Macau’s VIP GGR in the third quarter of this year registered an increase of 55.7 percent in relation to the previous three months, according to data published by the Gaming Inspection and Coordination Bureau (DICJ).
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.
Macau’s gaming operators continued to chalk up heavy headline losses in Q3 as visitation to the territory remains low, but executives say they are hitting the breakeven point in October.
Ben Lee suggests that Macau might switch over its local economy, including its massive casinos, away from the Pataca or Hong Kong Dollar to the Digital Yuan. He sees this as an “elegant solution” for many of Macau’s economic challenges, and one that still leaves important roles for the junket industry as well.
Before delving into the much-discussed path of Macau’s diversification efforts and challenges in the past 20 years, and future outlook, let me take a step back. During Covid-19 there are 3 lines of concurrent thought for a ‘strategic’ tourism recovery, that is, one that better positions the city for greater sustainable development in the medium to longer term – one aim being a diversified tourism portfolio.
This pandemic has changed the lives of many Macanese and millions of others globally. In this part of the world, we have moved from controlling its proliferation to managing a potential deep economic fallout as a result of it.
A sign Beijing is once again ramping up its anti-corruption rhetoric, combined with an increased focus on capital outflows, are likely to be further factors hindering recovery in Macau.
Macau is likely to recover faster than Las Vegas from the impact of Covid-19, but the trajectory remains opaque, Fitch Ratings said.
China’s clampdown on online gaming to stop capital outflows is having a negative impact on liquidity in Macau’s VIP sector, Reuters reports.
The children of the late King of Gambling, Stanley Ho, are continuing to fight over his fortune, with his oldest daughter becoming the latest to register an interest in his estate.