North Korea-BDA saga over
It’s finally over. All of the frozen North Korean funds have been thawed and sent. All of the US$ 25 million dollars were wired out last month to a Federal Reserve Bank in New York then wired again to a Russian bank, where North Korea already has an account. Of course, the US State Department has not convinced a large cross section of Macau that their report was more credible than the Ernst & Young report which said BDA was not guilty of assisting in money laundering.

First trimester growth hits 25.6 percent
Macau’s GDP grew 25.6 percent in real terms during the first trimester of 2007. According to the Services of Statistics and Census (SCS)department, gaming and tourism rose 43.5 percent compared with 2006. Investment expenditures related to construction climbed 38.1 percent. Consumption rose 12.4 percent in nominal terms and .08 percent in real terms. Expenses for the Chinese mainland totaled MOP 478 million. Final consumption expenditures for the government rose 3.5 percent while overall importations rose 16.6 percent to MOP 114.36 million.

Imports up, exports down
Exports from Macau witnessed a year-on-year drop of nearly 2.8 percent. Meanwhile, exports rose 14.9 percent year-on-year, according to the Services of Statistics and Census (SCS) department. The figures are based on the period from January to April 2007. They show that textile and garment exports declined 24.3 percent, a sharp slump considering that these products account for 61.8 percent of Macau’s total export value.

CCPI climbs
According to Macau’s composite consumer price index (CCPI) increased 0.57 percent in May to 113.22, according to the SCS. The rise is attributed spikes in sectors such as housing, food and clothes. The report also says that entertainment prices dipped during the month. The CCPI may have also been influenced by the massive amounts of visitors coming to Macau. According to figures, over 10 million visitors came to Macau between January and May of 2007.

Macau files interest claim against US
The Macau government became the third jurisdiction after India and the E.U. to officially lodge an interest claim against the United States. The move follows the US decision to exclude online gambling from the World Trade Organisation’s 1995 GATS, or General Agreement on Trade in Services. Last month, the US withdrew from one of its WTO commitments after losing an appeal against Antigua which claimed that the US had violated their agreement on online gaming. The Macau Gaming Commission is now studying how the US retreat from the treaty can negatively effect Macau.

Venetian slot spike
In the world of Macau slot games, the opening of the Venetian in August brings good news: the city’s current 7,000 poker machines will see another 4,000 machines injected into the stream. Traditionally, table games rule the Asian gaming market. But not for long. Slot play is on the rise, says Aristocrat Leisure’s Asia-Pacific chief Ken Jolly. He would know: Aristocrat is the second largest gaming machine operator in the world and dominates about 50 percent of the Macau gaming market. For example, they provide half of the 1,250 slot machines at the Sands. With more market awareness and appeal to Chinese mainland customers, slots have a fighting chance based on the sheer number of visitors. Jolly told one reporter that, “There is a new market of potential table and machine players that’s hard to even factor in how that is going to effect it, but it’s going to bring lots of people”.

Galaxy surges 25% as ratings stabilise
The StarWorld casino’s strong performance helped Galaxy Entertainment earnings rise 25 percent during the first five months of 2007. The figures, based on unaudited income (excluding tax, depreciation and amortisation) amounted to HK$ 544 million on revenue of HK$ 5.24 billion. The 500 room StarWorld hotel contributed HK$ 3 billion for a total of 76.7 percent of Galaxy’s ebitda and 56.8 percent of the first five months turnover. Also during the first five months of 2007, Starworld earned HK$ 2.12 billion from high-stakes play from 46 VIP tables. They also received mass-market revenues of HK$ 690 million. In July, the company will re-launch its mass-market gaming level with 60 tables, a zone for slots, a sports lounge and non-smoking area. Meanwhile, Standard & Poor’s Rating Services recently gave Galaxy Entertainment a “B” credit rating on the company’s senior unsecured debt. S&P released a statement that said they had removed their ratings from CreditWatch. The review was ushered in following reviews of Galaxy Entertainment Group’s issue of a 240 million bond. In other words, their outlook is stablising. The statement also said that, “The rating on Galaxy reflects the company’s high debt, execution risks associated with its gaming facility in Cotai, Macau, its reliance on the Chinese market for the bulk of customers, and heavy competition”.

Police snatch chip thief
Macau police nabbed staff who were snatching up and secretly pocketing chips worth HK$ 50,000 (US$ 6,250). A 38-year old woman was caught by an unnamed casino’s security cameras. She was apprehended on the spot. Police later searched her apartment and discovered a large pile of cash suspected of being exchanged from losing chips, according to reports.

