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New COVID-19 outbreaks in China affect Macau's recovery

June 09, 2021 +0 Comments
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Massive COVID-19 Testing in Macau

Macau was on a recovery path from the COVID-19 disaster and appeared ready to begin recovery. However, there have been pockets of coronavirus outbreaks in mainland China that now threaten that recovery. To prevent the city from experiencing major restrictions again, health officials are beginning to consider testing citywide to prevent spikes of COVID-19 from occurring. The city government is reviewing whether massive testing is necessary and feasible. There has been a considerable increase in the number of COVID-19 cases in Guangdong province, which is a major tributary of the city.

Currently, travel between Macau and the province requires a negative test taken within 48 hours of a visit to Macau. In addition, anyone who has visited the cities of Guangzhou and Foshan in Guangdong within two weeks if they travel to Macau must be quarantined in a hotel for 14 days. Parts of the city have also been closed and public transport services suspended.

With Macau casinos experiencing zero revenue for several months last year, officials do not want to take chances and prefer to act now. Now, according to the health office, 5,000 people were evaluated yesterday and all the tests were negative. Still, they could test the roughly 650,000 people living in Macau and hope the tests can be completed in four days.

New cases of COVID-19 could hamper Macau's recovery

Gross revenue from casino gambling had started to rebound in recent months as the gambling industry returned to normal, but that changed in late May. Although the new outbreaks are isolated, they are already causing problems for Macau, keeping visitors isolated. Macau continues to operate with travel restrictions in place for most countries, measures that have been necessary to avoid another year of near zero income.

The results analyzed at the beginning of this month indicated a drop in daily income by 33% compared to May. This is going to hurt Macau further and may lead to a further decline in the number of arrivals, according to analysts.

Despite this situation, Macau is preparing for what should be a productive summer. The city has seen a solid increase in gross gaming revenue that is expected to continue. Macau Travel Industry Council Chairman Wu Keng Kuong said they expect Macau to achieve hotel occupancy of between 60 and 70 percent during July and August, as the city's travel trade will still receive the support of tourists from mainland China.

It is still too early to determine how the new COVID-19 problems could affect Macau's efforts to resurface. The pandemic forced Macau officials to delay the reworking of the city's gambling laws. The new gaming framework is expected to be ready by September, but local government officials hope to scrutinize the backgrounds of the six Macau casino operators, which could upset those plans. Macau's six casino dealers have their current licenses valid only through June next year and need to know how to prepare for what could be a completely different gaming experience in the city.

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