Macau is one of the world’s biggest casino hubs. Many of the most powerful gambling companies in the world own and operate major casino-resorts here. This week, several of the top Macau casino stocks saw their prices surge in a big way.
This isn’t a huge surprise. Macau is beginning to see an increase in tourism from mainland China. Today, we’ll look at exactly which stocks saw their prices increase.
Let’s get into it!
Macau No Longer Requires Quarantine From Mainland China
Macau was one of the first major casino destinations to shut down last year. In February, all of the casinos in this city were ordered to shut down. This took a huge toll on Macau’s economy and left thousands of individuals without work.
Within a few weeks, many of the casinos here were up and running again. Unfortunately, tourism rates didn’t immediately jump. Travel restrictions to and from Mainland China remained in place and almost no visitors were making the journey here. That led to a significant drop in revenue over the course of 2020.
Things are beginning to improve, though. This week, Macau officially decided to lift Mainland China from its required quarantine list. That means visitors from the Mainland do not need to spend time quarantining upon arrival to Macau.
This was the final move needed to get Macau up and running again. The quarantine rules were keeping tourism rates in Macau extremely low. With these rules no longer set in place, casino companies in this city are expecting to see a huge increase in visitors.
That includes many US-based companies with property in Macau. MGM Resorts, Las Vegas Sands, and Wynn Resorts all own and operate casino-resorts here. For most of the past year, these companies have been seeing large revenue declines from their Macau properties.
Things are expected to turn around soon. As a result, these casino stock prices are beginning to surge once again.
Here’s Which Macau Casino Stocks Are Surging Right Now
Macau has been one of the most profitable casino destinations for many years. As we just pointed out, several of the top US casino companies own properties here. Most of 2020 saw these companies lose money from their operations in Macau.
This week, Macau casino stocks hit their highest levels in months. Sands China Ltd. saw a stock increase of nearly 10%. MGM China Holdings and Wynn Macau Ltd. experienced stock increases of around 9%.
It’s clear that shareholders believe things are about to improve here in a big way. Lifting quarantine regulations here was a game-changer. Angela Han Lee, a financial analyst for Bloomberg, spoke about this situation to the media this week.
“Easing quarantine policy between mainland China and Macau could provide a ground for foot traffic improvement for Macau casinos,” Lee said. “We now need to watch how the mainland’s policy toward overseas gambling is in March as it does not want Macau to become an infrastructure facilitating that.”
Things can change fast in the land-based gambling industry. There’s always a chance that something comes up to once again disrupt the flow of tourists into Macau. For now, the casino companies here have reason to be optimistic.
There’s a lot happening with the casino industry in Macau. Analysts now feel that the casino industry in Las Vegas is set to recover soon, too.
Las Vegas Continues Seeing a Relaxation of Regulations
The world’s casino industry has been devastated by the events that are unfolding around the world. Places like Las Vegas are still struggling immensely right now. Tourism rates are beginning to increase, though, and many analysts expect big things for this city over the course of 2021.
Infection rates in Las Vegas are starting to drop. As a result, Governor Sisolak is loosening the restrictions set in place here. Occupancy levels are increasing and restaurants are able to operate for longer hours.
These regulation drops will help to boost tourism levels. Many have been hesitant to visit Las Vegas while the city is under intense health restrictions. As these begin to disappear, more people around the country will choose to visit the city.
Casino companies are expecting to see another big increase in visitors. Many are now choosing to increase their operating hours, as a result. MGM Resorts recently resumed its 24-hour operations at three different properties including Park MGM, The Mirage, and Mandalay Bay.
It seems as if the land-based casino industry is finally beginning to recover. Many casino hubs around the world are bouncing back. It seems likely that Macau casino stocks will keep rising as long as this trend continues.
Do you think Macau will begin seeing major surges in tourism? When will Las Vegas see 2019-levels of tourism? Let us know in the comments section below!
The post Macau Casino Stocks Are Surging Right Now appeared first on GamblingSites.ORG.