• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Small steps fortnightly key to Macau rebound: Jefferies

Jul 31, 2020 Newsdesk Latest News, Macau, Top of the deck  


Small steps fortnightly key to Macau rebound: Jefferies

Investors are now understanding the return of meaningful tourism volume in the Macau market is likely to involve “small steps every two weeks” on the part of the Chinese authorities – in terms of relaxation of mainland travel policy relative to Macau – said a Thursday memo from Jefferies Hong Kong Ltd.

Possible clues had been provided by a phase of easing that began on July 15, via a relaxation of quarantine conditions for travel from Macau to nine cities in the neighbouring Chinese mainland province of Guangdong, which was then extended to the whole of the province a fortnight later.

“The Macau recovery remains dependent on IVS [Individual Visit Scheme], but we expect this to be a gradual and phased reissuance on an individual Chinese city-by-city within each province,” said Hong Kong-based analyst Andrew Lee.

He added that Guangdong “is key”, given the province accounted for “46 percent and 55 percent” respectively of 2019 and first-half 2020 “mainland Chinese visitors to Macau”, with “73 percent and 69 percent” respectively, of “2019 and first-half 2020 Guangdong visitors using IVS”.

Hubert Wang, president and chief operating officer of Macau casino operator MGM China Holdings Ltd, said on the second-quarter earnings call of the parent MGM Resorts International on Thursday, he thought IVS resumption could come in “mid-September” or even “a little bit earlier”, possibly starting with Guangdong province.

The executive added that a return from July 15 of non-tourism exit visas from Guangdong to Macau – including for business travel – which had been retrospectively reported on Thursday, would be “helpful to our business”.

Nonetheless, such travellers will still need to provide a timely test certificate showing freedom from Covid-19 infection.

Mr Wang’s boss, MGM Resorts’ chairman Bill Hornbuckle, said on the group’s earnings call that recent moves – including the easing of quarantine conditions for travel from Macau to Guangdong – were “initial steps in an encouraging direction”.

But he noted: “Hong Kong borders remain shut and the IVS and tour visa programmes have not yet restarted, which we believe is necessary for a meaningful recovery.”

The resumption of the IVS scheme has been widely touted as a key element in a rebound in Macau casino gross gaming revenue, which was down 77.4 percent year-on-year to June 30, according to Macau government data.

IVS travellers accounted for 46.8 percent of the aggregate mainland visitor arrivals to Macau in 2019, “and possibly a higher proportion of gaming revenues” at the city’s casinos for that period, wrote JP Morgan Securities (Asia Pacific) Ltd in a January memo at the time the IVS programme was suspended.


  • tweet
Related articles
  • Cotai expansion to aid Macau EBITDA to 2019 level: CICC
    Cotai expansion to aid Macau EBITDA to...

    Jan 26, 2021  

  • Crane affirms 1Q dividend, reports 4Q 2020 profit
    Crane affirms 1Q dividend, reports 4Q...

    Jan 26, 2021  

More news
  • Nüwa CoD Macau reopening delayed beyond Feb 8
    Nüwa CoD Macau reopening delayed...

    Jan 26, 2021  

  • TCS John Huxley installs Blaze products at Okada Manila
    TCS John Huxley installs Blaze...

    Jan 26, 2021  


Latest News

Cotai expansion to aid Macau EBITDA to 2019 level: CICC

Cotai expansion to aid Macau EBITDA to 2019 level: CICC

Jan 26, 2021  

Macau casino-sector earnings before interest, taxation, depreciation and amortisation (EBITDA) could return to 2019 levels “as soon as” the fourth quarter of this year, “partly helped by...
Read More
Nüwa CoD Macau reopening delayed beyond Feb 8

Nüwa CoD Macau reopening delayed beyond Feb 8

Jan 26, 2021  

Crane affirms 1Q dividend, reports 4Q 2020 profit

Crane affirms 1Q dividend, reports 4Q 2020 profit

Jan 26, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The travel impediments [in mainland China] will lead to reduced visitation into Macau for the next few weeks at least, with Chinese New Year visitation being impacted"

Vitaly Umansky, Tianjiao Yu and Kelsey Zhu

Analysts at Sanford C. Bernstein Ltd



Most Popular

  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
  • Londoner Macao first phase launch Feb 8 says Sands ChinaLondoner Macao first phase launch Feb 8 says Sands China January 21, 2021
  • Macau Covid-19 case no bar to mainland travel tiesMacau Covid-19 case no bar to mainland travel ties January 22, 2021
  • Digital yuan eventually for Macau mass bets mulls BernsteinDigital yuan eventually for Macau mass bets mulls Bernstein January 22, 2021
  • Yokohama announces RFP timeline for casino bidYokohama announces RFP timeline for casino bid January 22, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us