By Tony Lai
No trump R
No trump car
ubbing salt in the wound: there’s no better way to depict the current situation of local junkets, which are still feeling the pinch of the slowdown of the mainland Chinese economy and the on-going trade tensions between the world’s two
largest economies. Yet, like many other industries here but to a greater extent, the middlemen for casinos have been dealt another blow: the novel coronavirus (COVID-19). In the wake of a 15-day casino closure and no signs as to when the visitation restrictions will be lifted, there have not been any lay-offs or closures within the sector yet; but some small-sized junkets might be forced out if the high rollers do not come back in time. In a bid to curb the spread of the new virus, which has
infected over 77,000 people on the mainland and 10 people in Macau as of late February, the government took an extraordinary move last month to order the closure of all gaming properties in the city between 5th and 19th February, among other measures. Albeit after the reopening of all casinos on 20th February, all major junkets, namely the Suncity Group, Tak Chun Group, Meg-Star, David Group and Guangdong Group, have said they have gradually resumed their operations. The authorities have yet to say when the restrictions for mainland travellers to Macau, accounting for over 70 per cent of the total visitations to the city and the major source of gaming revenue, will be lifted.
20 APRIL 2020
Some small junkets might risk shutting down after having a woeful year or more – dealt another hit by the novel coronavirus – as it might take months before mainland Chinese high rollers start to come back again.
card left Far from golden times
“Even with the casinos reopening, there will still be a dearth of customers,” brokerage Bernstein said, in a research note in late February. “IVS and group visas into Macau are suspended and most transport is severely disrupted with most airlines cancelling or limiting flights into Macau and surrounding airports.” The analysts at the investment bank led by Vitaly Umansky
forecasted the gaming revenue – including both mass and VIP sectors – could fall 80 per cent in March with no improvement in the visitation, which is expected to decline 90 per cent in February. Latest figures from the local gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ), show the gaming revenue dropped 11.3 per cent in January, before the imminent scale of disruption caused by COVID-19 has been felt; on the heels of a 3.4-per cent decline in 2019, the first drop in four years. Kwok Chi Chung, President of the Macau Association of Gaming and Entertainment Promoters, noted the junkets have
left Attempting to curtail the virus outbreak, which is believed
to have started from the Chinese central city of Wuhan, Beijing has suspended tour groups from the mainland to Macau since late January until further notice. It has also stopped issuing new permits for the mainlanders to visit the gambling enclave under the Individual Visit Scheme (IVS).
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