Macau Casinos Face $25 Billion Debt Crisis by End of 2022

The net debt of six casinos in Macau is expected to reach $25 billion by the end of 2022. China's strict travel bans have hampered Macau's economic recovery, resulting in challenging times for several firms. Morgan Stanley's projections came up with $25 billion, noting a rise in earlier debt from $5 billion in 2019 to $20 billion as the causative factor.

Extended reopening delays will only aggravate the Asian market; the $25 billion amount might be attained by the end of the year if limitations remain in effect. If China's travel ease is postponed until late 2023, Macau's net debt might climb by $2 billion, reaching $27 billion by end-2023. Macau's economy has been in desperate need of a revival since 2020.

Macau had 655,505 tourists in February of this year, a considerable decrease from the 3.5 million in February 2019. Mainland China accounted for approximately 93 percent of early 2022 tourists.