Emperor Entertainment Hotel Ltd is the operator of the Grand Emperor Hotel, a casino venue in Macau. The operator expects to see a net loss of around HKD160 million ($20.6 million) from April through September. This would be a loss from the same time frame last year.
Travel Restriction Issues
In a filing earlier this week within the Hong Kong Stock Exchange, the company said that the loss was mainly due to a decrease in patrons during the reporting period. This can be attributed to the COVID-19 pandemic.
Travel restrictions along with quarantine requirements have led to far less inbound travelers than normal. The casino, which is a satellite venue, has not seen its usual influx of consumers as people are unwilling to travel based on all the requirements.
The visitor numbers for Macau are very low. This year, it is estimated that the region will see a more than 90% drop year-on-year in tourist travel. Despite the tourism decrease, officials are not ready to relax the entry restrictions just yet as they worry about public health regarding the coronavirus.
Unfortunately for Emperor Entertainment, the operator had already reported a drop in revenues for the financial year. The company reported a just over 17% drop in revenues group-wide, earning only HK$1.14 billion (US $147 million). Profits for the financial year ending on March 31 2020 saw a decline in net profits of HK $263.9 million (US $34.1 million).
The loss was mainly due to a decrease in VIP gaming revenues. VIP travelers, like many others, are unwilling to travel at this time, especially due to the quarantine period requirement when entering the country.