Macau casino operators’ shares surged yesterday after China announced an expansion of its individual travel visa scheme to include eight additional mainland cities, a move that is expected to drive more high-end and mid-market visitors to the gambling hub.
Wynn Macau’s Hong Kong-listed shares rose 5% to HKD8.39, MGM China’s shares gained 3.4% to HKD15.08, and SJM Holdings’ shares climbed 5.2% to HKD3.05.
In a statement, China’s National Immigration Administration said residents in eight mainland cities including provincial capital cities of Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan and Urumqi, can now apply for individual visit scheme (IVS) or group travel endorsement to visit Hong Kong or Macau.
The new measures start May 27.
The expansion of the IVS is expected to boost visits of mid-market and higher-end travelers to Macau, according to Vitaly Umansky, a senior analyst at Seaport Research Partners.
However, he noted that increased air capacity from those eight cities to Hong Kong, Guangdong, Zhuhai, and Macau airports would be crucial to have a material impact on visits.
Echoing the same sentiment, a UBS report highlighted the positive impact of this policy on Macau, as it is expected to increase the number of mainland tourists visiting the region.
This move also demonstrates the Central Government’s ongoing support for the growth of Macau’s tourism sector.
However, due to the limited number of direct flights from the new applicant cities to Hong Kong and Macau, which make up only 1% of all IVS-eligible cities, the overall contribution to Macau’s tourism industry may be limited.
PSP ready for passenger movement surge
Deputy chief of the Immigration Department of the Public Security Police, Ho Chu Wa, has said that from January to April this year the total number of entries and exits at various ports was approximately 69 million, with a daily average of about 570,000, a year-on-year increase of 34.5%.
During the period, the total number of inbound passengers exceeded 11 million, with a daily average of approximately 95,000. This is a year-on-year increase of 58.6%, and 83% of 2019 levels, according to a TDM report.
He said there are currently 560 self-service gates, 330 manual passages, and 61 lanes in each port.
Therefore, amid the expected increase of movement at the city’s ports, he is confident that it can cope with the continued increase in passenger customs clearance. Staff reporter
