Visa expansion policy helps Macau's gaming industry

Macau Casino Stocks Climb After China Adds Cities to Individual Visit Scheme Program

Posted on: May 13, 2024, Devin O'Connor
www.casino.org/news/macau-casino-stocks-climb-after-china-adds-cities-ivs/

Shares of Macau casino stocks are up during early trading on Monday after China announced the inclusion of eight additional cities to its Individual Visit Scheme (IVS) program.



People in eight additional cities in China will soon qualify for Individual Visit Scheme visas to venture to Macau. The increase to the IVS program should help Macau’s economy, as its casinos undergo operational changes. (Image: Visa Traveler)

The State Council of the People’s Republic of China announced on Saturday that eight more cities qualify for IVS, which allows individuals on the mainland to easily travel to Macau and Hong Kong. IVS excludes the need to apply for business visas or participate in a group tour to access the two Special Administrative Regions (SARs).

Ho Iat Seng, the chief official in Macau, celebrated the development and said it will bring more visitors to the region, the only place under Chinese control where casinos are allowed.

The Macau SAR Government will endeavor to promote the hosting of more international events, enriching the content of MICE (Meetings, Incentives, Conventions, and Exhibitions), as well as cultural and sports activities, to create a diversified travel experience for visitors,” Ho declared.

Beginning May 27, residents from Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi will be able to participate in the IVS program administered by China’s Exit and Entry Administration.

Shares of the US-traded casino stocks operating in Macau jumped on the IVS news. As of 11 am EST, Las Vegas Sands was up 1%, MGM Resorts was up 1.3%, Wynn Resorts was up 1.5%, and Melco Resorts was up over 4%.

China Continues Supporting Macau

The added cities to the IVS program, gaming analysts say, demonstrate China’s ongoing commitment to supporting Macau. It also reveals there isn’t a strong opposition to casino gaming among Beijing leaders. Casinos accounted for 77% of Macau’s tax revenue last year.

The more near-term impact from the pronouncements should be a boost to sentiment as the policy measures are a clear indication from the Chinese government about its continued support for Macau and no negative association with the gaming industry,” said Seaport Research Partners gaming analyst Vitaly Umansky.

Initiated in 2003 to increase tourism to Macau and Hong Kong, IVS now involves 59 cities under China’s control.

The increase to the eligible cities comes as Hong Kong tries to revive its economy post-COVID, which saw many businesses and expats flee the region amid national lockdowns. Macau is also in a changing economic environment after forcing out most VIP junket groups that had catered to mainland high rollers.

The six casino companies are investing nearly $18 billion in nongaming projects at their casino resorts. The nongaming pledge came in late 2022 in exchange for 10-year extensions of their gaming licenses.

IVS Explained

IVS allows people in the 59 qualifying cities to apply electronically for visas to travel to Macau or Hong Kong.

The travel permits are valid for up to a year and allow a person to travel to the named SAR for up to seven days. There are currently no limitations on the number of IVS endorsements a traveler can receive in a given year.

In January, the Macau SAR Government said it expected 33 million people to visit the casino enclave this year, or about 84% of the city’s 2019 traveler count. With eight more cities qualifying for IVS, that forecast could be raised.

In an article related to Golden Week visitation numbers, I think I read international tourists in Macau stood in the range of 10-15%.

It seems your interests align with Xi's... 

CE CALLS FOR WORK ON INTERNATIONAL METROPOLIS FOLLOWING XIA’S VISIT

- MONDAY, MAY 20, 2024 - 11 HOURS AGO NO COMMENTS 1,084 VIEWS
macaudailytimes.com.mo/ce-calls-for-work-on-international-metropolis-following-xias-visit.html

Director Xia Baolong visits the Macao East Asian Games Dome and the Athlete Training and Development Centre

Chief Executive Ho Iat Seng has called on Macau’s different sectors to collaborate to polish the region as a golden business card and transform it into an international metropolis.

This comes as Beijing’s top official for Hong Kong and Macau affairs Xia Baolong’s week-long visit to Macau concluded.

The call was one of the six guidelines Xia left to the SAR Government during his visit, which the Chief Executive confirmed during the press conference to summarize the visit of the director of the Office for Macau and Hong Kong Affairs.

