Macau casinos face delayed recovery amid citywide Covid-19 lockdown, high interest rate environment, rating companies say
- Moody’s expects gross gaming revenue for the mass segment to reach only 30 per cent of 2019 levels, before rising to 70 per cent in 2023
- A surge in Covid-19 cases and strict control measures are likely to delay a recovery this year and next, S&P says
Macau’s casino industry faces a delayed recovery from the impact of a citywide lockdown and a higher interest rate environment, according to two global rating companies.
Gaming operators in Macau face low tourist arrivals because of strict coronavirus travel restrictions and, most recently, business closures, according to a report published by Moody’s Investors Service on Thursday.
Macau’s gambling industry has already been hit hard by economic disruptions caused by the coronavirus pandemic, with gaming revenues falling 62 per cent year on year to 2.5 billion patacas (US$306 million) in June. In contrast, revenues in June 2019 totalled 23.8 billion patacas.
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Moody’s expects the city’s gross gaming revenue (GGR) for the mass segment, the key contributor to gaming operators’ profits and cash flow, to remain weak at only 30 per cent of 2019 levels this year, before improving to 70 per cent in 2023.