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GDP of 'Macau casino capital' falls by 50%

Posted on by Admin

01-10-2020 |  

Lockdown measures to contain the Covid-19 epidemic have had a major impact on macau's casino, hotel and tourism business.

Macau's statistics agency recently said the region's GDP in the first quarter of this year fell by 48.7 percent, the fifth consecutive quarter of GDP plunge. In particular, the number of tourists coming to Macau was also 68.9% less than the same period in 2019. The tourism and casino business – which accounts for a large proportion of the city's GDP – slipped 63.9% and 61.5% respectively.

Macau GDP jailed for 19 years

Macau's economy is heavily dependent on the casino business. Photo: Casio.org.

The cause came from lockdown measures prevented when the novel coronavirus pandemic – originating in Wuhan, China – broke out and spread throughout the world. Macau's economy is heavily dependent on casinos, so the plunge in revenue from casinos, hotels and the tourism industry is causing a major economic shock to the post-Covid-19 "black country."

Currently, Macau still restricts visitors from China due to fears of a re-outbreak of the disease. The order is expected to be lifted earlier this month, while the individual tourist visa program will be restarted shortly afterwards.

Bloomberg quotes Vitaly Umansky , senior analyst at Sanford C. Bernstein in Hong Kong, commenting on the future of the red-and-black economy. "There are not many prospects for macau's economy after the pandemic, especially as the Chinese are less in need of gambling due to the recession."

Meanwhile, experts at OCBC bank expressed optimism for the city's tourism industry. "Once the global blockades are lifted, the worst period for the Macau or Hong Kong tourism industry will end. No economy can recover and grow while still worrying about a second wave of infections," the experts stressed.

By Zing

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