According to Ho, the government will lead the administrative team, and join with all sectors of society to “make better use of Macau’s six advantages as praised by Xia and polish the golden business card of Macau as an international metropolis.”

The six advantages, pointed out by Beijing’s top official for SARs affairs are: “the institutional advantage of the ‘One country, two systems’ principle; sufficient development space; a highly internationalized business environment; a strong economic foundation; a unique blend of Chinese and Western cultural characteristics; and a traditionalist passion of patriotism and loyalty.”

Ho said the new direction of the SAR’s development includes both culture and the Portuguese language, adding that the direction echoes the construction of this international metropolis.

The city’s leader highlighted the importance that the SAR has always given to the Portuguese language and culture.

During his seven-day visit, Xia engaged in a series of activities aimed at gaining a comprehensive understanding of Macau’s social, economic and cultural landscape.

Accompanied by government officials, he met with delegates to the National People’s Congress, members of the Chinese People’s Political Consultative Conference, and representatives from various associations, discussing social affairs in Macau.

One of the highlights of Xia’s visit was his exploration of youth entrepreneurship in Macau, and included inspections of Macau’s large-scale infrastructure projects.

According to a government statement, “Xia also put forward the vivid metaphor that Macau is the apple of the country’s eye.”

“Macau’s important status is self-evident,” the CE remarked.

Yesterday morning on the last stop of his visit, Xia visited the Macao East Asian Games Dome and nearby Athletes Training and Development Centre.

At the Macao East Asian Games Dome, Xia visited the sports venues and exhibition facilities, where he was briefed by the director of the Sports Bureau, Pun Weng Kun, on the various functions of the facilities, their typical usage, and the preparations regarding the Macau venues for the 15th National Games.

Afterwards, he went to the Athletes Training and Development Centre, where he toured the various training facilities and gained insights into the selection system and training methods for elite athletes.

Meanwhile, at the press conference, Ho was asked about the SAR government’s shortcomings, which Xia noted, and said there are several areas for improvement. For example, citizens are dissatisfied with the traffic because roads are narrow and the traffic congested.

“The government is aware of the problem,” said Ho.

It is also said Xia “saw and heard it” in Macau, and some people reported it to him. Therefore, the government will work on the shortcomings, adding that it will do its best in administrative management.

Meanwhile, the Secretary for Transport and Public Works, Raimundo do Rosário, emphasized the importance of the central authorities’ support in establishing a solid foundation for Macau’s status as an international metropolis.

The transport and public works team of the MSAR Government pledged to leverage all advantages provided by the central authorities to enhance Macau’s infrastructure and development.

In addition, Ho said the central government does not intend to hand over the 106 square kilometers of Hengqin to Macau. However, he said Hengqin has been handed over to Macau in terms of concept, use and direction.

When asked about tourism cooperation with neighboring regions, Ho said he will cooperate with Hong Kong, Guangdong Province and other cities in the mainland. Staff Reporter

CE re-run not on agenda

Asked whether he would re-run as the Chief Executive as his term ends this year, Ho said they did not talk about the work related to the replacement of the Chief Executive during Xia’s inspection in the SAR.

According to Ho, Macau is currently carrying out the Chief Executive Election in accordance with the arrangements laid out in the Chief Executive Election Law.

The procedures for registration of members of the election committee were not discussed, so there was no discussion on relevant issues.

MACAU EXPECTS SUMMER SPIKE IN IVS TOURISTS FROM MAINLAND CHINA

- TUESDAY, MAY 28, 2024 - 11 HOURS AGO NO COMMENTS 720 VIEWS
macaudailytimes.com.mo/macau-expects-summer-spike-in-ivs-tourists-from-mainland-china.html

Macau’s travel industry is anticipating a summer spike in Individual Visit Scheme (IVS) tourists from mainland China, according to Andy Wu Keng Kuong, president of the Macau Travel Industry Council.

According to Macao Daily News, Wu cites several factors as contributing to the expected surge, including the recent addition of eight new mainland cities to the IVS scheme.

Effective yesterday, Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi have become active members of the IVS program, which allows mainland Chinese residents to visit Macau individually without the need for a tour group. While Wu acknowledged that these newly eligible cities in the northwest and northeast regions of China are unlikely to be major contributors to Macau’s tourism volume compared to the neighboring Guangdong province, he noted that visitors from the far north are more likely to stay overnight, as they have traveled a greater distance.

