Macau imports rise 16 percent
During the first five months of 2007, the value of Macau’s imports grew 16.9 percent to MOP 16.45 billion, according to the Statistics and Census Service. Meanwhile the total value of imports amounted to MOP 3.67 billion, a 13.4 percent year-on-year rise. The value of imports to the Chinese mainland and Hong Kong, which comprise 52.6 percent of the total of all imports, rose 11.5 percent, a 12.6 percent year-on-year rise. This same period witnessed Macau’s total value of exports slip 2.9 percent to MOP 1.79 billion. The value of domestic exports fell 18.7 percent to MOP 1.08 billion and the value of re-exports increased 37.6 percent to MOP 708 million. The Statistics and Census Service also reported a trade deficit of MOP 1.89 billion for 2007.

Worker injuries up
Macau witnessed 5,570 cases of worker injuries in 2006, a 12.4 percent increase over 2005, according to the Labor Affairs Bureau. The statistics also show that the accidents led to six fatalities and seven cases where workers were so severely hurt they could no longer work again. The construction industry at 22 percent and the hotel and restaurant industry at 21 percent were the leading sectors recording the highest rates of injury.

Power demand surges
Macau’s electricity consumption jumped 17.6 percent to 994 million kilo-watt hours (kWh) during the first five months of 2007, according to reports from the government and Companhia de Electricidade de Macau (CEM). The reports also state that more than 50 percent of the SAR’s electricity comes from the China Southern Power Grid in Guangdong, an exponential rise of 15 percent over the past two years. By contrast, last year the city burned through 2.4 billion kWh, a 37 percent rise from 2003. CEM officials say power consumption is expected to reach 4.3 billion kWh by 2010. To keep up with demand, Macau opened a third electricity cable with Guangdong in May and is expected to send out a fourth cable by the end of 2007. The new cables will push the city’s imported electricity consumption well over the 60 percent mark. New casinos and a fluctuating international oil market are being blamed for the sharp spike in consumption and its corresponding costs.

Bolstering ties with Portuguese world
The Monetary Authority of Macau (AMCM) recently sent a 19-member delegation of local bankers and insurance companies to promote the SAR to Portuguese speaking countries such as Angola, Mozambique and Portugal. Headed by AMCM Chairman Anselmo Tang and the Director of the Economic Affairs Office, Zhou Zhihui, the delegation focused on strengthening communication between Macau, Maputo, Luanda and Lisbon, as well as reached out to local banks to explore possible co-operation. The delegation did not visit Brazil. In related news, the government of S‹o Paulo, Brazil will be leading a business mission to Macau and other major Pearl River Delta cities this December in coordination with the Chinese-Brazilian Chamber of Economic Development.

Top tier telecom penetration
Macau’s mobile market recently reached a penetration rate of 137 percent, according to a report by Research and Markets titled “2007 Asia-Telecoms Mobile and Broadband in Hong Kong and Macau. This is the highest rate in the world. The report also says that fixed lines in Macau reached a saturation point at a little over 35 percent teledensity in recent years, but is still trailing compared to the momentum of the mobile market. It also noted that neighboring Hong Kong had a 54 percent teledensity for 3.8 million fixed telephone lines and 9.3 million mobile subscribers for a mobile penetration rate of 135 percent.

Inflation inches higher
The Composite Consumer Price (CPI) rose to 114.37, a 1.02 percent increase over May. Rising costs for food, non-alcoholic beverages, clothing, footwear, and household goods were attributed for the increase.  The CPI also showed that costs in June are hitting poorer residents harder than richer residents, with the average composite climbing to 4.73 for the first-half of this year compared with same figures for the same period in 2006.

CTM & IBM ink deal
Companhia de Telecomunica›es de Macau (CTM) and IBM’s Business Continuity and Resiliency Services (BCRS) arm for China and Hong Kong recently announced a strategic partnership deal. The move will allow the two to enhance local IT infrastructure and support services and maintain stronger business continuity. The aim will ultimately protect brands and improve customer satisfaction. According to IBM executive Tong Fung, the move will further fortify Macau’s traditionally struggling IT services. Over the past year, CTM has also forged deals with Alcatel and Tata Consultancy.

