Donaco’s Vietnam casino sees visitor decline of 75% in February to date
Wednesday, Donaco issued a voluntary notice on the Australian Stock Exchange stating the drastic effects the novel coronavirus has had on its China-bordering casino Aristo International Hotel in Lao Cai, Vietnam. The border crossing, between the Yunnan Province and Lao Cai, is highly restricted and only allows those who have an “urgent” or “official” business reason to cross.
For the first eleven days of February, total casino visitation dropped 75% averaging just 125 players per day, compared with 501 in the same time period for 2019. Rolling chip revenue fell even further, declining 82% from RMB317 million to RMB58 million.
The company notes that currently there is no timeline for the border reopening, and it likely depends on the success of China’s efforts in containing the virus. Many staff members have been given unpaid leave and Donaco is deferring various capital expenditure projects.
Donaco’s largest business, Star Vegas in Poipet, Thailand has seen “no direct impact noticed as yet from the coronavirus.” The casino is in northwest Cambodia, bordering Thailand. However, Donaco notes that if in the long term, if the efforts to contain the virus are unsuccessful, Thailand’s tourism-dependent economy will be hurt, therefore affecting profits of Star Vegas as well.