Macau – Macau is expected to be very quiet for a long time, according to Hong Kong gaming firm Melco Resorts & Entertainment, a developer, owner and operator of casino gaming and entertainment casino resort facilities in Asia.
The firm said today that it expects to face very challenging times and that it could experience some loss making days that will be difficult to recover.
As the coronavirus crisis rumbles on, gaming firms in the ‘Las Vegas of Asia’; Macau, are witnessing chronically low visitor numbers, despite the majority of casino establishments re-opening yesterday.
David Sisk, chief operating officer at Melco Resorts & Entertainment commented on the impact of closures following the coronavirus outbreak:
“I think our revenues are going to be impacted in a great way. Obviously we’re going to try to minimize our costs as much as we possibly can, but we are going to be challenged and obviously, we’re not the only one out there. It’s going to be challenging for the next four to six months.”
Studio City Property President Geoff Andres added:
“In the scenario that David just painted, it is certainly possible we could have loss-making days in the casino, even with the casino open. As we opened up at Studio City, we had about 10 customers that came in,” he revealed. “As we opened up City of Dreams there were maybe 10 to 12 customers there.”
Andres expanded on the difficulties casinos in the Special Administrative Region face:
“And when I left the casino at two in the morning, we had 20 customers at City of Dreams. It’s just going to take some time given the safety protocols that we have in place. I don’t think we want anyone to walk away from the thinking that everything’s going to be just perfect and rosy coming out of this going forward.”
David Sisk elaborated on the additional hurdles his firm will face in the next six months and what the road to recovery will look like:
“One of the things we’ve seen that has not been mentioned is all the time the kids (in China) have been out of school to this point,” he said. “Typically, July and August are the school holiday periods. We think that a lot of the kids in China will probably be going to school during that July, August period, which we think is going to have an impact on our visitation, whether it be for hotel occupancy or just customers coming to see us. So, we’re not as hopeful in the next, let’s say four to six months. We think it’s going to be very challenging. As I said, we opened up last night and there was a trickle of customers.”
Lawrence Ho, Melco Resorts & Entertainment Chairman and chief executive officer predicted that Macau will be ‘very, very quiet for quite a long time.’