Macau Casino Shares Soar As China Tour Operators Return
There was a 13% rise in Macau casino operator shares on Monday after China announced that they would resume an e-visa scheme and permit group tours for mainland travelers. This news could likely boost footfall to one of the world’s biggest gambling hubs, which would be great for both locals who want more visitors as well as investors!
The citizens of China’s special administrative region are about to get a chance they’ve long awaited. In November, admitted tours will be launched and this could not come soon enough as it has been almost three years since anyone was able to enter the Macau casinos. This was announced last Saturday by the city’s chief executive Ho lat Seng.
Macau, a former Portuguese colony that borders mainland China has implemented stringent COVID-19 pandemic restrictions with tight border controls since 2020. The impact on the casino industry was heavy considering it is one of its major revenue sources.
New regulations
The news of new regulations for mainland gamblers came earlier than expected, according to analysts who had anticipated such measures to be introduced only early next year. The vast majority of revenue (approximately 90%) at Macau Casinos comes from mainland gamblers.
DS Kim, an analyst at JP Morgan in Hong Kong said:
“Although it’s tough to quantify the immediate benefit, we believe the resumption of e-visas and group tours should alleviate friction for a Macau trip, as well as signal to many that it’s OK to visit. Finally we feel we can talk about a return to normalcy.”
The market in China is on an upswing with shares of Sands China Rose soaring more than 13% and Wynn Macau climbing 7%. Galaxy Entertainment advanced 10%, while SJM and MGM China shares jumped 8 percent each.
Entering Macau
Macau’s border with mainland China has been open for two years now, but traffic remains sluggish because of a lack of e-visas which were readily used by Chinese gamblers prior to the pandemic.
Currently, for entering Macau, they need to book an appointment and wait a week before being approved by authorities. In 2019 the individual visa scheme accounts for about 50 percent of Chinese visitors to Macau while tour groups account approximately 25%.
The first phase of tours will resume from five regions – Guangdong, Shanghai, Zhejiang, Jiangsu and Fujian. Before the outbreak of the Corona crisis, these represent almost 60% of the mainland visits to Macau in 2019!
Macau Casinos
Macau has grown to be bigger than Vegas. That’s what they say about Macau these days! In this former Portuguese colony, more money is gambled than anywhere else in the world. Macau has over 40 casinos to choose from. Even the biggest casinos in the world are here to be found.
Similar to Las Vegas, Macau has the gondolas and canals at the Venetian Macau and the world’s best water show at the City of Dreams. Even its own version of the Vegas Strip – the Cotai Strip – can be found in Macau.
Category: Gambling industry