[Asia Economy Reporter Park Sun-mi] Casino stocks are soaring as the Guangdong provincial government in China relaxes travel restrictions to Macau.
On the 14th, Hong Kong's South China Morning Post (SCMP) reported that the Guangdong government will lift the 14-day quarantine requirement for people entering from Macau starting at 6 a.m. on the 15th.
Guangdong has decided to waive the 14-day quarantine for those traveling to and returning from Macau who hold a 'green' health code before entry and have tested negative for COVID-19 within 7 days prior to entry. Until now, Guangdong had imposed a mandatory 14-day quarantine on all entrants from Macau to prevent the spread of COVID-19.
SCMP noted that about half of Macau's visitors last year came through Guangdong, and assessed that this measure will serve as a starting point to fully lift restrictions on Macau tourism and revive Macau's economy, which was hit hard by COVID-19.
With the relaxed COVID-19 prevention measures between mainland China and Macau taking effect from the 15th, expectations are rising in the Hong Kong stock market that Macau's casino industry revenues will recover. On the morning of the same day, Galaxy Entertainment, a casino company listed on the Hong Kong Stock Exchange, saw its stock price rise 11.1% compared to the previous day, while Sands China also rose 8.9%.
Macau's casino industry had suffered a blow with sales dropping more than 90% for three consecutive months due to the spread of COVID-19. Macau's economy, which heavily depends on tourism and casino revenues, saw its gross domestic product (GDP) decline by 49% in the first quarter of this year.
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