The IVS scheme has seen its first update since the pre-pandemic era, with the addition of two large mainland population centers, Qingdao and Xi’an, in a move announced by China’s State Council just three months ago. Data from Macau’s Statistics and Census Service shows that during the first four months of 2024, these two cities contributed a combined 86,000 visitors to Macau, representing 1.07% of the 8.03 million mainland Chinese arrivals.

Of the 8.03 million mainland visitors in the January-April period, nearly 53.1% or 4.26 million utilized IVS permits. The top three mainland markets supplying IVS travelers to Macau were Guangdong province (2.83 million), Shanghai (321,074), and Beijing (189,194).

The IVS-traveler volume for the first four months of 2024 represented a recovery rate of 88.78% compared to the same period in 2019, prior to the COVID-19 pandemic, according to the census service data.

While the newly added IVS cities are not expected to be major contributors to Macau’s tourism in the short term, their inclusion in the scheme, coupled with the continued strength of the traditional IVS markets, suggests a promising summer season for the city’s hospitality and leisure industries, according to Wu. Staff reporter

Looks like Rob gave up on the hair dye... 

And now this...

Expansion of IVS scheme hugely positive for Macau: Goldstein

May 30, 2024 Newsdesk 
www.ggrasia.com/expansion-of-ivs-scheme-hugely-positive-for-macau-goldstein/


Expansion of IVS scheme hugely positive for Macau: Goldstein

China’s decision to increase the number of places where people can apply for Individual Visit Scheme (IVS) exit visas to travel to Macau is “hugely positive” for the city’s gaming industry, says Robert Goldstein (pictured in a file photo), chairman and chief executive of Las Vegas Sands Corp, the parent of Macau casino firm Sands China Ltd.

“I think the most recent government support for the IVS scheme is also hugely positive for Las Vegas Sands and the [Macau] market,” stated the executive during a session on Wednesday at the Bernstein 40th Annual Strategic Decisions Conference Presentation.

From Monday (May 27), eight outer-mainland cities became active members of the IVS scheme: Taiyuan in Shanxi Province; Hohhot in Inner Mongolia Autonomous Region; Harbin in Heilongjiang Province; Lhasa in Tibet Autonomous Region; Lanzhou in Gansu Province; Xining in Qinghai Province; Yinchuan in Ningxia Hui Autonomous Region; and Urumqi in Xinjiang Uygur Autonomous Region.

That was only three months since China’s State Council made its first IVS-list update since pre-pandemic times, designating two mainland large-population centres – Qingdao and Xi’an – as eligible for the scheme.

Mr Goldstein said the industry was “kind of gratified” to see gross gaming revenue (GGR) in Macau “approaching US$30 billion”.

“Macau’s just simply a recovery story based on GGR,” suggested the CEO, adding that the expansion of the IVS scheme could help the market grow further.

He observed: “I think you’re going to see Macau continue to accelerate to US$30 billion or US$32 billion in the near term. It’s a market that is going to continue to grow despite the economic issues that are prevalent today in China, because Macau has proven to be very resilient, and the growth is there in all segments.”

Mass business, smart tables

Macau recorded GGR of MOP183.06 billion (US$22.75 billion) in full-year 2023, following the relaxation of Covid countermeasures in January that year. In the first four months of 2024, market-wide GGR stood at MOP75.87 billion, up 53.7 percent from a year earlier, according to official data.

Mr Goldstein said the premium mass segment “has led the recovery” in Macau since last year. “Obviously, we would like to see more recovery in the base mass; it would be strong for Las Vegas Sands, but also for the market to see more base mass business,” he added.

A recent poll conducted by brokerage CLSA Ltd suggested that Chinese “premium mass” gamblers still like to spend in Macau, with 70 percent of such players in a survey sample saying they plan to make a repeat visit before March 2025.

The CEO also mentioned the growing interest by operators in ‘smart’ casino tables at their respective casinos.

“They’re terrifically advanced products that enable us to do a better job of policing the game for both the customer and our own benefit,” noted the executive.

