• 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

Transit visa price hike minimal impact on Macau: analysts

Feb 23, 2018 Newsdesk Latest News, Macau, Top of the deck  


Transit visa price hike minimal impact on Macau: analysts

A recent six-fold hike in the fee charged by Zhuhai-based travel agencies helping mainland Chinese obtain a transit visa to Macau will have “minimal impact” on the city’s tourist arrivals and gross gaming revenue (GGR), say analysts covering the city’s gaming industry.

Starting February 18, travel agencies in neighbouring Zhuhai that help mainland visitors get a visa to transit in Macau upped their fees from CNY50 (US$7.9) to CNY340, local Portuguese-language newspaper Ponto Final reported on Wednesday.

In 2014, Macau reduced to five days, from seven, the permitted stay for mainland Chinese passport holders who transit in the city. The local authorities said at the time that the move was aimed at deterring some mainlanders from deliberately circumventing the existing entry requirements to Macau.

It had been reported previously that some travel agencies would sell overseas trips that would be afterwards cancelled once the tourist entered Macau.

In a note released on Friday, Praveen Choudhary, analyst at investment bank Morgan Stanley, estimates that “about 15 to 20 percent” of all Chinese visitors enter Macau using a transit visa. There are no official numbers available for this type of document.

“The new fees of US$50 is high but not significant for average gamblers theoretical loss of US$4,000 (average mass drop per Chinese visitor),” said Mr Choudhary.

These visas are “sometimes used by more frequent visitors who may have used up their IVS [Individual Visa Scheme] annual quota,” he added.

The IVS system allows mainland Chinese living in eligible areas of the mainland to apply for a travel permit to visit Macau individually instead of having to be part of a tour group. The number of mainland cities under the IVS currently stands at 49.

There are no limits to the number of transit visas one can apply, unlike the IVS, which can only be used once every two or three months, depending on the visitor’s province of origin.

In a note also on Friday, brokerage JP Morgan Securities (Asia Pacific) Ltd said transit visas are “mainly used by hard-core gamblers (who frequent Macau more than five to six times a year) or junket agents who don’t have [a] work permit in Macau”.

Analysts DS Kim and Sean Zhuang said the hike “would do little if any to deter any gamblers,” while adding that the new fee is still “smaller than a single hand at the baccarat table”.

Both JP Morgan and Morgan Stanley stressed that the increase only covers applications made in the Gongbei and Hengqin land borders, while passengers arriving in Macau by ferry or by air are not affected.

“We also don’t think this is government policy to restrict visitation to Macau,” stated Morgan Stanley’s Mr Choudhary in Friday’s memo. “The bigger impact is for genuine overseas tourists and gamblers who may have to fly through Hong Kong instead,” he added.


  • tweet
Related articles
  • Gaming recovery helps Melco Resorts EBITDA break even 4Q
    Gaming recovery helps Melco Resorts...

    Feb 26, 2021  

  • SJM posts US$390mln 2020 loss, Cotai scheme in 1H
    SJM posts US$390mln 2020 loss, Cotai...

    Feb 23, 2021  

More news
  • Fitch says LVS Nevada sale slight negative, Moody’s keener
    Fitch says LVS Nevada sale slight...

    Mar 05, 2021  

  • Travel ban on casino hub Sihanoukville: reports
    Travel ban on casino hub Sihanoukville:...

    Mar 05, 2021  


Latest News

Fitch says LVS Nevada sale slight negative, Moody’s keener

Fitch says LVS Nevada sale slight negative, Moody’s keener

Mar 05, 2021  

Despite United States-based casino group Las Vegas Sands Corp (LVS) being in line to generate US$6.25 billion from the sale of its Las Vegas, Nevada assets, Fitch Ratings Inc said in a Thursday memo...
Read More
Travel ban on casino hub Sihanoukville: reports

Travel ban on casino hub Sihanoukville: reports

Mar 05, 2021  

Melco says City of Dreams in Cyprus open summer 2022

Melco says City of Dreams in Cyprus open summer 2022

Mar 05, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“Prolonged closure of operations could derail earnings recovery and weigh on NagaCorp’s credit quality"

Junling Tan, Yu Sheng Tay and Vikas Halan

Analysts at credit rating agency Moody’s Investors Service



Most Popular

  • Lim Kok Thay, GEN Singapore execs in US$1.3mln stock awardLim Kok Thay, GEN Singapore execs in US$1.3mln stock award March 2, 2021
  • Las Vegas Sands to sell off Nevada assets for US$6.25blnLas Vegas Sands to sell off Nevada assets for US$6.25bln March 3, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Pansy Ho again cuts stake in MGM Resorts, for US$57mlnPansy Ho again cuts stake in MGM Resorts, for US$57mln March 4, 2021
  • LVS plans to keep U.S. base, stock listing: spokesmanLVS plans to keep U.S. base, stock listing: spokesman March 4, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us