China’s easing of quarantine for foreign arrivals caught analysts by surprise, while others saw the move as just the right step even though Beijing is sticking to its zero-Covid strategy.
In a note by brokerage firm JP Morgan Securities (Asia Pacific) Ltd, analysts remarked that “the easing itself will not [impact] Macau’s gaming revenues.”
However, analysts considered the move “quite surprising,” according to a report by GGRAsia, as they were expecting stringent measures to be in place until the Chinese Communist Party Congress, which is set to occur towards the end of the year.
The easing of quarantine is a move in a “good enough direction” in the analysts’ view.
Anyone arriving from outside the country must stay in a quarantine hotel for seven days, followed by three days of home quarantine, the National Health Commission said in its latest pandemic response plan.
The previous rules required 14 days in a hotel plus seven days of home quarantine. Some cities, including Beijing, have already reduced the hotel requirement to seven or 10 days in recent weeks, according to Chinese media reports.
Beijing has maintained tight restrictions on international travel under a “zero-Covid” strategy that seeks to keep the virus out and stop any infections from spreading through lockdowns and mass testing.
This is the first official nationwide change in China’s quarantine policy.
Analysts Vitaly Umansky, Louis Li and Shirley Yang at Sanford C. Bernstein Ltd said the move was “a step in the right direction.”
Currently, there are no indications of whether there will be changes to the individual visa scheme or group visa policies for Hong Kong and Macau, which have long been put on pause due to the pandemic.
The brokerage firm says that, “so far, it is clear China is sticking with the zero-Covid policy.”
Review of quarantine-upon-arrival is constant
Some Macau residents who returned to their homes in Zhuhai after June 18 regained freedom of movement yesterday, following the latest announcement. They were complying with previous guidelines but were deemed suitable for release under the new version.
Health Bureau director Alvis Lo was asked whether Macau will follow suit. Local officials have reiterated that the city must follow mainland guidelines on the containment of SARS-CoV-2 or it will lose the mainland visitor market.
In response to the question, Lo admitted that his bureau has been studying the new guidelines. “We will not rule out the possibility of adjusting quarantine-upon-arrival durations,” the health chief said.
SSM workers are too busy containing the current serial infections, he added, so it might be too early to announce any news in this respect.
“Updates will be announced when available,” the health chief concluded.
Lynzy Valles & Anthony Lam