Macau-Mainland sign CEPA
The central government yesterday awarded Macau-based companies larger access to the Chinese mainland market for more than 11 industries by signing a fourth supplement to the Closer Economic Partnership Arrangement or CEPA. Macau signed the first of three CEPA supplements with the mainland in 2003. The latest signing opens up room for cooperation on sports, the environment, translation, public utilities and tourism. The minimum bar for Macau and mainland joint-ventures between wholly owned enterprises will decrease from RMB 25 million to RMB 15 million. Joint ventures in tourism will decrease from RMB 12 million to RMB 8 million.

Straightening the numbers
The Macau Gaming Inspection Coordination Bureau (DICJ) will be adjusting the HK$ to MOP exchange rate in their reports in order to clarify figures for analysts and the media. DICJ Director Manuel Neves wrote a letter to lawmaker Kwan Tsui Hang confirming that the old way of measuring the exchange rate (HK$ 1 to MOP 1) for official gaming statistics would be replaced with a HK$1 to MOP 1.03 rate of exchange. According to Neves, the policy is effective immediately.

Casino workers unsatisfied
The results of a new survey say that’s exactly how Macau’s casino workers feel with their jobs compared to non-casino workers. So contends Sunny Ieong Iat Fo, the project co-coordinator at Macau University’s Institute for Sustainable Development (ISUS). According to a recent ISUS telephone survey, casino workers feel frustrated that they aren’t being offered skills development, work-related health and the chance for job promotion. The survey suggests that gaming operators and/or government agencies should create new policies to enhance croupier training. Part of the strain, the survey said, was due to the fact that only locals can work as croupiers or dealers and operators can’t recruit outside labour for these positions. Given the labour shortage, local croupiers can’t be promoted because there will be no one to fill their space. The report also said that croupiers had no plans to seek additional training because of their current limitations and felt disheartened.

Loan shark syndicate sting
The Macau Judiciary Police’s special gaming unit recently raided a hotel where loan sharks were holding a 40-year-old man from the Chinese mainland against his will until he paid the debts he owed them. Three suspects were arrested on the scene and a senior syndicate member was later picked up. The syndicate had loaned the man HK$ 200,000 – he gambled it all away within a matter of hours. Police are conducting a manhunt for other gang members.

Government gambler arrested
A government official (rumoured to be a section chief with the Land, Public Works and Transportation department) was recently arrested on charges of embezzling MOP 230,000 and gambling it on football matches, according to reports. The official admitted that he was guilty and that the funds were supposed to be deposited into a designated office account. Overall, the official submitted 20 bogus bank receipts and his foul paper trail was later spotted by the audit department. Investigators were only able to recover MOP 5,000. This is the second major scandal to rock the department; the most notorious being the ongoing Ao Man Long saga.

SJM denies McFadden rumour
Frank McFadden, the President of Joint Ventures and Business Development for SJM, recently refuted a rumour printed in a Chinese newspaper which said he was leaving the company. Stanley Ho weighed in on the whispers by issuing a statement which said that McFadden, “is well supported by the company and has initiated a range of improvements in the company operation”. McFadden was on holiday aboard his fishing boat in the West of Ireland when the rumour surfaced. Macau’s labour crisis has created a rich “head-hunting” environment, with skilled workers and managers commonly hopping from one venture to another.

Venetian Macao and Global Cash Access deal
Cotai’s colossal casino will have instant cash kiosks. Currency provider Global Cash Access recently struck a deal with the Venetian Macao to stock their property with the QuikCash kiosks. GCA is also adding its patented 3-in-1 ATM functionality to automated slot redemption. Moreover, the Venetian Macao will employ GCA’s central credit system-a proprietary database of gaming patron credit history and transaction data. The latter service was designed to help casinos improve their credit-making decisions. The system will give patrons efficient credit card advance and debit card withdrawal transactions, according to GCA.

Galaxy doesn’t feel travel pinch
Ciaran Carruthers, the Chief Operating Officer for Galaxy Entertainment’s StarWorld Hotel and Casino has announced that they have not felt any negative effects owing to the restriction on the individual travel visa schemes. The Galaxy has also recently remodeled their third floor with a deluxe slot gaming hall with 300 machines and an “unprecedented” 10-cent minimum bet which they claim gives greater incentive and freedom for players to go after jackpots.

