Fitch Ratings has noted that China’s zero-Covid policy continues to affect countries that are heavily dependant on Chinese visitors.
Macau.- According to Fitch Ratings, casinos that are heavily dependant on Chinese visitors are facing economic issues while those in countries that have adopted policies to “live with Covid-19” have seen performance improve. Analysts noted that countries such as the United States had seen “revenues fully recover in the second half.”
However, Fitch believes a recovery in gaming revenues for Asia Pacific casinos will not come in 2023 or 2024 due to strict health codes in some countries.
Other countries that are increasing their vaccination rates are Singapore and Malaysia, which are also opening their borders to let the tourism and gaming industries recover. However, China continues to maintain a zero-Covid policy.
Macau has also stuck to this rule and in the last months carried out three mass testings after detecting local cases. China tightened rules for travel between mainland and Macau leading to a decline in the city’s GGR. In October, Macau saw the lowest monthly GGR of 2021, down 25.8 per cent month-on-month and 40 per cent year-on-year.
Analysts added the revision of Macau’s gaming law also poses challenges for the future as it’s unknown if current casino licences will be renewed. Macau’s current casino licences are due to expire in June 2022.
Zhuhai relaxes Covid-19 restrictions for Macau
People who intend to travel from Macau to the neighbouring city of Zhuhai will now be allowed to travel with a negative Covid-19 nucleic acid test certificate issued within the past seven days. The move extends the validity period of tests from 48-hours.
Mainland China continues to be the only country to have a largely quarantine-free travel bubble with Macau and Zhuhai is the mainland travel route for mainland Chinese tourists.