Published: 29.01.2020, 19:23
2 min read
The Chinese New Year is one of the most important Asian holidays and during that time of a year, Macau’s gambling sector always experiences a peak. However, the recent coronavirus outbreak that originated in China has had a serious influence on the usually highly profitable period of a year in Macau.
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The Numbers
Sunday metrics point out that the number of Chinese visitors decreased by 80%. Sunday was the 3rd day of the Lunar New Year celebration. Additionally, Macau reports 66% down the decrease of tourism for this time of year.
This decrease might not hit Macau that hard if their casinos didn’t experience one of their worst years in history last year. Macau’s casinos provided $36.5 billion in revenue in 2019 which is 3.4% less than in 2018.
Macau’s Economy
Their economy is centred on the gambling industry and consequently the tourism sector with approximately 80% of Macau’s governmental revenue generated from taxing casino profits. Additionally, the things might further worsen for Macau since their leader Ho Iat Seng spoke to the media last week implying that there is a possibility that the city’s casinos might be closed until the coronavirus gets controlled.
This possibility is not that uncommon because these are the places where diseases could spread because they host a lot of people. Starbucks and McDonalds were among the first to close down until the government subdues the virus.
Coronavirus
So far, mainland China reports 80 deaths from the coronavirus and more than 2,700 infected in China. In Macau, there has been 6 reported cases and no confirmed deaths from the coronavirus.
The news and the decline of the industry resulted in a decrease in stock prices of casinos. Wynn Macau Ltd. stocks fell 13%, Wynn Resorts by 11% and Sands China Ltd. by 8%.
Here’s the most recent statement given by WHO regarding the coronavirus outbreak:
