More Headaches In Stall For Macau Casinos
Being the gambling mecca of the world Macau is expected to continuously produce double digit revenues. Last month we saw disappointing gambling revenues with only a 9.3 percent increase. Added to this is the World Cup which is expected so see billions around the globe glued to their television sets and away from the casinos in Macau.
If that’s not enough to put a dampener on companies like the Las Vegas Sands who operate in Macau, officials in the former Portuguese colony have now cut the number of days Chinese visitors can spend passing through Macau. In terms of the new regulations that will come into effect from July 1, passport holders with transit visa will be able to stay five days only instead of the previous seven days allowed.
The aim of this new regulation is to stop abuse of transit visas. While this news could deliver another blow to Macau’s forecasted growth, analysts point out the fact that the new ruling should not have such a serious impact as most gamblers only stay a couple of days in Macau to gamble anyway.
Another important point to remember is that most of Macau’s revenue is from high-spending VIP’s who according to Fargo analyst Cameron Mcknight will remain in negative low single digits for the remainder of 2014.