The Macau authorities have been encouraging use of smart tables as a way for the city’s industry to manage more effectively casino operations. In that regards, several Macau operators have recently flagged plans to use radio frequency identification (RFID) gaming tables.

According to Mr Goldstein, the use of smart tables allows operators to “market better” their products to customers, as “it takes out the human element in terms of the customer read”.

“The future of gambling, I think, is tied to smart tables. They simply enable the operator to do better things … and provide the customer a better experience,” he stated.

The executive added: “Smart tables are going to revolutionise gaming. We’re fully invested in smart tables in both Macau and Singapore and that’s our future. We believe it’s a very positive development for the industry.”

STRATEGY TO DRAW IN INT’L TOURISTS PROVING TO BE CHALLENGING

RENATO MARQUES, MDT MONDAY, JULY 1, 2024 - 11 HOURS AGO NO COMMENTS 1,233 VIEWS
macaudailytimes.com.mo/strategy-to-draw-in-intl-tourists-proving-to-be-challenging.html

Though the idea of attracting more foreign visitors from long-haul markets to Macau is not new, it has recently become a government plan. While official statistics have been showing long-haul visitor numbers are increasing, particularly from some Asian markets, it is unlikely there will be an increase from other markets such as Europe, European visitors interviewed by the Times said. Macau is an unappealing destination to European tourists because of the travel distance, the difficulties in flight connections, and, more importantly, the costs.

The Times interviewed two Portuguese nationals traveling in Macau, Ana and Sofia. They were in the region for a brief stay after an Asian tour that took them to Thailand, Laos, Malaysia and Vietnam. The two women in their early 60s agree on something – “Macau is expensive!”

Confronted with the government plan to attract more foreign visitors, including visitors from Portugal, the pair believes it will be “very unlikely” that Macau will appeal to the “average Portuguese.” This is despite the Macao Government Tourism Office (MGTO) having taken a Roadshow to Portugal and established several partnerships to expand local promotion to neighboring Spain.

“We might believe that Macau, due to its historical relation with Portugal, could be appealing to the Portuguese but I doubt many will venture here, particularly due to the prices,” Ana said.

“Just minutes ago we were commenting that in some of the more touristic areas [in] Portugal, we are easily driven off a certain restaurant or bar just because a glass of wine costs EUR3 (MOP26),” said Ana.

“Well, the cheapest one that we have had over the past two days in Macau was about EUR8 (MOP68). This might not be such a big deal if we are talking about France or Germany, maybe, but for most Portuguese, it would be outrageous and unacceptable.”

The same feeling extended to accommodation. They do not believe the cost matches the quality.

“We were kind of lucky to have had a friend that came to Macau some time ago and pointed out some places [hotels] where we could potentially stay on a budget. It’s not too pricey but the quality is pretty bad,” Sofia said, identifying a hotel on Taipa Island.

As for the rest, “It’s nice, has some interesting historical places but I would say there is not so much to see or do here to justify staying more than two days,” Ana said, supplemented by Sofia’s, “We should have left yesterday.”

The pair said they were “quite surprised” by the prices charged by “street restaurants.”

“We were expecting the restaurants in the casinos to be expensive, they are everywhere in the world, including in Portugal, but we were surprised by the prices charged by the regular ones, the small and more traditional-looking ones on the streets,” Sofia said.


“It is way too expensive for the kind of food they serve,” she said, giving the Times a rough calculation of about MOP1,000 per person per day for lunch, dinner and a snack.

“This is about 40-50% more than we spend for the two of us eating at similar places in Portugal, even in tourist areas,” she said.

Expanding on her comments, she said it would be difficult for Macau to attract Portuguese visitors.

Sofia said it only makes sense to visit Macau as they did it, as part of a longer trip, with multi-destinations and never coming to visit Macau alone. Besides, she said, “Most Portuguese when planning trips find locations where the costs of living are either similar to or lower than Portugal to compensate for the money spent on airfares and accommodation. Which is not the case in Macau.”

Also in Macau for a short stay was Francesca, a 46-year-old from Bologna, Italy, whom the Times found exploring the center. Francesca said she had visited Macau to fill “free time” in a longer trip that took her to the neighboring cities of Hong Kong and Shenzhen for professional purposes.

“I knew that I had two days off in between some tasks and I planned to come to Macau since it is near [Hong Kong],” she said.

