[Click eStock] "Paradise Set for Jackpot as Visa-Free Entry for Chinese Tourists Expands"

Visa-Free Entry for Chinese Group Tours Expanded Nationwide and Extended Indefinitely
Direct Benefits for Incheon and Greater Seoul Area... Casino Industry Recovery

As the government moves to expand visa-free entry for Chinese group tourists nationwide and extend the policy indefinitely, Paradise's casino performance is also expected to surge.

On July 16, KB Securities raised its target price for Paradise by 30% to 26,000 won, while maintaining a 'Buy' rating. The previous day's closing price was 18,690 won.

This outlook is based on the expectation that the government will enact policies such as nationwide visa-free entry for Chinese tourists into law by September, benefiting the Incheon and greater Seoul metropolitan areas.

This policy was jointly announced by the Ministry of Economy and Finance and the Ministry of Culture, Sports and Tourism on March 20 as part of the 'Global Growth Strategy for the Korean Tourism Market.' The reason it has not yet been enacted is due to ongoing ministerial appointments in the new administration. Once these appointments are finalized, the policy is expected to move forward quickly.

This is interpreted as a reciprocal measure following China's decision in November last year to allow visa-free entry for South Koreans. The policy is expected to be implemented as early as September, or at the latest by November, when Chinese President Xi Jinping is anticipated to attend the Asia-Pacific Economic Cooperation (APEC) summit.

Paradise owns the Paradise City Hotel and Casino, located just 10 minutes from Incheon International Airport. As of last month, 3,492 flights from China arrived at Incheon Airport, far surpassing Jeju Airport (612 flights) and Gimpo Airport (240 flights). Foreigners-only casinos are not subject to regulations on the number of operating tables, allowing them to flexibly increase the number of tables or raise betting limits in response to demand.

Lee Sunhwa, a researcher at KB Securities, stated, "Last month, Macau's total gross gaming revenue (GGR) reached approximately 3.6 trillion won, the highest since the COVID-19 pandemic, confirming the industry's recovery. This is expected to have a trickle-down effect on Korea's foreigners-only casinos as well."