Wynn Macau Ltd. fell to the lowest in more than two weeks, leading a widespread decline in casino shares.
Bloomberg has related the slump to statements made by the Secretary for Social Affairs and Culture hinting at restrictions on mainland Chinese tourists to ease overcrowding.
Alexis Tam has said that local authorities intend to approach China’s central government in Beijing to examine Macau’s capacity for visitors, and to consider the extent to which “too many tourists impact residents’ quality of life.”
Wynn Macau dropped by 3.7 pct to HKD21.95 at the close of trading in Hong Kong. Galaxy Entertainment Group Ltd. and Sands China Ltd. fell by 2.7 pct, SJM Holdings Ltd. declined by 2.3 pct, MGM China Holdings lost 2 pct and Melco Crown Entertainment fell 1.7 pct. The benchmark Hang Seng index also fell by 0.4 pct.
Chinese President Xi Jinping urged Macau in December to rely less on casinos in order to diversify and turn the city into an internationally-
recognised tourism and leisure hub. Macau’s casino revenue slumped for an eighth straight month in January, signalling the longest losing streak on record. This comes as Xi’s two-year long crackdown on official corruption in favour of stricter travel rules have deterred high-rollers from entering the territory.
As the Times reported, during a Lunar New Year event on February 19,
Alexis Tam expressed his desire for talks between Macau and mainland authorities to review the Individual Visa Scheme.
“We have to make a scientific decision [regarding the Individual Visa Scheme]. The core principle is that our residents’ quality of life should not be worsened… There are many possible measures [to be considered],” he said.
The scheme was introduced in 2003 and allows millions of visitors from mainland China to visit Macau and Hong Kong by obtaining entry permits without the need to travel with tour groups. The program was first implemented in four cities in Guandong province and extended to 49 cities throughout China.
The number of mainland Chinese visitors to Macau for the first four days of the Lunar New Year rose by 6.7 pct to 443,421, compared with the same lunar calendar period a year ago, according to data from the Macau Government Tourist Office.
Hong Kong is also assessing issues of overcrowding and will need to determine whether or not to restrict or reduce the number of China’s visitors in collaboration with Beijing, Chief Executive Leung Chun-ying told reporters yesterday.
“I don’t agree on expanding China’s individual visitor scheme because Hong Kong has a limited capacity,” Leung said, adding that the number of Chinese travelers to Hong Kong fell slightly over the festive season.
China’s Lunar New Year started from February 19 this year, while the country’s public holiday to mark the festival is from February 18 to February 24. Hong Kong’s markets reopened yesterday after a two-day break. MDT/Bloomberg
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