronavirus outbreak in the third and fourth quarters of the year once travel restrictions have been lifted.
“Assuming the epidemic peaks in the next two months, we might see a recovery in Q3/4. The underlying manufacturing sector in Guangdong province is fragile and will need to recover before we can start to see the players returning to play over more,” Ben Lee from IGamiX Management & Consulting, told the Macau News Agency.
“Once the COVID-19 situation stabilises and outlook on contagion begins to improve, we expect a solid recovery in Macau,” he added.
The Gaming Inspection and Coordination Bureau (DICJ) revealed a dramatic plunge in gross gaming revenue in February with figures down 87% year on year.
Total revenue was just MOP3.1 billion (€350 million) for the month, but the figures come as no surprise after the government took the decision to close all 41 of the city’s casino for 15 days as part of efforts to halt the Coronavirus outbreak.
This represents the lowest monthly results recorded in Macau since 2005.
Travel restrictions, including visa bands and flight cancellations, led to a visitor numbers dropping to record lows during February.
According to Macau Government Tourism Office (MGTO) Director, Maria Helena de Senna Fernandes, occupancy rates at local hotels fell to 11.8 per cent with average daily room rates as low as MOP690 (around €77).
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