Macau casino industry could be much longer than originally expected due to lingering coronavirus-related travel restrictions.
The Zurich-based organization used an official memo on Wednesday to advise investors that it expects the minority to record total gaming revenue of about $28.93 billion in 2024, according to a report from Inside Asian Gaming. Sources detailed that the figure would be about 20% lower than the $36.17 billion forecast for 2019 and about 18% lower than the financial services company's previous forecast for 2024 of about $35.45 billion.
Capital Causes:
Sardonna Fong, Lok Kan Chan and Kenneth Fong, analysts at Credit Suisse Group AG, reportedly explained that Macau is now expected to have a hard time attracting many once-common mainland gamblers due to China's ongoing policies to contain the spread of the coronavirus pandemic. These measures reportedly include silence on cross-border visa issuance as well as quarantine periods and a crackdown on people who have visited foreign casinos more than three times since early 2019.
Reportedly Read Credit Suisse Group AG Notes…
"We believe that even if the impact of the coronavirus is normalized in the future, restrictions on frequent gamblers, especially outside Guangdong Province, will continue amid China's anti-border game efforts."
Inside Asian Gaming also reported that analysts had lowered individual target shares for six licensed casino operators clubs in Macau by 59%, reflecting expected weak demand. Sources say the move presupposes China will not ease current cross-border travel restrictions before the first quarter of next year, and the region will see initial bulk market margins weaken due to increased marketing costs for leisure players.안전 슬롯사이트
Sluggish scenes:
Credit Suisse Group AG reportedly further emphasized that Macau casino operators will soon pay 1% higher game taxes under the recently passed legislation. Analysts later welcomed just 330 mainland tourists on Tuesday, 99.7% lower than the daily average for 2019 before the pandemic.
The Credit Suisse Group AG note said…
"The industry will stop reacting to negative news with low expectations and will see a limited decline because of a lack of catalysts with minimal, if not short-term losses. While long-term investors can choose to accumulate and wait, the current high risk-free rate and uncertain recovery timing could be strategically less attractive.