Macau-Hong Kong travel bubble could start later in the summer
According to Bernstein Research, a travel bubble between Hong Kong and Macau could be launched later in the summer as long as Covid-19 cases continue to decline in Hong Kong.
Macau.- The long-awaited travel bubble between Hong Kong and Macau could be close to becoming a reality if Covid-19 cases remain under control in Hong Kong.
Last September, Macau’s chief executive, Ho Iat Seng, said the travel bubble between Macau and Hong Kong would be possible once Hong Kong reported zero Covid-19 cases. As Hong Kong hasn’t reported a local case since June 8, that criterion appears to have been reached
According to Bernstein Research, “a travel bubble encompassing China/Hong Kong and Macau would be a key driver for growth.”
In April, there was a breakthrough when Sophia Chan Siu-chee, Hong Kong’s secretary for food and health, announced that Hong Kong would allow non-residents from Guangdong province and Macau to enter Hong Kong without undergoing quarantine.
Hong Kong is one of the key outbound markets for Macau’s gaming industry as it provides 10 to 15 per cent of Macau’s annual casino gross gaming revenue (GGR).
Bernstein has recently predicted Macau’s GGR for June will be down 30 per cent month-on-month to 72 per cent of 2019 levels.
Macau GGR for the second week of June was down by 24.3 per cent when compared to May. GGR was MOP219m (US$27.3m). That compares to MOP1.35bn (US$169m) in the first week of June.
The decline in GGR is attributed to a rise in Covid-19 cases in the province of Guangdong, which has led Macau to tighten controls.
The government announced those who had been in Guangzhou or Foshan within the previous 14 days are required to undergo a nucleic acid test. People who want to enter Macau from Guandong must show a Covid-19 negative test issued within 48 hours.
Casino operators have been ordered to resume countermeasures such as the mandatory use of masks and use of the Macao Health Code, the government document that classifies health status by colour: red, yellow, and green.
However, the number of cases in Guangdong has started to decline during the last week and authorities believe the neighbouring province will be Covid-free by June 20.
Analysts also added that Macau’s GGR is usually weak in June when compared to other months. They expect a further recovery within July and August during the summer holiday period.
