Shares of casino companies soared on Friday after China announced it would be relaxing its visa travel rules, opening up opportunities for more Chinese tourists to visit popular gambling destinations like Macau.
The news came as a welcome surprise for investors, who have been eagerly awaiting signs of recovery in the tourism sector after the COVID-19 pandemic decimated travel and tourism industries worldwide.
Shares of major casino operators, including Wynn Resorts, Las Vegas Sands, and MGM Resorts International, all saw significant gains in Friday’s trading session. Wynn Resorts shares jumped 7.5%, Las Vegas Sands rose 6.2%, and MGM Resorts gained 5.8%.
Analysts pointed to the key role that Chinese tourists play in driving revenue for casino companies, particularly in Macau, which is known as the “Las Vegas of Asia.” In recent years, Macau has become a popular destination for high-rolling Chinese gamblers, with gaming revenue in the region accounting for a significant portion of overall revenue for many casino operators.
The relaxation of visa travel rules by China is expected to attract more Chinese tourists to destinations like Macau, boosting revenue for casino companies in the process. The move also signals a broader recovery in the tourism sector, which has been hit hard by COVID-19 restrictions and travel bans.
Investors reacted positively to the news, with many viewing the relaxation of visa travel rules as a positive sign for the future of the tourism industry. Some analysts are cautious, however, noting that the ongoing COVID-19 pandemic could continue to impact travel patterns and consumer behavior in the near term.
Overall, the news of China’s relaxed visa travel rules was a welcome development for casino companies, which have been eagerly awaiting signs of recovery in the tourism sector. As Chinese tourists begin to return to popular gambling destinations like Macau, investors are optimistic about the potential for increased revenue and growth for the industry in the coming months.
