Macau has tightened restrictions in response to new cases of Covid-19 in Guandong. Tourism services are expected to be impacted by the new measures.
Macau.- The government of Macau has announced it will implement quarantine measures for arrivals from Guangdong after new Covid-19 cases were registered in recent weeks.
Macau health authorities have imposed a 14-day quarantine on people who have been in the districts of Haizhu, Liwan, Nansha, Panyu or Yuexiu in Guangzhou, or the Nanhai and Chancheng districts of Foshan.
The government announced those who had been in Guangzhou or Foshan within the previous 14 days are required to undergo a nucleic acid test. From June 8, people who want to enter Macau from Guandong must show a Covid-19 negative test issued within 48 hours.
The news was received with some unease from the tourism sector. Mainland China is the only country to have a largely quarantine-free travel bubble with Macau, and the majority of tourists who have come to the city in recent months are from Guandong.
Analysts noted that Guandong is also a gateway to other provinces as more than 90 per cent of mainlanders enter Macau through Guandong.
Andy Wu Keng Kuong of the Macau Travel Industry Council said it was difficult to make any forecasts. She said: “What we hope for now is that the spread of infection could be quickly curbed in Guangdong.“
Between May 31 and June 6, tourist entries and exits declined by 22.6 per cent to an average of 40,000 visitors.
Due to the recent spread of Covid-19 cases, Morgan Stanley has cut its forecast for Macau gross gaming revenue (GGR) this year by 19 per cent to US$16.3bn. That would be just 45 per cent of 2019 levels, but it would an improvement of 115.4 per cent when compared to 2020.
Previously, analysts had said Macau GGR could reach MOP189bn (US$23.6bn), about 65 per cent of GGR reported in 2019.
As for corporate EBITDA, analysts estimate US$2.89bn, down 37 per cent from its previous prediction of nearly US$4.6bn.
Morgan Stanley said: “Investors are waiting for Macau revenue/profit to normalise, which needs the reinstatement of the mainland’s electronic application system for Individual Visit Scheme (IVS) exit visas, the resumption of group visas, and Mainland-Hong Kong-Macau reopening.”