Nomura analyst says sector will only return to normal when which resumes issuing individual visit schemes. <\/p>\n\n\n\n\n\n\n\n
Macau.- While the reopening of Macau’s casinos tomorrow is welcome news for the sector, analysts are predicting it will take some time for the industry to fully recover. <\/p>\n\n\n\n
According to Nomura Instinet analyst, Harry Curtis , the real breakthrough will come when China resumes its individual visit schemes (IVS).<\/p>\n\n\n\n
\u201cThe consensus among local operators we connected with over the weekend is that there will be little material improvement in visitation, GGR and EBITDA until the IVS and tour group customers are permitted to cross the border, which may not normalize for another six weeks,\u201d Curtis said.<\/p>\n\n\n\n
\u201cThe reopening is akin to keeping a body alive without the food required to sustain it\u201d, he warned. <\/p>\n\n\n\n
In his opinion, reopening casinos is likely driven by the government\u2019s concerns about the actions that operators may take. If the shutdown lasts for longer than 30 days, the operators have a legal basis to furlough workers.\u00a0<\/p>\n\n\n\n
\u201cIn our view, the government(s) will reopen the IVS and tour systems gradually and regionally once no new cases have been identified.\u201d<\/p>\n\n\n\n
Operators have already warned of significant daily losses as a result of the shutdown, with Wynn Macau disclosing a daily operating loss of $2.5 million, or $75 million a month, while MGM disclosed a daily loss of $1.5 million. <\/p>\n\n\n\n
Secretary for Economy and Finance, Lei Wai Nong, said the decision to reopen casinos had been made following an extensive assessment of risks. <\/p>\n","protected":false},"excerpt":{"rendered":"
Nomura analyst says sector will only return to normal when which resumes issuing individual visit schemes.<\/p>\n","protected":false},"author":2,"featured_media":3063,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Macau's casino reopening is a preliminary step towards recovery, with analysts, including Nomura Instinet's Harry Curtis, asserting that significant GGR and visitation improvements are contingent upon China's resumption of Individual Visit Schemes (IVS) and tour groups. Operators like Wynn Macau and MGM are reporting substantial daily operating losses, indicating the current reopening primarily mitigates government concerns regarding potential operator actions like furloughs.","focusai_entities":"Nomura Instinet, Harry Curtis, Wynn Macau, MGM, Lei Wai Nong","focusai_location":"Macau, China","focusai_target_profile":"ceo_executive (1.0), regulator (0.9), compliance_legal (0.7), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"IVS Resumption Impact","query":"What specific GGR and EBITDA growth projections are contingent upon the full normalization of China's Individual Visit Schemes and tour group travel to Macau?"},{"label":"Operator Financial Resilience","query":"How are Macau's integrated resort operators planning to manage sustained daily operating losses, and what are their liquidity positions given the delayed market normalization?"}],"footnotes":""},"categories":[160,157,28,16338,158],"tags":[29,7299,257],"class_list":["post-3645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-business-news","category-casino-news","category-east-asia-news","category-slider-home","tag-casino","tag-coronavirus","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=3645"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3645\/revisions"}],"predecessor-version":[{"id":3667,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/3645\/revisions\/3667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/3063"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=3645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=3645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=3645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}