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Macau casino operators jump as China allows tour groups after nearly 3 years According to Reuters


© Reuters. FILE PHOTO: A woman walks past a Bank of China branch next to the Grand Lisboa (R) hotel and casino in Macau, China December 21, 2019. REUTERS / Jason Lee

HONG KONG (Reuters) – Share among casino operators in Macau jumped to 13% on Monday after city leaders said China would resume a plan to issue e-visas for university visitors. continent and allow group tours, which could spur the entry of the world’s largest gambling hub.

China’s special administrative region, the only place in the country that allows people to gamble in casinos legally, will open its doors to mainland tour groups for the first time in nearly three years in November, chief executive officer Ho Iat Seng city said on Saturday.

Macau, a former Portuguese colony, has implemented strict COVID-19 pandemic restrictions with tight border controls since 2020, resulting in a major impact on the industry. casino in this country.

The announcement came earlier than expected, analysts said, who had predicted such measures would only be in place as early as next year. Mainland gamblers account for about 90% of all casino revenue.

“While it is difficult to quantify the immediate benefits, we believe the resumption of e-visas and group tours will reduce friction for trip to Macau, as well as signaling to many people that you can visit.” Morgan in Hong Kong.

“Ultimately, we feel we can talk about getting back to normal.”

Sands China (OTC:) increased more than 13%, Wynn Macau (OTC:) was up 7%, Galaxy Entertainment was up 10%, while shares of SJM and China MGM (OTC:) were up 8% each.

While the border between Macau and the mainland has been open for two years, traffic is still sluggish due to a lack of e-visas, which Chinese gamblers readily used before the pandemic to make instant bookings.

Currently, Chinese tourists to Macau need to book a visa appointment, followed by a week-long review process. The individual visa program accounted for about 50% of Chinese visitors to Macau in 2019 while tour groups accounted for about 25% of visits.

In the first phase, the resumption of tour groups will come from five provinces – Guangdong, Shanghai, Zhejiang, Jiangsu and Fujian – representing nearly 60% of mainland visits to Macau in 2019. .

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