Tug of war
It’s a new turn for the legal imbroglio between Dr. Stanley Ho Hung-sun and his sister Winnie Ho Yuen-ki over shares in Sociedade de Turismo e Diversoes de Macau (STDM) – the call to move the court case from Hong Kong to Macau. Dr. Stanley made the motion, arguing that Hong Kong’s High Court would have difficulty comprehending the concepts of Macau law. Moreover, Dr. Ho’s counsel, Paul Shieh Wing-tai, argued that STDM documents were not subject to Hong Kong’s subpoena jurisdiction and could only be obtained through a “time-consuming” request procedure. Winnie Ho claims that she fears for her safety in Macau, citing the fact that several of her lawyers in this case have been attacked.

Nice Waldo
Get Nice Holdings has agreed to purchase another 20 percent stake in the Grand Waldo for HK$ 350 million. Get Nice made the acquisition by purchasing Prime Properties Holdings company Dragon Rainbow Limited. For the deal, Prime Holdings will receive HK$ 150 million in cash, as well as issues of shares and bonds. The deal will raise Get Nice’s overall stake in the Grand Waldo to 45 percent. In a statement, Get Nice said that the deal will, “strengthen its investment portfolio in Macau where the real estate market is expected to show strong growth potential”.

Spectrum-OSO hires MacKillop
Gaming intelligence expert Norman MacKillop has been hired as the Managing Director of Spectrum-OSO Limited in Macau. Formerly the head of the Venetian Macao’s Investigations Department, MacKillop has over 23-years of police experience under his belt. Spectrum OSO is one of Asia’s leading business intelligence and due diligence firms and was hired by the Singapore government to investigate applicants for the Marina Bay and Sentosa Island projects.
Moody’s give Macau thumbs up
The overall outlook for the Asia Pacific gaming and entertainment sector is stable, according to Moody’s Investors Services. According to a Moody’s statement, “Conditions in Macau are highly favorable to the gaming and leisure sector, underpinned by advantageous demographic trends and a positive economic climate”. Moody’s also noted a word of caution, “However, given that expansion in Macau is largely debt-funded, high gearing is the norm, and rapid growth and heightened competition will create a degree of uncertainty for the companies involved”. They also noted that medium-to-long term success needs deep pockets to ensure business plans are fully executed.

Hong Kong braces for Macau MICE
The Executive Director for the Federation of Hong Kong Hotel Owners, Michael Li, has said they are planning a strategic alliance to brace for Macau’s mighty MICE market. Li and others, including Stanley Chu, the chairman of the Hong Kong Exhibition Organisers Association, told the South China Morning Post that Hong Kong needs to construct more modern exhibitions centres. Whilst they don’t imagine that Macau will menace Hong Kong’s MICE in the short term, they and other property interests are nevertheless looking hard at what the Venetian (with its 163,900 square feet of convention space, 803,900 square feet of exhibition space and 15,000 seat arena) will mean to Hong Kong’s MICE when the Vegas based piper starts to play on August 28.

Property corruption campaign
Mainland ministries have started investigations into charges of collusion between Shenzhen authorities, property developers and real-estate agents. Suspicions include embezzlement, bribery and the swindling of investors. In a recent investigation of Shenzhen’s 3,677 developers and agencies, a dozen lost their licenses and 52 were asked to alter their business practices. More investigations are currently underway.

Full Crown
Melco-PBL’s six-star jewel Crown Macau is now fully operational. All of their 216 hotel rooms, which include eight posh villas and 12 swank suites, are now ready for the public to slumber in style. Moreover, Crown Macau’s four signature restaurants and world class spa are ready and waiting for patrons. Despite set-backs, Crown Macau is the second six-star establishment in China. Its five floors of gaming also have all of their 222 gaming tables open, which include 80 VIP tables, 142 mass market tables and 550 electronic machines. Some say the crowning touches were worth the wait.

Rates on the rise
The 12th Asian Real Estate conference pointed out that the casino boom is attracting a steady stream of expatriates, many of whom are paying through the nose to local property agents. According to analysts at the conference, the average price for residential unit transactions hit MOP 12,433, a 27 percent leap compared to the same quarter last year. As prices soar, rates for Macau’s expected 21,000, three-bedroom homes over the next four years will sell for HK$ two to three million apiece, requiring buyers to have minimum incomes of HK$ 28,000 per month.

Reviewing affordable housing
Macau’s Housing Bureau President, Chian Coc Men, says that the city’s public and affordable housing must continue to sustain itself and absorb new tenants in order to keep the entire system tenable. Chian is calling for a review of the system that would allow the bureau to remove tenants who are no longer suffering from economic inequity. Moreover, Chian says that reviews about leasing conditions will also be set in motion with a final proposal being submitted for public debate. Currently, the Housing Bureau supports about 5,000 tenants, some of whom, contends Chian, have seen their incomes increase 52 percent whilst as many as 29 percent have seen their wages drop.

