Australian Shares Down As Star Entertainment Group Falls 5%

Australian Shares Down As Star Entertainment Group Falls 5%

Australia – Shares in companies located in Australia are down considerable amounts, particularly those linked to the economy of China, amid coronavirus crisis.

Following the bushfire crisis, which is reportedly still spreading in places like Canberra and Kangaroo Island, Australian firms have been rocked as stocks and share prices plummet down under.

Industries and corporations that are linked closely with China, including hospitality and gaming, are suffering consequences from preventative decisions in China to stop the deadly disease from spreading.

Precautions in China resulted in reduced or suspended travel schedules to and from the world’s most populous country, which has had a negative knock-on effect of both visitor numbers to Australia and revenue generation.

Two major casino establishments in Australia that are reliant on high roller spending from China; Crown Resorts and Star Entertainment Group have witnessed a drop of over four percent and five percent respectively.

Star Entertainment Group is one of the biggest gaming firms in Australia, employing over eight thousand staff and taking over 2 billion Australian dollars in revenue. The organisation currently operates three casino venues in Sydney, Brisbane and the Gold Coast.

Simon Westaway, executive director at the Australian Tourism Industry Council commented:

“Any decline in passenger volumes would add to the challenging operating conditions facing Australian airports, including moderating passenger volumes due to lower arrivals from China, tepid consumer confidence and the impact of the bushfires on the peak holiday season.”

Westaway added:

“We’re receiving about 1.5m short-term arrivals a year out of China, so it’s our largest inbound market. So therefore there are clear challenges ahead on the basis of the sheer numbers alone, and the fact that we’ve built a strong relationship between our countries.”

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