Visit of the Chinese President can have a negative effect on the Macau gambling industry19.12.19 | Macau,Gambling,Casino,China
Visit of Chinese President Xi Jinping to Macau is highly controversial. On the one hand, some note the negative impact of the visit on the short-term GGR and some expect global news that will shed light on the financial well-being of the special administrative region in the future.
The arrival of the head of state is scheduled for December 18-20.
According to the analysts of the Swiss Suisse Group AG, Macau's GGR may be reduced by 15-20%. Financial indicators are already start to connect with the control of the movement of citizens and other security measures before the arrival of Xi Jinping.
The opinion of experts is based on monitoring of the daily performance of GGR gambling establishments in Macau. At the same time, the introduction of increased control over the movements of the people of China, especially those planing to visiting Macau, is called the main reason for the reduction.
Presumably, the tightening of visa rules, which applies to those who have visited Macau more than once, will be valid until December 20. At the same time, experts note that the cluster of visitors most desirable for Macau operators was hit.
Despite the negative news, experts note that the problem is not structural in nature and therefore will not affect the GGR of 2020, although it will adversely affect the results of the fourth quarter.
The good news is related to what exactly the visit of the head of state is dedicated to. According to preliminary information, China plans to turn the territory into a financial center. To implement the plan, a piece of land on the neighboring island of Hengqin has already been prepared.
Experts note that the creation of a financial center can have a beneficial effect on the PRC economy and, in the long run, the Macau gambling industry. Experts also add that the future of Macau is most likely to be associated with the development of the financial and tourism industries as the main directions for the development of a special administrative region. At this stage, it is too early to talk about the direct impact on the gambling industry of Macau, however, in the long term, measures will help maintain the density of the tourist flow.
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