Secret land concessions
Ten land concessions reviews are being considered behind closed doors, according to local media. The President of the Eventual Committee for the Analysis of Public Regimes and Land Concessions of the Legislative, Kou Hoi, said the secretive nature of the considerations owes to the fact that they are still asking the government for details. Do these ten concessions deal with casinos? Public officials aren’t saying. The concessions under consideration, however, will not include analysis of criminal cases; like those being handled by former Secretary for Lands, Transport and Public Works Ao Man Long. Once the committee has received sufficient evidence from the government, they will analyse and create a final report. The general public and private sector do not have a say in the commission’s findings.

Emperor’s results
The Emperor International Holdings conceded that their net profit for the year ending March 31st dropped 8.27 percent to HK$ 488 million. That being said, their Macau hotel and gaming arm, Emperor Entertainment Hotel, witnessed a turnover rise of 275 percent to HK$ 1.3 billion and saw HK$ 272 million in profits, a 63 percent rise. Indeed, the Macau property is Emperor’s cash engine. Emperor also recorded a revaluation gain of HK$ 259 million, and a contribution rise of HK$ 95 million, which amounts to over 64 percent from the previous year, which saw HK$ 58 million in contributions. From the disposal of investment properties, the group gained HK$ 63.4 million and saw overall operation profits total HK$ 185 million, a 52 percent spike from the previous year’s earning of HK$ 121.7 million. Emperor Entertainment Hotel Ltd: annual 2006/2007 results also state that their shareholders garnished HK$ 487.7 million in profit with a gross profit margin of 72 percent.

US$ 198 luxury estate project
Signal Media & Communications Holdings has said it will buy an HK$ 1.55 billion (US$ 198 million) or 86 percent stake in a Macau luxury property owned by Sociedade de Investimento Imobiliahrio Pun Keng Van SA.  Signal, which was formerly known as Goldigit Atom Tech Holdings, a manufacturing and insecticide interest, has said it will construct a high-end residential, retail facility with recreation facilities (ahem, casinos?) with a total of 600,630 square feet of gross floor area. Announced on the Hong Kong Stock Exchange, Signal will issue convertible bonds and a placement of HK$ 1.1 billion shares valued at HK$ 0.18 apiece to pay for the acquisition. The share placement is expected to raise HK$ 188 million.

Macau buyers curbed in Shenzhen
In reaction to Shenzhen’s property rates, which have surged 50 percent  this year alone, authorities in the Special Economic Zone have implemented a one-home limit policy for residents of Macau, Hong Kong and Taiwan. According to reports, new home prices in Shenzhen reached RMB 14,223 per square metre in May, an increase of 51.57 percent from RMB 9,384 per square metre in 2006. The new law will not effect home-buyers who currently own more than one flat, but will limit them from buying more. New buyers must sign a guarantee that the home they purchase will be for their own personal use. The law will only impact 2 percent of the speculator market and does not limit mainlanders from owning one or more properties.

Maldives visas
Visas to the Maldives are now available on arrival to all Macau passport holders. The new ruling is part of the Maldives larger campaign of expanding their tourism sector. It is the 76th country that has agreed to grant visa-free access or visa on arrival to Macau passport holders. Another nine countries give visas on arrival to Macau Travel Permit holders.

Pandora’s planet
The China National Tourism Administration (CNTA) has recently allowed Macau and Hong Kong funded tour agencies to cater to mainland tourists. The move is part of CNTA’s current drive to allow foreign tourism operators into China by lowering capital requirements and permitting subsidiaries.  Last month, CNTA allowed foreign-funded travel agencies to set up subsidiaries in China four months ahead of the November 11 deadline set by the World Trade Organization (WTO). On the other hand, the most lucrative sector of the China tourism market, outbound travelers, will stay closed to foreign tourism agencies because they are not under WTO obligations to do so. By 2015, the WTO estimates that catering to outbound travel from China will be the world’s fourth largest travel market.

