After experiencing its worst year financially since 2004, Macau’s casinos are showing signs of recovery. In 2020, Macau’s casinos saw revenues drop by nearly 80% due to the impact of the COVID-19 pandemic and the Chinese government’s restrictions on travel to the region. However, as the pandemic has come under control and travel restrictions have eased, the casinos in Macau have begun to see an uptick in business.
According to data from the Macau Gaming Inspection and Coordination Bureau, the region’s casinos saw revenues of MOP 21.7 billion ($2.7 billion) in December 2021, a significant increase from the MOP 4.3 billion ($543 million) in the same month the previous year. This marks the fifth consecutive month of year-over-year growth for Macau’s casinos. The trend is expected to continue as more people return to the region and visit the casinos again.
One key factor driving Macau’s casinos’ recovery is the return of high rollers from Mainland China. These high rollers, who make up a significant portion of the casinos’ revenues, have been largely absent from the region due to the pandemic and the travel restrictions. However, as the situation has improved, many of these high rollers are returning to Macau, boosting the casinos’ bottom line.
In addition to the return of high rollers, Macau’s casinos also benefit from an increase in domestic tourism. With many people in Mainland China still hesitant to travel internationally, more people are opting to take vacations within the country. This has led to an increase in the number of people visiting Macau, and many of these visitors are making a stop at the region’s casinos.
Macau’s casinos also benefit from implementing new safety measures, which have helped reassure customers and encourage them to return. These measures include temperature checks, the use of face masks, and the installation of hand sanitizer stations.
Despite the encouraging signs of recovery, Macau’s casinos are not out of the woods yet. The region is still facing a number of challenges, including the possibility of further outbreaks of COVID-19 and the ongoing economic uncertainty caused by the pandemic. However, with the return of high rollers and increased domestic tourism, Macau’s casinos are well-positioned to continue their recovery and return to profitability.