The casino operator Paradise Co expects sales of KRW98.7bn, down 46.6 per cent year-on-year.
South Korea.- Shinhan Investment has reported that the South Korean foreigner-only operator Paradise Co expects to record a consolidated operating loss of KRW14.9bn ($13.3m) in the first quarter of 2021.
The casino operator is struggling due to the absence of international visitors. It expects to record KRW98.7bn in casino sales, down 46.6 per cent year-on-year.
According to analysts, the main customer base for foreigner-only casinos are foreigners currently residing in Korea due to the two-week mandatory quarantine for all new arrivals in the country.
Paradise Co. has reported that revenue for the first three months of 2021 combined was down 55.9 per cent year-on-year to KRW68.02bn (US$60m).
The Korea Tourism Organization (KTO) stated that only 65,582 tourists visited South Korea in February, down 90.4 per cent year-on-year.
Paradise Co. is not the only South Korean casino in trouble as a consequence of the Covid-19 pandemic.
Grand Korea Leisure (GKL) posted revenue of KRW5.95bn (US$5.3m) for March 2021, 49.1 per cent lower than revenue for March 2020.
To offer some relief for casinos, the Ministry of Culture, Sports and Tourism has announced it will postpone the deadline to pay sales taxes.