One of the many cities that rely on gaming and the entertainment industry for its revenues is Macau. Just like its counterparts elsewhere, the city has seen a huge drop in earnings in the past few months due to the coronaries pandemic. In the past three years, the city has outperformed its US counterpart in revenues, making around $3 billion every month from 2017 to 2019.
This year, however, with the outbreak of Covid-19 in neighboring Wuhan, and the subsequent closure of cities that saw the contagion affecting people within their borders, revenues have drastically dropped. At the beginning, this drop was pegged at 11% at the start of the year. When the closure happened in February, the city saw a staggering 88% drop in revenues, with the month earning the city only $390 million.
The following month when the city reopened, they earned a bit more, with recorded earnings of $650 million. This, however, is still way below what the city is used to and is still 80% less than what they earned in the same month the previous year. This is troublesome considering that it is a huge source of income for the country.
Unemployment in the city has risen to 2.1%, which is the highest it has ever been in the last 8 years. With the huge influx of tourists and the draw of gambling in the area, the city has always enjoyed a robust economy until of late.
Another problem that is being seen in the shadow of this pandemic is the construction of new venues within the city, particularly the new casino owned by Galaxy Entertainment Group. While the construction’s closure has nothing to do with the virus, it is still weighing on the company’s operations and the continued construction of the venue. The reason for the halt in construction is due to the death of workers when scaffolding collapsed during work hours.