Macau: Macau casino stocks surged the most since March after the city announced its plan to resume accepting group tours from mainland China as soon as November, giving a boost to its tourism-dependent economy which has been hammered by a slump in visitors since the outbreak of the pandemic.
A Bloomberg Intelligence gauge of the city’s six licensed casino operators gained as much as 8% yesterday.
SJM Holdings Ltd and Sands China Ltd both climbed more than 12%.
The first groups will be from Shanghai and four Chinese provinces including Guangdong, the Macau government said at a press conference Saturday, after receiving the go-ahead from the Chinese authorities.
China will also resume issuing eVisa for travellers to Macau, making it easier for travellers to obtain permits to enter the city.
But the Chinese enclave will tighten travel restrictions again if Covid outbreaks resurface, it said. The once bustling gambling hub has taken a heavy blow from China’s Covid Zero policy.
Gaming revenue fell by about half in August from a year earlier as fewer Chinese travellers were able to enter the former Portuguese colony.
The Macau government aims to double the number of daily visitors to 40,000. The plunge in tourism hit other businesses in the city, such as suppliers of slot machines, baccarat table systems and other casino equipment.
They moved out to more welcoming markets such as Singapore and the Philippines. — Bloomberg
