Shares in Macau casino operators rallied yesterday after Chinese authorities introduced new travel permits to boost the special administrative region’s tourism industry.
Melco International Development Ltd. jumped 14% in Hong Kong trading, while Sands China Ltd. rose 7.1% and Galaxy Entertainment Group Ltd. climbed 4.8%. A Bloomberg gauge of the six Macau gaming operators gained 3.7%.
Starting May 6, mainland Chinese citizens can apply for a multiple-entry permit allowing visits to Macau for purposes such as attending exhibitions or seeking medical care.
The permit, announced Sunday by China’s National Immigration Administration, allows year-round entry instead of the current quota system.
The NIA will implement several policies to ease residents’ overseas trips, including the extension of the period of stay from seven to 14 days for holders of an exit endorsement for business travel to Hong Kong and the expansion of application of the exit endorsement for talents to Beijing and Shanghai.
The easing comes as Macau’s gaming revenue recovery from the pandemic loses momentum, reaching just 75% of 2019 levels in March.
New permits are expected to boost visitor arrivals vital to the territory’s casinos, which previously relied on high rollers before Beijing’s crackdown.
“The mainland is fully supportive of Macau’s economy and travel and leisure industry,” said analysts of JPMorgan Chase & Co. in a note, adding the support is in contrast to China’s increasing scrutiny on cross-border or illegal gambling in other parts of Asia.
Those joining guided Macau-Hengqin Island tours will receive special permits for multiple entries between the two places within seven days if traveling together, according to the announcement.
The measures aim to support Macau’s struggling economy as Beijing clamps down on illegal offshore gambling elsewhere in the region. Staff Reporter
