The Fall From Grace in Macau As Casino Suppliers Take Their Businesses Elsewhere
The China zero policy contributes to the downslide in the Macau gambling market. This factor has been hampering the recovery from the adverse effects of the Covid period.
Now, the whole situation is worse as the market is racing towards its doom which is majorly concerning for many parties. Thus, casino-related companies have been seen to constantly migrate out of the state to the likes of the Philippines and Singapore.
The Macau destination used to be the most famous gambling spot for travelers. However, the post-Covid period has seen a massive deterioration in the state of things. Thus, the industry’s growth has so far stagnated and, even worse, on a landslide into oblivion. It is envisaged that there would be a 47.5% year after year decline in the Macau gambling market. Therefore, without lifting the zero policy, Macau looks at destructive prospects.
The gambling market in Singapore and the Philippines have been flourishing post-pandemic, unlike in Macau. There has been a rapid recovery from the aftermath of Covid, and we are tipped to even go past the already set standards from pre-pandemic. Thus, it is a no-brainer that many gambling companies and institutions are looking to migrate to these places.
The top guns are leaving, and the situation could only get worse for Macau. The likes of Light & Wonder Light & Wonder Inc. are seeking a better fate in the Philippines and will soon open a new office over there.
If all of these companies leave, the situation in Macau can only worsen as the void will keep plummeting the values of the Macau gambling market. All of these factors are bound to hamper the market’s recovery.
The problems being encountered would essentially extend to the casino operators, who would no longer have access to the supplies from the best gaming suppliers, leaving them in desolate states. Also, without gaining enough revenue, it might be difficult for their doors to stay open to players within Macau.
Four top dogs in the supply chain for casinos in Macau have planned to close up shop and move to greener pastures. This is no surprise, as the market in Macau has achieved a new low at a revenue percentage of 9%. However, South Korea, Singapore, and the Philippines have seen a massive recovery of about 70% in the last months after the pandemic.
Macau’s revenue has always been much more than the likes of Las Vegas. However, all left in the bank is merely a third of what used to be there. To complicate matters, even gambling travelers or tourists are seeking out other alternatives out of the fear that they could potentially be stuck in Macau if another pandemic happens to begin now.
The supply companies will all eventually leave, and casino operators will be unable to stay afloat, thus causing the current happenings in Macau to be very concerning. Tourists also are looking for alternatives that add salt to the injury. The worst might be yet to come for Macau.