Macau was well-known as a destination for gambling back in the day. However, the world went into a lockdown mode with COVID-19 pandemic and tourism came into a halt. This created a major impact on the gambling industry of Macau. However, it could come up with a strategy to overcome the negative consequences created by the pandemic. Let’s deep dive into the facts and see how it happened.
The effects created by Covid-19 Pandemic
The global Covid-19 epidemic has wreaked havoc in every sector on the planet. Macau’s and the world’s casino sectors were particularly hard hit, with closures, a lack of visitors and events, and month-on-month revenue declines.
Prior to 2020, Macau was a thriving entertainment city, capable of competing with any of the world’s largest entertainment facilities. Macau became a ghost town when China fled to the mainland to focus on treating the virus and travel prohibitions were imposed. As the investors withdrew, massive hotels that were once packed to the brim sat empty, and half-finished mega casinos were never completed.
For all intents and purposes, it resembled the Old West’s desolate mining towns. There was no incentive for anybody else to stay once the gold, silver, and money ran out, so those who stayed had to find a means to make a living.
Increase of tourists in the month of November 2020
Macau has continued to have difficulties in attracting visitors to the little island. However, a tiny uptick in November 2020 served to bolster confidence for the special administrative region’s future prospects. Macau’s economy experienced a minor boost thanks to the Macau Grand Prix, which attracted 28,000 visitors, the highest single-day total in the previous year.
Analysts are less hopeful about future boosts of this nature, claiming that Macau’s economy would continue to be hampered by a lack of tourism until visa restrictions are eased and the necessary 14-day quarantine period for visitors from China and Taiwan is abolished.
Macau’s top executive, Ho Iat Seng, has questioned the country’s “excessive dependency” on the casino sector throughout the last year of exceptional events, economic deterioration, and broad global developments. Any region that is reliant on a single sector is constantly at risk of losing that industry overnight, wiping out the economy.
New Year begins with new home
Even with hopeful outlooks for the new year, casino revenue in Macau fell 63.7 percent in January compared to the previous year. Because of an increase in COVID-19 cases across the border, the world’s largest casino center is still struggling to recruit tourists from its primary market of mainland China.
The government officially announced January casino income numbers, which indicate a significant drop from the previous year, with only 8 billion patacas ($1.00 billion) in total revenue. The persisting Covid-19 epidemic, complicated immigration and visa rules, and a lack of tourism are all clear causes.
Stay-at-home orders were issued throughout the world, and it was no longer safe to walk outdoors or assemble in public places, forcing companies that rely on foot traffic and bodies through the door to either rethink their business model or close.
However, the casino sector as a whole has done an outstanding job pivoting and redesigning its business model. The majority of gamblers have gone online, which might have a long-term impact. Many new online casinos have started up as a result of changes in gambling rules, and they are beginning to thrive. Players are coming to realize that, while conventional casinos have their allure, they aren’t the only option to play. Many countries throughout the world are increasingly turning to online casinos as a means of entertainment.
Hope is there on the horizon
Despite the fact that the present picture for Macau appears to be grim, there are indicators that things may be looking up.
However, according to market data for December 2020, Macau’s economy is beginning to show signs of improving, with a growth rate of about 4%. Despite the pandemic and difficult economic conditions, there has been a tiny and steady recovery that may provide some hope for Macau’s casino operators in the coming year.