Nomura analysts say visitation could return to normal levels “within two months” once Coronavirus restrictions are lifted.
Macau.- Authorities in mainland China could reopen borders with Macau by April or May, according to Nomura’s Instinet LLC analysts.
This would provide a much needed boost to tourism and visitation to the city, which has been struggling since the forced casino closure last month.
In addition to borders being closed, a temporary suspension on visas tour groups have also impacted the Macau economy.
Nomura analysts Harry Curtis, Daniel Adam and Brian Dobson said there were “rapid changes” occurring in terms of investor sentiment regarding Covid-19′s impact on Macau gaming and the wider industry.
But they also noted the possibility of a return to somewhat normal levels of cross-border traffic with the mainland “within two months” based on conversations has with gaming operators in Macau.
“While the [Chinese] government is still shutting access from stricken countries in Europe and Asia, the outlook in Macau and the neighbouring mainland province of Guangdong could encourage gradual resumption of IVS issuance,” Nomura stated.
“More than any other market and sector in the near term, we believe that the demand recovery in Macau, depending on the pace and breadth of border reopenings, has the potential to be steeper than a recovery in global corporate travel,” the analysts noted.