The casino industry around the world has been struggling for the past few months. In Macau, where some of the biggest casino-resorts are located, the casinos have been earning almost no money. Fortunately, Macau’s gaming revenue may soon begin to increase rapidly.
China is lifting travel restrictions into Macau. Many analysts predict a huge surge of tourists flocking to this gambling destination. Today, we’re going to look at how this might affect US casino companies.
Let’s get into it!
China is Lifting Travel Restrictions to Macau
China was one of the first countries affected by the new coronavirus spreading around the world. Officials took intense measures to prevent major spreads and now, much of everyday life is beginning to return to normal here. Now, the Chinese government is beginning to allow its citizens to travel to Macau.
This is an exciting move for many people in the country. Macau is one of the most popular vacation destinations for many Chinese nationals. In fact, the vast majority of Macau’s gaming revenue is earned from Chinese players.
Over the next few weeks, China will begin allowing more of its citizens to visit Macau. The casino-resorts here have been open for many weeks. Due to the travel ban, however, this city is earning very little revenue.
Like many other cities, Macau is ordering all of its casinos to adhere to strict social distancing measures. Total occupancy in these gambling venues is being reduced. Some measures, such as installing plexiglass barriers at table games, are also mandatory.
It remains to be seen how many tourists will begin flocking to Macau. Many expect travel deals to begin appearing here. Several of the biggest US casino companies are now looking at this city as one of their primary revenue sources.
Macau’s Gaming Revenue is Expected to Increase Quickly
Much like Las Vegas, Macau is a city that relies heavily on its gambling industry. As we already mentioned, many of the biggest and best casino-resorts on the planet are based here. City officials have been working hard to start getting revenue back to normal.
Of course, things were bad in this city even before the global pandemic hit. The US-China trade war significantly hurt the Chinese economy. As a result, less people from this country have been visiting and gambling in Macau.
Things may finally be starting to improve. China’s economy has been slowly getting back on track. The government has now given the green light for many of its citizens to start making the trip back to this city.
Officials within Wynn Resorts are clearly happy to see this happen. The company released a statement to the media about this situation.
“It has been announced that Guangdong Province, a People’s Republic of China province adjacent to Macau, has eased quarantine requirements for those traveling between Guangdong Province and Macau,” the statement said. “Certain groups of people, including students, teachers and certain non-resident workers who are PRC citizens can travel between Macau and Zhuhai, a PRC city adjacent to Macau, subject to certain health declaration and testing requirements.”
Macau’s gaming revenue will be extremely important for many US casino companies. Many of these companies have lost an incredible amount of money due to the country’s regulations. The ones with casinos in Macau may finally see their earnings come back.
Las Vegas is Getting Back to Normal
The past few months have been incredibly difficult for casinos around the world. From an economic standpoint, Las Vegas was one of the worst-affected cities in the country. Fortunately, things are slowly getting back to normal here.
On June 4th, several of the biggest casino-resorts in this city finally reopened to the public. Most tourists here claimed things were just as fun as they were before. That’s a little surprising, especially considering there are now intense social distancing measures set in place here.
Over the next few weeks, many more of the casino-resorts here are scheduled to open back up. That includes the Aria, the Linq, and Mandalay Bay. Tourism is increasing here every single month.
It may be a long time before things get back to how they were back in January. Some health experts also warn that a second wave of cases could end up shutting down the casinos in Las Vegas once again. It’s a complicated situation that’s constantly evolving.
Hopefully, Macau’s gaming revenue starts to increase this summer. It will be hugely beneficial for many US casino companies.
Stay tuned for more US casino news over the next few months!