How Covid-19 Impacts Macau’s Revenues

Image by Macau Photo Agency
Article by : Helen Nov 25, 2020

Many unexpected things have happened in 2020, and much of it is not pleasant, to say the least. It is a year that has changed the way we live, work and relax, and the reason for this is a previously unknown virus called covid19. Its impact is particularly noticeable on the economy, and the gaming market is no exception. Casino operators have been hit hard by the global quarantine and casino closures.

A good example of the impact of the virus is the gaming industry Macau , and the latest data confirms this.However, the ATS government collected $117.1 million in October, up 54.8% from September 2020.
Under normal circumstances, the casino industry significantly supports the Macau government, but with the coronavirus pandemic, it does not have enough power to pay enough gambling taxes. In 2019, the city’s total revenue was 66.5 per cent higher than in 2020, when it was $4.51 billion. According to previous estimates, the city had expected to generate $13.71 billion in total and capital revenue together. However, Macau managed to generate $10.1 billion: 27% less than the projected amount.

In any case, there were positive developments in October, and it was one of the best months for Macau’s gaming industry since Covid-19. As mainland China has recently relaxed regulations on visiting Macau, visitor arrivals have increased. Macau’s gambling regulator has faced a monthly drop since January, but in October gaming revenue rose to $914 million . Although there is a 72.5% decline compared to the same period in 2019, October showed that Macau has a pretty good chance of a near-term recovery. Not to mention, the government recorded a surplus of $6.01 billion in 2019 and despite all the problems in 2019, the government recorded a surplus of $1.4 billion. Analysts believe the removal of travel restrictions and simplification of the visa process will lead to a market recovery.

By the end of October, the number of visitors had increased. But this is still far from our normal level.

Joe Liu, director of Macau Pass

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Thanks to the annual Golden Week in October, the city saw higher revenues. The slowdown in gambling revenue growth is a good sign for Macau’s gambling industry, but that doesn’t mean there are all the difficulties behind it. It’s time to make amends, and for that reason lawmakers are trying to remove about $2.5 billion from Macau’s reserves. They believe this could offset the effects of Covid-19 and balance the budget. Moreover, the budget for 2021 was recently approved and it could lead to the withdrawal of $3.3 billion from the city’s reserves.

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Helen

Chief Editor

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