It seems that the stricter transit visa rules that were imposed last year will continue to affect Macau’s gambling industry in 2015 as well. Japanese financial holding company Nomura Holdings, Inc. pointed out in a note that was released earlier today that some well-known high rollers have been missing from the city’s gambling scene for several months now.
Under the current transit visa rules, arrivals from Mainland China, no matter whether they are players or junket agents, need to provide proof that they have gone to a third-party destination. Before July 1, 2014, travellers were required to show their third-party visas, which were issued by particular travel agencies. This was absolutely enough so as to be allowed to enter and re-enter Macau.
Stella Xing, Wendy Liu, and Harry Curtis, analysts at Nomura, stated in their note from earlier today that they could not possibly think of any option that would adequately replace the so-called transit visa. They pointed to the fact that currently, it is almost impossible to get a business visa to the world’s most popular gambling hub.
According to resources, cited by Japan-based investment bank Daiwa Securities Group Inc., people from Mainland China who visit Macau by means of a 5-day transit visa without going to a third-party destination will be monitored more closely. In addition, they will be allowed to enter the city only for a day, provided that they try to go there by means of the same method within the next 60 days after their previous visit.
Daiwa Securities’ analysts Jamie Soo and Adrian Chan confirmed after their recent trip to the administrative region that the Mainland China-Macau checkpoints are now scrutinized more thoroughly.
As mentioned above, the anti-corruption campaign in China and the stricter visa rules have resulted in key high rollers staying away from the gambling Mecca.
According to Nomura’s note, players even refrain from placing telephone bets.
As several prominent gaming experts from Daiwa Securities stated, Macau’s revenue from gambling activities might fall between 14% and 20% in January, as compared to the figures posted a year ago. They estimated that an average daily turnover of $98.8 million has been generated on each of the first eleven days of the month.
Cameron McKnight, gaming analyst at Wells Fargo Securities, LLC, predicted that the gaming revenue in Macau might fall between 16% and 19%.
David Bain of the US-based company Sterne Agee shared that he expects a slump between 15% and 19%. However, he pointed out that the launch of new venues in Macau will certainly bolster local economy.
As previously reported, Melco Crown’s multimillion project City of Dreams is expected to open doors for visitors sometime in mid-2015.
