SkyCity resumes regular activities.
A well-known casino operator in New Zealand, SkyCity Entertainment, has restarted operations in most of its establishments as the country was declared "Covid-19-free" by the government. However, the company warns that layoffs might still take place even with the easing of restrictions. What's in store for the industry?
Back to Normal - Almost
On May 14, SkyCity Casinos in New Zealand reopened only recently since the country's government downgraded the Covid-19 alert level to 1. This means that the island nation has no active cases of the virus, with the last patient being a 50-year-old woman from Auckland who has not shown any symptoms for more than 48 hours.
The authorities have relaxed restrictions and allowed the public to return to their normal lives. Now, public and private events are back on, and businesses such as retail, transport, and the entertainment sector, including casinos, are starting to reopen. 75% of the in-country SkyCity properties can now operate at full capacity.
Casinos in Auckland, Hamilton, and Queenstown are already running at full capacity. However, the SkyCity Wharf Casino in Queenstown and the Adelaide Casino in South Australia remain closed. International travel is still heavily restricted, but the management is optimistic about the ongoing crisis being over. As quoted in a press release:
"We are thrilled to welcome all SkyCity customers back to our properties. It's great to be fully functional once more, and we're excited to see the public enjoy everything we offer again."– Graeme Stephens, CEO, SkyCity Entertainment Group
Layoffs Possible
SkyCity reported positive growth in its business since May when it reopened, but it also mentioned potential layoffs. The company is planning to focus more on its domestic market due to the uncertainty surrounding international tourism.
Before the government announced alert level 1, only members of the Premier Rewards program were allowed to access the reopened casinos. It's uncertain if regular operations will be possible without layoffs, depending on the turnover. If casino operations stabilize, the chances of avoiding layoffs are high, as domestic gambling venues in Auckland and Hamilton have recovered well since May. The average hotel occupancy rate has been around 32% since reopening, and most of the gaming comes from slot machines. Popular table games such as roulette, baccarat, poker, and blackjack are still unavailable due to virus regulations or reduced hygiene measures.
The non-gambling aspects, such as restaurants and bars, need much longer to recover, as they were preferred by international customers. Meanwhile, weekend hotel room occupancy rates have jumped up to 90% because of special offers. Although restaurant and bar revenues are growing slowly, they're still significantly lower than pre-Covid-19 crisis levels.
Despite the low alert level, SkyCity is keen on maintaining robust infection control. CEO Stephens stated that the health and safety measures put in place to combat Covid-19 will continue in a reduced form to minimize risks. The company is working on a corresponding concept and will continue to prioritize employee and guest protection. SkyCity also backs the implementation of the government's Covid-19 tracker app.
The racing industry in New Zealand, which has been severely affected by the pandemic, may also benefit from a Covid-free New Zealand. Racing events were re-initiated in May, and thoroughbred races are set to begin on July 3. The racing industry's regulatory body, RITA (Racing Industry Transitional Authority), has experienced a significant decline in activities due to the lockdown.
Revenues have dropped almost 50% below original projections, and customer numbers are down 35%. The state-owned betting operator TAB laid off 30% of its workforce. 230 permanent and part-time positions were cut, and four betting offices were shuttered. The government attempted to revive New Zealand's racing industry with legislation in April 2019.
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Source: www.onlinecasinosdeutschland.com
