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More than 30 zones across the city were locked down Four rounds of mass testing for COVID are scheduled this week Macau’s casinos have been effectively shut down for several weeks
HONG KONG, July 11 (Reuters) – Macau closed all its casinos for the first time in more than two years on Monday, sending shares in gaming companies tumbling as authorities scramble to contain the country’s worst coronavirus outbreak largest gaming hub in the world. The city’s 30-plus casinos and other businesses will close for a week, and people have been ordered to stay at home, although short trips for essential services have been allowed. Police will monitor the flow of people outside and severe punishments will be imposed for those who disobey, the government said. Sign up now for FREE unlimited access to Reuters.com Register Although many casinos have effectively shut down over the past three weeks with minimal staff allowed in, the more drastic measures have hit investor confidence hard. Some analysts predicted that any recovery in gaming revenue might not happen until the end of the third quarter or during the fourth quarter. “We will probably need to write off July and probably August as well from the models,” said DS Kim, an analyst at JP Morgan. Shares in Sands China (1928.HK) plunged 9%, while shares in Melco International (0200.HK), Wynn Macau (1128.HK), SJM (0880.HK), Galaxy (0027.HK), MGM China (2282 .HK) fell between 6% and 7%. Macau has recorded around 1,500 COVID-19 infections since mid-June. About 19,000 people are under mandatory quarantine as the government adheres to China’s “zero COVID” policy aimed at eradicating all outbreaks, bucking a global trend of trying to coexist with the virus. More than 30 zones in the city that have been deemed high-risk are now under lockdown, meaning no one is allowed in or out for at least 5 days. While the government said it did not impose a city-wide lockdown, the strict measures mean Macau is effectively closed. Casinos last closed in Macau in February 2020 for 15 days. The government has been reluctant in the past to close casinos because of its mandate to protect jobs. The sector employs most of the population directly and indirectly and accounts for more than 80% of government revenue. Frustration is growing over the government’s handling of the epidemic. Brawls have broken out at examination centres, while some residents have been forced to wait in queues of more than 20 hours to access healthcare facilities. Residents will be required to take part in mass COVID-19 testing four times this week. They have already been tested six times since mid-June and are expected to do rapid antigen tests daily. More than 90% of Macau’s 600,000 residents are fully vaccinated against COVID-19, but this is the first time the city has had to deal with the rapidly spreading Omicron variant. Authorities have added two hotels at popular casino resorts to be used as medical facilities for COVID-19 as they try to increase capacity to handle the wave of infections. read more Sign up now for FREE unlimited access to Reuters.com Register Report by Farah Master. Editing by Stephen Coates and Edwina Gibbs Our Standards: The Thomson Reuters Trust Principles.
