Reaction over the new visa restrictions for Macau has been mixed, with the long term significance for the gaming industry being disputed. Shares of international gaming companies with interests in Macau declined when the new travel policy was announced by the authorities in China. It is thought that the restrictions have been imposed to curb gambling by officials, prevent illegal labour in Macau and slow the significant cash outflow from the Mainland to Macau.

The new visa rules will limit the number of times people are allowed to visit Macau and the application period has been increased to 10 days. Business travel permits have been suspended indefinitely and urgent applications cancelled. Guangdong residents, in the nearest region to Macau, will now get single entry permits for Macau instead of the previous double entry and visits must be separated by a minimum two months.

The impact of the new restrictions is expected to be felt within a couple of months and hit the VIP rooms hard. Analysts think that the Macau authorities will work with the Chinese officials on the Mainland to limit the effects. Visitor numbers may be maintained by the increasing non-gaming activity in Macau but this would not compensate for the probable loss in gaming revenue. The casino operators and Macau gaming authority may have to do more to convince the Chinese government that they can implement responsible gaming programmes and crackdown on corruption. (E-05.29.07)

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