Mopping Up in Macau

The gradual removal of Covid restrictions for visitation to Macau for most Chinese provinces began in February around Chinese New Year. Early revenue reports since that time have shown just a small uptick in revenue from a year earlier when Macau casinos were the first to close as a result of the pandemic. In its weekly report on Macau operations issued on March 8, Jefferies analysts identified three items which would dramatically improve revenue production.

“We believe a sharper Macau GGR recovery will depend on border restrictions easing via: 1) China re-instituting the electronic IVs; 2) removal/ extension of the requirement for a negative nucleic acid certificate within seven days of arrival; and, 3) removal/relaxation of compulsory quarantine for Hong Kong and Taiwan arrivals. China has reported no new local infection cases since February 14, and only one local infection case since February 7. Meanwhile, Hong Kong has reported less than 20 new daily cases this month.”

The revenue in the chart is expressed as Macau patacas. The conversion rate is 8 patacas for US$1.