Chinese New Year unlikely to boost Macau casinos, say observers
Recent advisory notices issued by local authorities in mainland China, calling on not to travel during CNYear break, further clouds the prospects for Macau gaming, says industry commentators.
Officials in Guangdong province next door to Macau – a major source market for Macau tourism – recently asked residents to spend their holidays within the province. A number of other Chinese provinces and cities has issued similar advice to their inhabitants.
“This advisory can but only have a dampening impact on the potential revenue performance of Macau gaming industry,” remarked Ben Lee, managing partner of IGamiX Management and Consulting Ltd.
Macau junket investor, Luiz Lam Kai Kuong noted: “Even before China issued this advisory, the junket sector was already worried when the resurgence of infection cases were reported in several provinces.”
He added: “The most worrying thing is whether mainland China will again tighten the issuance of travel visas” for visits to Macau, “if the virus spread worsens”.
Hoffman Ma Ho Man, deputy chairman and executive director at Hong Kong-listed Success Universe Group Ltd, an investor in Macau casino resort Ponte 16 said: “It would be an exceptional performance if the business volume of the property could reach anywhere near half of pre- Covid19 levels during this Chinese New Year.”
The Ponte 16 investor acknowledged there was some uncertainty about the Covid-19 situation on the mainland – with what he termed “sporadic outbreaks” – and whether they could be successfully contained before the Chinese New Year break.
Junket investor Mr Lam observed: “There are several uncertainties ahead. First, we are not sure if the pandemic can be well contained. Second, new law of China will come into effect on March 1.”
He added: “This is definitely not good news. China has vowed to crack down on underground banking activities, this just made these activities more covert, and that hurts some players accessibility to their gambling funds.”
Macau’s junket sector was already braced “to prepare for the worst” for this year, as some of the local junket firms had extended cost-cutting measures, such as non-paid leave for their employees, Mr Lam explained.
