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China border restrictions cut visitation at Donaco’s Vietnam casino by 75%

Newsdesk by Newsdesk
Thu 13 Feb 2020 at 05:27
New investor requests two seats on new-look Donaco board

Donaco’s Aristo International Hotel in Vietnam

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Australian-listed Donaco International Limited says its Vietnam casino Aristo International Hotel, which borders China’s Yunnan Province, has been heavily impacted by the Coronavirus with visitation down 75% in February.

Noting that the nearby border crossing at Lao Cai is tightly restricted, with crossing allowed only for visitors with “urgent” or “official” business reasons, Donaco revealed on Wednesday that visitor numbers through the first 11 days of the month have fallen from 5,510 players in the same period last year to just 1,374 players, or 125 per day, since 1 February 2020.

As a result, rolling chip turnover has declined by 82% from RMB317 million to RMB58 million.

“Currently there is no time frame on the partial closure of the border crossing, which is likely to depend on the success of the broader efforts being undertaken within China and around the world to contain the virus,” Donaco said in a filing.

“In response to the slowdown in the business, Aristo management have arranged unpaid leave for many staff members in February, and have also reduced total headcount, as well as deferring various capital expenditure projects.”

The company said that its Cambodian casino, Star Vegas in Poipet, has suffered no direct impact from the Coronavirus.

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Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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