Since the outbreak of the Covid-19, Macau has been one of the places with the most effective epidemic control. So far, there are only 46 confirmed cases, all of those having recovered, and no deaths from the disease. However, it resulted in enormous economic loss to Macau which heavily depends on tourism. After entering the second half of 2020, the Macau economy has slightly improved due to gradually lifting its travel ban.
Macau economic performance during Covid-19
According to an earlier forecast, Macau GDP this year will shrink by 54.5% to 56.9%. The economy of Macau heavily depends on tourism and gaming. The travel ban during the Covid-19 caused the gaming revenue in Macau to plummet. The forecast listed five scenarios for the estimation of tourist arrivals. They are: 1) 5.16 million, 2) 7.92 million, 3) 9.9 million, 4) 10.68 million, and 5) 12.66 million. And if the worst two scenarios happen, the economy will shrink between 58.4% to 60%, which will bring the economy of Macau back to its level in 2004.
Macau economic performance 2020Q2
According to the data released by Macau Gaming Inspection and Coordination Bureau, in the second quarter 2020, the total revenue of games of chance is MOP$3.234 billion (US$400 million), a year-on-year drop of 95.59% and a quarterly drop of 89.39%. VIP gaming revenue of Q2 was only MOP$1.503 billion, a year-on-year decrease of 95.66%, a quarterly decline of 89.85%.
During the lockdown, 41 casinos in Macau remained in operation, with a total of 5,869 gaming tables. There were only 7,595 slot machines in operation, dropped by 10043 year-on-year. As a result, slot machine only generated MOP$432 million, a drop of 88.39% year-on-year and 72.13% quarterly.
Macau visitor arrival grew 206.9% month-on-month in August
Macau’s visitor arrivals reached 227,113 in August, which is a substantial improvement compared with July. However, compaing with the same month in 2019, it was still a decrease of 93.7%.
According to Statistics and Census Service (DSEC) of Macau, there were only 156,481 same-day visitors and 70,632 overnight visitors in August. And 88.4% of them were from mainland China as the spread of the virus in China has been effectively under control. Even though the full recovery of Macau’s economy won’t happen until next year, as long as the China-Macau border keeps opening up and mainland tourists arriving, Macau can have a respite facing the economic pressure.