In welcome news for Macau gaming operators, on July 20 lawmakers in the special administrative region (SAR) announced that some businesses in the city, including casinos, could reopen as of Saturday, July 23.
The measure tentatively signals the end of the city’s most recent Covid-19 lockdown, sparked by a rash of new infections that reached almost 1,800 cases from mid-June.
According to GGRAsia, Leong Iek Hou, head of Macau’s Communicable Disease Prevention and Control Division of the Health Bureau (SSM), provided “only minimal information” on what the two-week “consolidation period” would entail.
At a press conference, Leong said, “After the consolidation period starts as usual on Saturday, the initial plan is to implement the consolidation period for a two-week period, but the actual situation will be decided according to the changes of the epidemic.” In other words, the situation could swiftly change should new cases be identified.
Leong added, “It is not possible to open all residential activities during the consolidation period, but commercial and industrial businesses will be partially opened, and there will also be NAT testing.”
All Macau casinos closed after the government ordered a seven-day lockdown on July 11. It then extended the lockdown for an additional five days.
Macau Chief Executive Ho Iat Seng confirmed that essential businesses as well as commercial and industrial operations would be permitted to operate on a limited basis for the two-week term. As reported by Inside Asian Gaming, movie theaters, beauty salons, gyms, health clubs, bars, nightclubs and public swimming pools will remain closed, while restaurants will only be able to offer takeout.
Health Bureau Director Alvis Lo said, “Casinos will be reopened but no more than 50 percent of staff can be inside the casino and a single space must be arranged for staff during the meal period.” People will be required to wear N95 masks when outside and should stay home if it is not essential to leave.” Those who flaunt the health measures could face stiff punishments.
“During the consolidation period the government will open some parks for the public to relax and take a walk, but no running will be allowed,” Lo said. “People will be required to wear masks but they will not be allowed to run because of the health effects of strenuous exercise while wearing masks.”
Despite the lifting of some restrictions, the chief executive has not backtracked on his zero-Covid policy, which is also the policy of the central government. According to the Macao News, Ho reaffirmed his commitment to the strict approach during a Macau-Zhuhai pandemic prevention meeting last week. That includes mass nucleic acid testing.
For Macau, casino shutdowns challenge the entire economy, as the industry employs most of the population directly and indirectly and accounts for more than 80 percent of government revenues. Recently, J.P. Morgan analysts said the industry could “write off July and likely August” in terms of revenues. Vitaly Umansky of Sanford C. Bernstein now expects gaming revenue to fall 98 percent for this month compared to July 2019. That said, he remains confident in Macau’s long-term recovery, based on mass and premium-mass gaming.
Kenneth Fong of Credit Suisse also expected gaming revenue to be sluggish into August and September, with the recovery beginning in the first quarter of 2023.
