WEBVTT - Angela Hanlee on Macau (Audio)

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<v Speaker 1>Let's get to Hong Kong. Now. Macau planning to welcome

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<v Speaker 1>back to groups from mainland China as soon as November

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<v Speaker 1>to boost its tourism dependent economy. It comes as Hong

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<v Speaker 1>Kong it's ditching quarantine from today. Joining US is Angela Hanley,

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<v Speaker 1>Bloomberg Intelligence analysts on APAT Gaming and Hospitality research. I mean,

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<v Speaker 1>Macau has been hit so hard by the restrictions. What

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<v Speaker 1>is the outlook now that we will see some tour

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<v Speaker 1>groups welcome back. Well, um, I think this is definitely

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<v Speaker 1>a positive news for Macca casino operatus, especially for Galaxy

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<v Speaker 1>since China and Maca results, because I believe that these

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<v Speaker 1>tour groups appropriately probably float into quota integra di uitals first.

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<v Speaker 1>So but the issue is that the group tours have

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<v Speaker 1>never been the major driver for Maca casinos because they're

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<v Speaker 1>spending per head it's not high. So I would just

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<v Speaker 1>say that this is kind of revitalizing those currently empty

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<v Speaker 1>casino flows in Macau. But I won't actually expect much

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<v Speaker 1>changes for this year, so we still keep our forecast

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<v Speaker 1>that the gaming revenue this year may only reach of

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<v Speaker 1>prep COVID level. But I think this is a signal

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<v Speaker 1>that the mainland Chinese government wants to relax more. So

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<v Speaker 1>probably this will follow with the more proverbs for individual

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<v Speaker 1>like visas for individual visitors. Then that can be kind

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<v Speaker 1>of bringing some upside to forecasts for the gaming revenue

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<v Speaker 1>of next year. Yeah, indeed, so we need the wealthy

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<v Speaker 1>big spenders to come back to those tables to really

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<v Speaker 1>push up revenue. There. Tell us though, just a little

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<v Speaker 1>bit more about this initial reopening. I mean, who is

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<v Speaker 1>going to be allowed to go on these two groups

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<v Speaker 1>those people? I think tours are starting from Shanghai and

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<v Speaker 1>also some other provinces like Bangdong Province. So previously I

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<v Speaker 1>think um Chinese people like a mainland Chinese people, when

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<v Speaker 1>they want to go to Macau, they don't need to

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<v Speaker 1>do any quarantine, so the issue was more about whether

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<v Speaker 1>government authorities allow them to go or not. So at

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<v Speaker 1>LAS now they are allowing these tours, so those people

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<v Speaker 1>will go, and I guess most of them should be

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<v Speaker 1>probably later traveler who has been in China like for

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<v Speaker 1>for more than two or three years. So obviously these

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<v Speaker 1>provinces are kind of more of fluted than others. But

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<v Speaker 1>still I don't believe that this will bring that much

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<v Speaker 1>upside on this year's gaming revenue forecast. How much has

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<v Speaker 1>the very strict policy that's been in place for nearly

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<v Speaker 1>three years now affected Macau as an attractive hub and

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<v Speaker 1>seeing Singapore and the Philippines benefit in terms of relocation

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<v Speaker 1>of staff too. Yeah, so obviously other countries like a

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<v Speaker 1>Singapore and Philippines had more friendly policies for these casino prayers,

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<v Speaker 1>but I think they are catering different clients. So we

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<v Speaker 1>also heard some news about some Chinese people are actually

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<v Speaker 1>relocating to Singapore. Then probably those people are the ones

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<v Speaker 1>who are going to Singapore casinos. But other than that,

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<v Speaker 1>I think it's very unlikely that mainland Chinese rich people

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<v Speaker 1>will actually go to Singapore to gambo rather than going

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<v Speaker 1>to Macau. And I think the issue was more that

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<v Speaker 1>it's very complicated to fly, so uh. As long as

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<v Speaker 1>this kind of recovery kickscene, I believe mainland Chinese people

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<v Speaker 1>still continue to go to Macau to gamble, but those

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<v Speaker 1>casinos in Singapore and Philippines could benefit from booming economy

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<v Speaker 1>in that area. We know that it is about the

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<v Speaker 1>wealthy people at the tables that are gonna really boost revenue,

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<v Speaker 1>but when we do see a reopening and you're seeing

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<v Speaker 1>that with quarantine easing in Hong Kong too. How much

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<v Speaker 1>is Macau come back just in terms of being an

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<v Speaker 1>attractive tourism hub to for concerts and the like. For me,

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<v Speaker 1>I think Macau's gaming revenue has been like a million

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<v Speaker 1>Chinese paper has been contributing on gaming revenue Macau. So

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<v Speaker 1>it's more about the business between mainland China and Macau,

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<v Speaker 1>and Macau is obviously priorititizing the opening with China first,

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<v Speaker 1>which is very much because there's many stuff in Macau

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<v Speaker 1>are working from China, they're community from China every day,

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<v Speaker 1>so there is no way for Maccau to open to

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<v Speaker 1>the other world if mainland China keeps like that kind

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<v Speaker 1>of policy. Alright, Angela will see what happens, but mainland

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<v Speaker 1>tour groups as soon as November to allowed back into Macau.

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<v Speaker 1>Angela Hanley is Bloomberg Intelligence analysts on APAT gaming and

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<v Speaker 1>hospitality research, joining us from our Hong Kong studio