Macau on Monday began a weeklong shutdown of its casinos and non-essential businesses for the first time in more than two years.

The Chinese gambling hub is struggling to curb its worst coronavirus outbreak yet.

While Macau’s numbers seem relatively low by global standards, the city follows mainland China's strict zero-COVID policy.

With the city’s 30-plus casinos and non-essential businesses shuttered, authorities are monitoring the flow of people outside amidst a strict stay-at-home order. Those who disobey the order face stringent punishments, including jail for up to two years, the government said.

Essential services like hospitals, pharmacies, supermarkets and fresh food markets can stay open, even as Macau recorded around 1,500 COVID-19 infections since mid-June. Authorities say around 19,000 people were in mandatory quarantine.

Casinos, which account for around 80% of government revenue in normal times, were last shut in Macau for 15 days in February 2020.

China's zero COVID policy 

Last month, Macau closed most of its businesses, from bars to cinemas, in accordance with the now-contested policy. Beijing has sought to stamp out the virus through lockdowns, strict border controls, and mass testing.

Health officials hope that imposing "static management" in addition to intensive testing in the outbreak's third week could help prevent a resurgence.

More than 30 zones in the city have been locked down and categorized as high risk, stopping people from entering or exiting for at least 5 days. While a citywide lockdown has not been imposed, the strict measures mean Macau is effectively closed.

Curbs likely to extend beyond a week

Macau’s casinos, owned by Sands China, Wynn Macau, SJM Holdings, Galaxy Entertainment, Melco Resorts, and MGM Resorts, amongst others, were effectively closed over the last few weeks with no gamblers.

According to experts, the suspension is likely to be extended further by a few weeks, which will make a recovery in gaming revenue unlikely until the end of the third or fourth quarter.

"Even if the outbreak in Macau gets under control, it will likely be another few weeks before Macau-Zhuhai can remove quarantine requirements," said Terry Ng, an analyst at Hong Kong-based Daiwa Capital Markets.

More than 90% of Macau’s residents are vaccinated against COVID-19 but the arrival of the fast-spreading Omicron variant has led to an increase in active cases and with it, great vigilance from authorities.

Neighboring Hong Kong is also considering bringing its rules in line with mainland China by restricting the movement of people infected with COVID-19 and requiring them to register on a government app.

see/rc (Reuters, AFP)