She found the city generally interesting and easy to navigate, particularly the tourist sites that are well-identified but, like Ana and Sofia, also found “not many things to see.”

“In just half a day I went to the Cathedral [Ruins of St. Paul’s], some smaller churches, and the main square area. After that, I went to the Macau Tower and visited the casinos in the downtown area, Lisboa, Wynn, etc. After that, I crossed the bridge and I went to the other area of the Venetian and Parisian, which I found horrible,”she said with a laugh.

“I liked the Taipa village more, it is more interesting than the fake things,” she said.

Francesca found the local food a little too expensive, noting Macau was more expensive than Hong Kong for food.

“In Hong Kong in the Central district, we have a lot of restaurants from all kinds of cuisines and local cafes where you can have a set lunch for about HKD128 or even HKD108.”

“But in Macau, the ones I found were serving similar food for about HKD168 or even higher prices and some did not even include any drinks,” she said, adding, “I also find the Chinese-style eateries more expensive here than in Hong Kong, and with a more limited menu on offer.”

Asked if she found Macau attractive for Italian visitors, she said, “I think only for those that are coming here for some particular purpose, like work or visiting friends,” she said.

“But I did notice that Macau has a potential for niche market particularly in luxury goods. Some of the shops I have visited have products from famous European labels and brands that are significantly cheaper than in Europe.”

“But with Hong Kong so close and better served by connections [air links] I am not sure if many people would make the extra effort just to come to Macau for those, but maybe it is possible if it is marketed in this way. To be honest I had no idea there were so many luxury brand stores in Macau until I came here.”

“In Hong Kong, Macau is marketed as the place of the Portuguese custard cake, the Pork Chop Sandwich, and the old Lisboa Casino, that’s all. If you ask me, if Macau wants to attract more non-Chinese visitors as you said, it probably should start [promoting] in Hong Kong rather than in other countries.”

WHAT THE FIGURES SHOW

A Times analysis of Statistics and Census Service (DSEC) data shows that while Macau is receiving this year a monthly average of more visitors from almost every country and region in the world, when compared year-on-year with 2023, in most cases this variation is not significant.

Taking as an example some of the European countries that have contributed over the years with larger shares of visitors to Macau, such as the UK, France, Russia, Germany, Portugal and Italy, the variation in monthly visitor numbers between 2023 and 2024 is significantly higher.



UK (+38%, + 918 people); France (+44.6%, +631 people); Russia (137.1%, +1,592 people); Germany (+85.2%, +810 people); Portugal (+55.8%, +280 people); Italy (+66%, +330 people).

However, of this group, only Russia has recorded visitor growth when compared with 2019. Over the first five months of this year, Russia contributed 144 visitors more than it did in 2019. In all other cases, the balance is still negative, especially from the UK (-1,607 visitors per month) and France (-1,003 visitors per month), when compared with 2019.

After Russia, the European country that is closer to reaching the pre-pandemic level is the Netherlands, which is currently 168 visitors per month lower than the 2019 level.

In the global analysis, Vietnam is the only country this year that has supplied fewer visitors to Macau than in the previous year, with an average of 136 per month (-16 compared to 2023).

Several countries have already surpassed previous visitor numbers to Macau from the pre-pandemic times, including the Philippines (+5.7%, +2,007 visitors per month); Indonesia (+3.6%, +512 visitors per month); and Thailand (+4%, +499 visitors per month).

GOV’T PROJECTS SIX MILLION SUMMER TOURISTS

The government is projecting tourist arrivals this summer will exceed six million.

Acting director of the Macao Government Tourism Office Cheng Wai Tong said that along with the implementation of a series of measures to benefit Macau, including the mainland increasing the tax exemption for luggage items for resident passengers entering from Hong Kong and Macau, arrivals in both July and August will exceed last year’s numbers.

The hotel occupancy rate will also maintain a good momentum. It is projected occupancy will reach 90%.

Macau’s travel industry is anticipating a summer spike in Individual Visit Scheme (IVS) tourists from mainland China, according to Andy Wu Keng Kuong, president of the Macau Travel Industry Council.

Wu cites several factors as contributing to the expected surge, including the recent addition of eight new mainland cities to the IVS scheme.