Fitch Ratings Inc. has said that Macau’s economy could rebound after the impact of the Covid-19 pandemic.
Macau.- Fitch Ratings Inc has said that it believes Macau’s economy could rebound by 53 per cent this year. It believes Macau GGR could reach half of pre-Covid-19 levels.
The forecase comes after a study by the University of Macau that predicted the city could see economic growth of up to 33.5 per cent in 2021.
According to Fitch Ratings Inc, Macau’s recovery would be helped by strong gaming and tourism recovery in the second half of 2021 if travel restrictions between mainland China and Macau are eased in the months ahead.
A gradual roll-out of Covid-19 vaccination programmes, combined with a quarantine-free travel bubble will also play a key role in Macau’s economic recovery.
However, Macau chief executive Ho Ian Seng has recently said for now there are no plans to relax restrictions on non-resident foreigners entering Macau.
Macau VIP sector down in 21Q1
Macau casinos registered a low performance in VIP GGR during the first quarter of the year 2021 at under 20 per cent of pre- Covid-19 levels.
According to JP Morgan, this was due to supply issues and reforms that impacted Macau’s junket operators.
Macau’s Gaming Inspection and Coordination Bureau (DICJ) reported there are now only 85 junkets operating in the Special Administrative Region (SAR).
Macau’s GGR for 2020 came in at MOP60.44bn (US$7.58bn), down 79 per cent. Taxes on the gaming industry generated MOP29.81bn (US$3.73bn) in revenue.