written and last updated by
Sam Smith at
13 May 2024
Journalist, Editorial Department
The State Council of China has added eight more mainland cities to the list of locations eligible to apply for an Individual Visit Scheme (IVS) visa for trips to Hong Kong and Macau. The changes will take effect on May 27 of this year and are expected to have a positive impact on the casino industry, according to analysts.
The eight cities included are provincial capitals and autonomous regions: Taiyuan, Hohhot, Harbin, Lhasa, Lanzhou, Xining, Yinchuan, and Urumqi. This expansion of regions from which individuals can apply for the IVS visa to Macau marks the second such update in less than three months.
Vitaly Umansky, an analyst at Seaport Research Partners, provided insights on how these changes in visa policy might affect Macau's casino industry. He noted that, in the short term, the impact on visitor numbers and gross gaming revenue will be relatively modest. However, in the long run, this move is expected to be a significant factor in increasing visitor numbers.
The announcement of the expansion by the Chinese government has already had a positive effect on Macau casino operators listed on the Hong Kong Stock Exchange. On the morning of May 13, shares of SJM Holdings rose by 5.2% to HK$3.05 (approximately $0.39), Wynn Macau increased by 5% to HK$8.39 (about $1.07), and MGM China saw a 3.4% rise to HK$15.08 (around $1.93).
Umansky added that the changes in visa policy clearly indicate the Chinese government's ongoing support for Macau and the absence of negative associations with the gaming industry. He also highlighted that the IVS expansion is likely to attract more mid- to high-end visitors, as they tend to travel primarily on individual rather than group visas.
Meanwhile, Wynn Macau reported a revenue of $1 billion for the first quarter of 2024.
