Macau casino stocks fall as virus concerns limit tourism
In a blow to Macau's casinos, the number of tourists from mainland China travelling to the city for Chinese New Year has fallen 75% year-on-year, after the city confirmed its first cases of coronavirus last week.
According to China’s state-run news agency, Macau now has six confirmed cases of the virus which originated in the Chinese city of Wuhan.
Three of the cases are reported to have been guests who stayed in or visited at least three major casino resorts in Macau.
As a result of the outbreak, China has implemented tightened travel restrictions aimed at limiting the spread of the virus.
In addition, the Macau tourism board has announced the cancellation of activities celebrating Chinese New Year.
Tourism from mainland China to Macau fell to its lowest point on Monday, with a total of 20,174 people, an 89% fall from the previous year.
The Chinese New Year holiday is usually a key trading period for Macau’s casino industry, accounting for 6% of Macau’s annual gross gaming revenue in the past three years.
As a result, Wynn Resorts Limited stocks fell 11% in US trading last week, while in Hong Kong trading there was a 13% drop for Wynn Macau and an 8% fall for Sands China.