Loosening of travel restrictions between China and Taiwan could benefit Macau

Macau casinos could benefit from new regulations allowing direct flights between mainland China and Taiwan, Jefferies Research analysts said in a note recently released.

The gambling enclave has long served as a stopover between the two regions, restricting the Macau airport’s capacity, and the new regulations would allow it to handle more incoming passengers.

Shares of Macau casino operators slipped last month when a news report said the Chinese government may place new restrictions on visits to Macau, such as limiting the number of allowed visits from the mainland beginning in October. Visitors are now permitted to go to Macau once every two months.

Analyst Lawrence Klatzkin had said the slowdown could encourage the government to rescind any visa restrictions. MGM Mirage, Wynn Resorts Ltd. and Las Vegas Sands Corp. have operations in Macau.