Shares for casino operators in Macau are growing
After a rather dreadful year for casino operators in Macau good news were finally announced when China said that they are preparing to offer them a rescue plan.
This Thursday the Teledifusao de Macau television network quoted Li Gang who is the director of China’s local liaison office, saying that the government in Beijing is about to introduce support policies which are meant to revive the casino industry in Macau.
The fact that China is now offering help to Macau is very ironic since they are largely responsible for their losses. They contributed to this loss after President Xi Jinping took office in 2013 and began a widespread crackdown on corruption among public officials.
This crackdown together with the general economic problems that China has been facing resulted in a drastic reduction of their earnings. The revenue that they take in has fallen from over 70% to just 55% which left the junket industry in a lot of turmoil.
It seems that these measures will mostly consist in developing Macau’s mass market. This means they will try to relax the restrictions on multi-entry permits and extend the individual visit scheme to more Chinese cities. Macau is currently still receiving most of its mainland visitors from the Guangdong province.