According to the third-quarter report from Melco Resorts Finance Ltd., which was released on Tuesday, the economic volatility brought on by Covid-19 outbreaks is anticipated to continue at least through the end of 2022.

According to Melco, travel bans or restrictions, visa restrictions, and quarantine procedures will significantly affect the year’s profitability.

Despite covid restrictions, Melco Resorts and Entertainment Ltd has experienced a considerable recovery in the Manila casino market. City of Dreams Manila had returned to full operational capacity by the first quarter of this year, according to Melco Resorts chairman Lawrence Ho Yau Lung.

With growing signs that China may reopen its economy in 2023, investors are steadily returning to the Macau casino industry despite Covid-19 uncertainties.

Following the parliamentary meeting, which typically takes place in early March, economists predict that the reopening will start in Q2 of 2023. The government is reportedly easing COVID quarantine restrictions over time and facilitating domestic travel between various parts of the nation.

According to Bloomberg, authorities will prioritize increasing medical resources and ensuring that vaccines are given to vulnerable people. The public’s concerns about contracting COVID are anticipated to be reduced by educational campaigns.

Lu Ting, an economist at Nomura, predicts that social unrest and weak economic data would force Beijing to begin a meaningful opening as early as March 2023, though he cautioned that authorities may still have second thoughts in the face of an increase in the number of COVID cases.

Early Wednesday trading saw a 5.97% increase in Melco Resorts & Entertainment Limited, a 2.33% increase in Las Vegas Sands, and a 1.88% increase in Wynn Resorts. The three casino stocks are approaching their third straight day of gains.