Impact of China's Zero-COVID Policy... Macau Casino Revenue Plummets to One-Tenth

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Hyunjung] Bloomberg reported on the 1st (local time) that casino revenues in Macau, the world's largest casino market, have plummeted due to the impact of China's zero-COVID policy.

According to the Macau Gaming Inspection and Coordination Bureau, Macau's casino revenue in April recorded 2.68 billion patacas (approximately 331 million USD, about 418 billion KRW). This represents a sharp decline of 66.5% compared to the same period last year and a 27% decrease compared to the previous month. Compared to the pre-pandemic level in 2019, it has dropped by 89%, shrinking to about one-tenth of that level.

Macau's largest customers are travelers from mainland China. According to the Macau Statistics and Census Service, the number of visitors in March was about 527,000, a 30% decrease compared to the same period last year, with most coming from mainland China (April data not yet released).

With China's Labor Day holiday season in May approaching, Bloomberg forecasts that Macau will miss the opportunity of this peak season as China continues to adhere to its zero-COVID policy.

Although the COVID-19 situation in China is worsening, Macau has significantly eased some quarantine controls. The number of cities subject to COVID-19 testing and quarantine has decreased from 80 last month to 30 recently.

Vitaly Umansky, an analyst at the U.S. investment advisory firm Sanford Bernstein, said in a recent investment memo, "The easing of Macau's quarantine controls for visitors is a positive sign, but recovery still depends on the developments of China's outbreaks and lockdown measures."