The Star Sydney has announced it will close its operations due to a new outbreak of COVID-19 as the New South Wales government implements new lockdown measures.
Sydney Faces a New Lockdown Due to Growing COVID-19 Cases
The Star Sydney has closed almost all of its operations for the next two weeks, at least. The New South Wales (NSW) government has introduced the new restriction measures on Friday, announcing a growing outbreak of COVID-19. Allegedly, the latest outbreak originated from a limousine driver transporting international flight crew to their hotel. The cases rose to 65 by Friday, including 22 new ones from the previous 24 hours.
On Friday, NSW Premier Gladys Berejiklian announced that four local areas, including the City of Sydney, would go into lockdown for seven days as of 11:59 PM Friday. After that, the government extended the restrictions for another week and to all of Greater Sydney.
The Star Sydney Ceases All Operations
In the afternoon on Friday, Star Entertainment Group announced that The Star Sydney would “cease operations, apart from limited hotel facilities, from this time, as a result of the orders.” It would be the fourth time The Star Sydney suspends its operations or implements capacity restrictions since the beginning of the pandemic.
The company’s employees will continue to receive payments for the next seven days. In June, the company also announced that it implemented a new family-friendly parental leave policy under which employees would receive paid parental leave for up to 18-weeks.
Star Entertainment Group Reported Nearly 30% Drop In Revenue
In February, The Star Entertainment Group reported a nearly 30% drop in revenue due to restrictions and the shutdown of its properties. The group’s financial year 2021 ended on December 31, 2020. The Star posted its revenue of nearly $541 million, reporting 29.6% less than the previous year. The group said that the slum was primarily due to casino closures and COVID-19 restrictions, including limited capacity, distancing, and shutting down borders. The operator also reported a significant drop in earnings in Sydney due to restrictions.
The Star Entertainment Group also shared its outlook for the second half of its 2021 year, stating that the restrictions would continue to impact its revenue. The company said it is prepared to continue to manage operating costs but warned that future restrictions could impact its performance.