Macau gaming industry income significantly affected by the spread of COVID-19
The world’s сore gaming Mecca has faced another massive drop in revenue caused by the global pandemic of coronavirus infection, originated in China and spread all over the world.
Recently, Macau reported the unprecedented revenue reduction for 80 percent in March. The report was released by the Gaming Inspection & Coordination Bureau. Casinos won $658.7 million from gamblers in March as the former Portuguese colony experienced its sixth straight month of year-over-year decline.
Strict measures and restrictions along with the massive quarantine imposed in the majority of countries keep testing the strength of business and hurt local casinos. Very few flights with a few tourists were registered crossing the border of the Guangdong province.
March’s decline comes after February’s record-setting 88 percent drop in revenue when local casinos had to shut their doors for visitors for two weeks in order to hold back coronavirus spread.
Analysts farsightedly forecasted the revenue decrease by about 79 percent in March. With the outbreak continuing to spread worldwide, Macau’s government slashed the forecast of the 2020 gaming revenue in half. The government now expects casinos to generate $16.2 billion in 2020. In comparison, during the year 2019 casinos generated more than $36 billion, which were just 4.8 percent down from 2018.
Leading up to the spread of COVID-19, Macau was plagued by a two-year-long trade war with the U.S. and escalating protests in Hong Kong, which curtailed tourism.