CHINA (MACAU & HONG KONG). In encouraging news for Macau travel retailers, the Special Administrative Region government yesterday announced an easing of COVID-related restrictions that had meant visitors from overseas, Hong Kong and Taiwan had to isolate for five days post-arrival at centralised isolation facilities. Effective from midnight on 17 December, they can now isolate at hotels or homes of their choice for the five days.
In another positive development, the South China Morning Post reported Hong Kong’s new Acting Secretary for Transport and Logistics Liu Chun-san saying that preparation work, including resuming service of the high-speed trains to travel to Guangdong province, was under way in anticipation of the Mainland border reopening. Most of Hong Kong’s border checkpoints have been closed since the early days of the pandemic.
That would spell good news for Dufry which operates an acclaimed retail offer trading as Hong Kong Duty Free at West Kowloon Highspeed Station serving passengers bound for Guangzhou South. Another beneficiary of the border opening will be Sky Connection (trading as Free Duty), which operates the stores at Hung Hom, Lok Ma Chau and Lo Wu stations (see table below).
In a separate report yesterday, the South China Morning Post reported that thousands of customs, immigration and police officers will be sent to land checkpoints to manage a predicted surge in traffic as the border between Hong Kong and Mainland China is expected to fully reopen next month.
Macau gaming boost
The new rules in Macau are likely to have a highly positive impact on the gaming sector, a key driver of Macau’s tourism and travel retail sectors.
Travellers will still need to obtain a negative polymerase chain reaction (PCR) result in the 48 hours before entering Macau and also undergo one PCR test at the port of entry and on the third day after arrival. Their health code will be red at first, turning amber if their RAT tests are negative for three days.
The code will then change to green if the RAT results remain negative after the fourth and fifth days. Onwards travel to Mainland China is not permitted until the tenth day.
Henry Lei Chun-kwok, an Assistant Professor in Business Economics at the University of Macau told the South China Morning Post that more Mainland and Hong Kong tourists might consider visiting Macau during the forthcoming Lunar New Year holiday.
“About 20 per cent of our incoming tourists were from Hong Kong, while the remaining 80 per cent were mainland tourists,” he said. “As our country has further relaxed restrictions, many more people might consider travelling to Macau in the coming two months.”
Lei estimated the gambling industry’s monthly revenue would increase to about HK$8 billion (US$1 billion) in January, up from less than HK$3 billion last month.
In related news, the Macau government has signed contracts with six companies to renew their casino licences for the next ten years in the world’s gambling hub, according to The Macau News.
The six licences, effective from 1 January until the end of 2033, are retained by incumbent operators MGM Grand Paradise, Galaxy Casino, Venetian Macau, Melco Resorts Macau, Wynn Resorts Macau and SJM Resorts.