Emperor’s new cruise
The Emperor is selling off the Princess. The Emperor Entertainment Hotel has received approval from their shareholders to sell its gaming cruise ship, the Golden Princess, to Fortuna International Holdings for HK$126.87 million. The move is viewed as an asset disposal that’s integral to the Emperor’s strategy to focus all of its energy on its casino business, particularly its VIP rooms. Currently, the Emperor’s VIP rooms account for 70 percent of the company’s turnover. Proceeds from the Princess sale will go to open an additional VIP room. The move comes following a recent restructuring and a reduction in the group’s stake in the hotel from 45 to 50 percent.

Venetian partners with 2nd Asian Indoor Games
The Venetian Macao has become the official headquarters for the 2nd Asian Indoor Games. The hotel will also host the Asian Indoor Games closing ceremony on November 3. The games begin on October 26 and will showcase 20 different types of sports with athletes from 45 Asian countries competing.

Paradise city
Stanley Ho’s iconic Macau Palace is about to enter paradise. The historic yet struggling building is in the final stages of being picked up by Hong Kong listed electronic game developer Paradise Entertainment. Once the setting for the 1974 James Bond film “The Man With The Golden Gun”, the palace will likely be renamed the Paradise Casino. The makeover will reportedly bring in up to 500 electronic baccarat terminals to replace the 40 traditional gaming tables. In exchange for managing the property, Paradise will reportedly collect roughly 31 percent of revenues. If things go smoothly, the casino could be renovated and re-launched as early as August.

Crown opens 60 rooms
Apart from its world-class sky lounge, Crown Macau has opened about 60 hotel rooms. The 36-floor property is planning to have all 216 open by the end of July and has opened nearly 70 percent of the site’s gaming facilities. Crown had originally been scheduled to open in May but had trouble with cost over-runs and other delays. Still, it seems that Macau’s first six-star is well under way to shining at full capacity.

Nova-Emperor HK$ 170 million dollar sale
Emperor International Entertainment Hotel is raising its stake in the Nova Strategic Group with a transaction valued at HK$ 170.78 million. The deal will be settled with Emperor International issuing 79.4 million shares valued at HK$2.15 apiece. Once completed, the transaction will see the Emperor as the sole operator of two VIP halls. The Macau hotel operations stake will rise from 45 percent to 50 percent. The move is part of Emperor’s restructuring to streamline its corporate investment structure, raising the proportion of its investment in the Grand Emperor Hotel and the Macau gaming market, says Vanessa Fan, the Executive Director of Emperor International and Emperor Hotel. To secure investors, Emperor International has undertaken a top-up placement by issuing 282,634,000 shares at HK$2.15 each, representing 20 percent of the existing issued share capital.

Belize resorts invokes Macau
Ara Macao Resort and Marina property in Belize is beckoning sun-worshippers and gamblers to converge at this new Central American destination. Opened in June 2007, the 582-acre planned community is playing up its eco-tourism and English speaking cards to home buyers and adventurers alike. Apart from five-star amenities such as golf, luxury hotels and villas, a full service marina, swimming pools, spas, and gourmet restaurants, it has a casino. Belize is one of the few countries in Central America that has legal gambling. Luxury homes for stage two of the project are going for just under US$ 500,000. The connection with Macau? Ara Macao in Latin means “scarlet Macaw”.

Shun Tak pays HK$ 4.58 million in cash
Sir Gordon Wu Ying-sheung’s Hopewell Holdings has agreed to sell Shun Tak Holdings a 50 percent stake valued at HK$ 4.58 billion for two pieces of Macau property – Nova City and Nova Taipa Gardens. Currently, Shun Tak already owns a 25 percent holdings in the buildings, which are adjacent the Crown Macau. Shun Tak has agreed to pay in cash and the deal is pending shareholder’s approval as of press time.

Macau might curb high buildings
Heritage sites are being put in jeopardy owing to a slew of new luxury properties planned near Nam Van Lakes, argue critics. In response, Lau Si-io, Macau’s Secretary for Transport and Public Works, has said that they are considering new height limits on buildings near both Penha Hill and Guia Hill. The deal could effect the Tenacity Real Estate Group, which announced last the opening of HK$ 3 billion project with two 35-storeys.

