The thing about the pandemic is that it’s far from over. It took everyone by surprise and lots of people and businesses suffered. They had some time to recuperate, but with the pandemic showing no sign of stopping, they still have a long way to go.
The casino industry was also hit. One such region is the Macau region which has been in decline for the past 3 years. But recently the country’s leader announced that the country will continue with the e-visa program for travelers and even allow group tours. This piece of good news bumped the shares a bit.
The Current Situation
Macau was hit by the pandemic back in 2020, as did the rest of the world. Restrictions were put in place and the casinos suffered. Once the first wave of restrictions was lifted, people and casinos had breathing ground.
Nowadays, the pandemic is hitting hard again which is why new restrictions have been put in place. It seems like a prudent measure and the people of Macau need to be kept safe. But the thing about it is that 90% of Macau’s revenue is made up of tax revenue from casino venues.
With a number like this, it’s evident that a large portion of the population of Macau is employed in these establishments. Nowadays, they can work if their work can be completed from home or online. But the recent decisions of China’s president have given businesses and employees some hope.
In other words, the nation’s leader announced that in November, this year, the e-visa program would continue and visitors to Macau will also be allowed to take part in group tours. Tourism is another one of Macau’s primary sources of revenue which is why this is good news.
This decision boosted morale as well as the shares of some of the biggest complexes in the region. SGM and MGM China’s shares increased by 8%, Wynn Macau’s shares jumped by 7% and Sands China’s shares rose the most by 13%. This is a good sign of things to come as the region is preparing for a fresh injection of revenue into the budget.
Country leaders need to take all sorts of precautions to keep their people safe. But they also need to stimulate the economy to sustain an entire society. That’s why Macau will continue to be a tourist attraction with the e-visa program.