The shape of Asia gaming’s road to recovery
The gaming industry is facing its biggest challenge but Chinese will still gamble
Macau’s Gaming Inspection and Control Board (DICJ) reported this week that gross gambling revenue for March had plunged 80 percent to MOP5.3 billion. As VIP gamers are expected to lead the recovery in Asia there is still no clarity as to when the markets will improve, with estimates for revenue continuing to be revised downwards and forecasts for the potential turning point pushed further down the road.
Early optimism for a swift snap back is fading as the virus rages across Europe and North America and Asia suffers with a new wave of contagions, largely imported from elsewhere. As coronavirus continues to wreak havoc across the world, with about half of the world’s population now estimated to be confined to their homes, casinos are shut, events cancelled, and supply lines have been severely disrupted.
“In this context, it’s difficult to see how the world economy and the gaming industry in particular will bounce back from this but bounce back it will,” write Rosalind Wade & Luis Pereira in Asia Gaming Brief.
“Dr Wolfgang Arlt, founder of the China Outbound Tourism Institute takes a look at when the Chinese may begin to start traveling again. His predictions aren’t as gloomy as the daily headlines may imply. He recommends businesses begin a strategy now to attract the upcoming wave of China visitors.
As far as the potential for recovery of the gambling industry, unfortunately there is no real relief in sight, with forecasts for Macau continuing to be cut back and hopes for a quick snap back fading as new restrictions on travel are imposed due to a second wave of imported cases. However, when the visitors do start to return, Macau is likely to be a sought-after destination and it’s the VIPs who are expected to lead the way.
“The gaming industry is facing its biggest challenge in its modern history and to come through the other side will require a fair and frank exchange amongst the best and the brightest. To that end, Asia Gaming Brief is pleased to announce a series of webinars to address some of the key concerns and more importantly to pave the way for solutions. Our first will be held on Thursday, April 9th and will feature Earle Hall, the CEO of AXES Network and an internationally renowned visionary and innovator. Please stay tuned for further details.”
However, the good news is that the Chinese will remain Chinese. After the number of persons globally suffering from Covid-19 has come down to a socially acceptable level, the majority of Chinese will, as before, not wait for gods or emperors to help them, but will diligently and persistently work for the greater fortune of their families.
The good news for Macau is that the Chinese will still combine long-term strategies of investment in real estate and in the education of the next generation, with the short-term strategy of chancing their luck with cards or dice at casinos, or two drops of rain racing down the windowpane!
