The big news this week has been what the affect of the new visa restrictions may have on Macau ’s future. We believe the affect will be huge as every day about +/- 250,000 people cross the Zhuhai/Macau borders. The new restrictions under China’s current policy are not surprising as the cash outflows must be quite significant. Obviously these measures are also implemented to curb gambling by officials and illegal labor in Macau.
Just let have a look at a some of the new restrictions here:
1-There will be a restriction on the number of times that visitors are allowed to visit Macau.
2-The application period is now 10 days instead of 6 the days previously.
3-Permit for Business travel have been suspended indefinitely.
4-Urgent applications have been canceled with immediate effect.
5-Guangdong Residents are now only allowed to visit Macau on a single entry permit instead the previous double entry permit.
6-There will be breaks inserted in between the visits of two months.
7-They may restrict permits altogether.
There still no official announcements on the confirmed measures that currently are undertaken.
The affect that this will have on Macau will be significant, and the impact should be seen in a few months time around the time when the is expected to open it’s doors.
The stock markets already reacted last Friday as shares of Melco PBL, Las Vegas Sands and Wynn Resorts dropped heavenly on these new measures and concerns!
Add to this the fact that the affect this will have on the VIP rooms income, SJM has already said that its VIP business has dropped by 10 to 15%, the monetary impact could be quite huge!
The onus now on the casino operators and gaming authorities, to convince the Guangdong government, that they can control the gambling addictions and wastage. They need to introduce responsible gaming and gambling addiction regulations and organizations to support it.
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