Shangri-La Cotai
The Venetian Macao has yet another heavy hitter-the Shangri-La Hotels and Resorts X group will be managing two hotels inside a 39-storey building on Cotai. Named the Shangri-La Macao and Traders Hotel Macao, the properties are owned by LVS. The Shangri-La Hotel will have 500 rooms and Traders hotel will have 1,000 and be short walk from the 3,000 suite Venetian, which features about 1.2 million square foot MICE facility, 2,000 seat showroom, 850,000 square foot mall space and a 15,000 seat arena.

Shenzhen housing prices jump 12.3 percent
Investors from Macau, Hong Kong and Taiwan are joining the frenzy
that is making housing prices jump 12.3 percent in Shenzhen. Despite government cooling measures set in motion in 2006, prices for property in the Nangang district peaked at RMB 21,998 per square metrein May. The lowest prices were to be found in Longgang district – they went for RMB 11,500 per square metre.

Tourism marketing and 10 million visitors
The Macao Government Tourist Office (MGTO) kicked off a new marketing campaign called “Experience Macau” last month at Fisherman’s Wharf. According Manuel Costa Antunes, the director of the MGTO, said over 10 million visitors came to Macau, a year-on-year rise of 21.5 percent. Southeast Asia interest in Macau jumped to 68.3 percent during this same period, with Malaysian travelers representing the largest inbound market from the region. The MGTO isn’t the only one. Last month Fisherman’s Wharf held a Father’s Day food promotion that packed over 70 tables with hundreds of people. They also launched a Mozambique food festival at the Afrikana African BBQ as part of efforts to revitalise interest there, said Ali Moosa, the Director of Marketing Communications for Macau Fisherman’s Wharf.

Travel restrictions expand to other cities
Following news that Guangdong would tighten the Individual Travel Scheme, Beijing, Shanghai, Hangzhou and Chongqing reduced the number of approvals for the scheme as well. Currently, 49 cities have been granted permission for the individual travel scheme, with 21 in Guangdong alone. According to reports from China, the number of tourists instantly dropped 8 percent. Hotel catering revenues from group tourists fell by 80 percent.

Bargain flights to Australia
Budget airline carrier Viva Macau will offer flights as cheap as A$768 with accommodation between Sydney and Macau starting on August 15, the company said. They have also announced that they will have introductory fares of A$ 305 one-way to Macau from Sydney and A$ 588 will include all taxes and charges. The promotion will be good until October.

May travel spikes 24.3%
Despite the travel measures imposed in late May, the number of visitor’s to Macau reached 2,121,998 that month, a year-on-year rise of 24.3 percent, according to the SCS. The majority came from the Chinese mainland at 56.2 percent, with 29.3 percent from Hong Kong and 5.6 percent from Taiwan. Of mainland visitors, over 50 percent came on the Individual Visit Scheme – some say this spike that was seen as a rejection of package tours that included Hong Kong. Package tours to Hong Kong began declining following reports that mainland tourists were being ripped off.

Gourmand performance
One of the world’s top culinary extravaganzas is slated to take place in Macau later this year – Gourmet Asia 2007. The event brings together Michelin star chefs who seek to show off their culinary skills, fusing different dishes from around the world. The goodie forum will took place in Bangkok recently and is slated for Shanghai this September. Specifics for the Macau forum will be announced later this year.

Set the night on fire
Portugal based fireworks entertainment company Luso Pirotecnia is rumoured to be returning to Macau this summer to try to set the night on fire. The pyrotechnic group’s popularity stems from their large scale shows involving giant structures. For example, they created the worlds longest waterfall of showering sparks on a 2 kilometre bridge that spans Lisbon’s Tejo river. Last year, the group awed locals with their display during Macau’s 19th Fireworks Festival. The group also performed in Macau in 1996 and 2003. Their Macau tour will likely take place between already billed shows in South Korea and Shanghai.

False passage
Guangzhou police recently arrested several swindlers who were peddling promises of holidays to Macau and Hong Kong. They were bogus trips. According to Guangdong authorities, the crooks distributed fake name cards, handbills and other materials to lure in suspects, who hoped for affordable trips to the SARs. The bogus tour operators may have been taking advantage of a recent ruling that limits mainland travelers to only come to Macau once a month under the Individual Travel Scheme. At any rate, those who paid money for trips never saw their yuan or fake travel agent again. Police have said that one man was cheated out of RMB 1,000. They arrested an undisclosed number of perpetrators and are on the look out for other con-artists dealing in false passages.

Source: Macau Business

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