It was announced a few days ago that Chinese citizens would be allowed to stay in Macau up to 7 days instead of just 5. The new transit visa policy became effective on Wednesday, July 1. However, prominent gambling experts believe that it would have only a limited effect on the issues that are currently affecting the administrative region’s gaming industry.
The measure, which is intended to boost local tourism, came at a time when Macau’s casino revenue posted a considerable decline for a 13th consecutive month. The Gaming Inspection and Coordination Bureau, known to be the local gambling regulator, announced that the city’s six casino operators generated overall revenue of MOP17.4 billion in June, down 36.2% as compared to what was posted for the same month a year ago.
Ben Lee, Managing Partner at IGamiX Management and Consulting, commented that Beijing has finally decided that due measures need to be taken in order for Macau to have its economy stabilized.
Glenn McCartney, Assistant Professor in Gaming and Hospitality Management at the University of Macau, said that the relaxed transit visa rules could be seen as “positive sentiment towards Macau.” Yet, the gambling observer pointed out that the new policy would not be enough to fix all of the city’s casino industry major issues resulting from the considerable economic downturn.
Mr. McCartney pointed out that those issues need to be addressed in order for the city to be able to move forward and diversify its economy. According to the expert, the government needs to find out how private and public policies could work together. Commenting on Macau’s current condition, he said that its economy is “very fragmented.” In other words, the city could not be defined as a world-class gaming and tourism destination and officials need to create a believable brand in order to fix this.
Following the announcement about the relaxed transit visa rules, the shares of 4 of Macau’s 5 gambling operators listed on the Hong Kong Stock Exchange marked their first major climb since October 2011. Sands China, Wynn Macau, and the Galaxy Entertainment Group rose between 12% and 14%. MGM China increased 16%.
Macau had the maximum stay reduced twice for the past 7 years. In 2008, it was cut from 14 days to just 7, as the Chinese government wanted to prevent its citizens from abusing the transit visa rules and use their visas to remain in Macau and not travel to other destinations. Last year, the maximum stay was reduced to 5 days.
Commenting on the latest announcement, Macau’s Secretary for Economy and Finance, Lionel Leong Vai-tac, said that the newly introduced changes are part of the Mainland China government’s strategy to boost the city economy. He also pointed out that Macau’s officials are content with the new policy but it is too early to predict its effects.
