Macau casino operators jump 13 pct. shares

MACAU, Macao: After Macao's chief executive Ho Iat Seng announced this week that China would resume its e-visa scheme for mainland travelers and permit group tours, shares in the city's casino operators jumped by 13 percent.

Shares in Sands China increased by more than 13 percent, Wynn Macau increased by 7 percent, Galaxy Entertainment up 10 percent, and SJM and MGM China increased by 8 percent each.

Ho said that the Chinese special administrative region, which is the only place in China where it is legal to gamble in casinos, will open to mainland tour groups in November for the first time in almost three years.

Since 2020, Macau has enforced strict COVID 19 pandemic restrictions that severely impact the casino industry. About 90 percent of the city's total casino revenues are attributed to gambling from mainland China.

While it is hard to quantify the immediate benefit, we believe that the resumption of e-visas and group tours should help alleviate friction for a Macau trip, as well as signal to many that it is okay to visit. As quoted by Reuters, DS Kim, analyst at JP Morgan in Hong Kong, said that the company was finally able to talk about a return to normalcy.

Since the Pandemic, the movement between Macao and the mainland border has remained low despite being open for two years due to a lack of e-visas, which were used by Chinese gamblers to make instant bookings.

Chinese tourists wishing to visit Macao must book a visa appointment and wait for a week-long approval process.

The tour groups will come from five provinces including Fujian, Jiangsu, Guangdong, Shanghai, Zhejiang, Jiangsu and Guangdong.