Operator News
China – New COVID spike to flatten Chinese New Year further in Macau
By Phil - 26 January 2021
Visitation for Chinese New Year in Macau will be worse than originally expected with a new increase in reported coronavirus cases in mainland China forcing more premium players cancelling their trips.
New quarantine measures have been imposed on visitors from six cities whilst daily GGR has fallen from MOP$276m during the first 17 days of the year to MOP$171m from January 18 to 24.
Sanford C Bernstein analysts Vitaly Umansky, Tianjiao Yu and Kelsey Zhu said: “GGR declined materially last week as travel from China came under pressure due to rising COVID contagion. China has been instituting larger scale lockdowns and urging reduction in travel. The travel impediments will lead to reduced visitation into Macau for the next few weeks at least, with Chinese New Year visitation being impacted. Last week’s Average Daily Rate was the softest since the week after October Golden Week as customer travel has been reduced due to the rising COVID contagion and lockdowns in China. Month to date VIP daily average volumes are estimated to be down seven to 10 per cent month-on-month with slightly higher than normal win rate and mass is estimated to be down three to five per cent month-to-month.”
AKenneth Fong, Lok Kan Chan and Rebecca Law from Credit Suisse added: “Premium mass hosts see more premium players cancelling their Chines New Year trips as they cannot obtain the visas to travel to Macau or they do not want to be subject to the quarantine requirements when they return to mainland China from Macau. Junkets are also turning more negative as more players have been cancelling bookings over the past few days. One of the top Macau junkets expects VIP player headcount for peak CNY period (between the second and sixth days) could be less than the last New Year’s Eve holiday. Mass casino floor has become more quiet since last week. They believe there would be fewer players visiting Macau as provincial governments discourage people travelling during CNY.”