Venetian’s new jewels
It’s an occasion that’s supposed to gleam. The Macau 2008 International Jewelry Exhibition will be held from June 14 to 17 at the Venetian. The event will draw over 500 global jewelry makers who are eager to enter the China market. According to the Hong Kong Jewelry Manufacturers Association Chairman Cheung Chi Won, the majority of exhibitions will be from Asia and will help Macau’s profile as a MICE and tourism destination sparkle.

Cheap bay stays
Forget five-star stays for a moment: the Cheoc Van Youth Hostel and H‡c S‡ Youth Hostel are touting their affordable bunks at two of Coloane’s bays. At Cheoc Van, guests have the option of one of two, 10-bed dormitories and two bedrooms, while at H‡c S‡ they have options of 16-bed dorms, four-bed rooms or six two-bedrooms. Sponsored by the Education and Youth Affairs Bureau, the facilities also feature free internet access, shared kitchens and barbecue areas.

On the road
Macau’s Secretary for Social Affairs and Culture, Chui Sai On, and Macau Government Tourist Office Director Jo‹o Manuel Costa Antunes recently kicked off a special programme dedicated to promoting Macau in Shanghai. The road show, titled “Experience Macau”, was held at Brilliance Shimao International Plaza along Shanghai’s bustling Nanjing Road. The delegation also promoted 20 hotels, and included representatives from travel agents, airlines and the emerging MICE market.

Hotel occupancy up
In May 2007, roughly 453,669 guests checked into hotels, a 32.3 percent year-on-year rise. Macau’s Statistics and Census Service reports that hotel occupancy figures rose 6.9 percent to 72.3 percent. Four-star hotels lead the field at 77.6 percent. Average stays rose from 0.11 night to 1.26 nights. During the first five months of 2007, approximately 2,287,312 guests stayed in Macau, a 26.2 percent year-on-year increase. Of these guests, 51.3 percent came from the Chinese mainland and 26.7 came from Hong Kong.

Safer for mainlanders
Travel agencies in Shenzhen are reporting that mainlander tourism complaints about Macau and Hong Kong are down. According to the Shenzhen Municipal Tourism Bureau, the lowered rates of shop-swindling are due to the work of Hong Kong and Shenzhen’s tourism authorities efforts to weed out crooks. Macau is reaping this benefit too, despite an egregious case in April where three elderly travelers from the mainland were abandoned in Macau by their tour guide, who disappeared after handing out their ferry tickets. Also, certain unscrupulous merchants have been put to pasture thanks to the central government’s “name and shame” anti-exploitation campaign.

More visitors in June
Approximately 1,921,384 visitors entered Macau in June, a 20.3 year-on-year rise, according to official statistics. The Statistics and Census Service (SCS) reports that 51.8 percent came from the Chinese mainland, 32.2 percent came from Hong Kong and another 6.3 percent arrived from Taiwan. Over 50 percent of the mainland travellers arrived in Macau on the Individual Visit Scheme, the SCS stated. There is also a trend of increased Taiwanese visitors, which saw a 4.1 percent rise in June over May. During the first half of 2007, Macau welcomed 12.64 million visitors with year-on-year increases of 23.9 percent for Hong Kong visitors, 18.5 percent for visitors from the Chinese mainland and 3.1 percent for visitors from Taiwan.

F&B influence tourism index
Macau’s Tourism Price Index (TPI) hit 129.59 during the second quarter of 2007, a 2.29 percent rise over the previous quarter. According to the Statistics and Census Service, the rise was attributed to a 9.67 quarterly rise in the restaurant service. The TPI rose 7.95 percent compared with the second quarter of 2006, and increased by 8.91 percent during the first half of 2007 over the same period last year.

Mickey Mouse likes Macau
As the Disney Corporation expands into China and Southeast Asia, they like what they see in Macau. So said Hong Kong Disneyland’s Vice President for Sales and Travel Trade Marketing, Josh D’Amaro. The proliferation of casinos and Macau’s tourism growth will benefit Disney because of its close proximity to Hong Kong, D’Amaro said.

Package tours rise 21 percent
Approximately 289,226 visitors on package tours came to Macau in May, a 21.3 percent year-on-year rise. Of course, mainland package tours, which accounted for 189,086 tourists, saw a 2 percent decrease. On the other hand, the number of package tours from Taiwan expanded exponentially at 128 percent with 32,630 visitors. Package tours from Hong Kong saw a spike of 193 percent compared to May 2006, bringing in 22,012 travelers in May.  According to Macau’s Statistics and Census Service, during the first five months of 2007, visitors arriving on package tours increased by 36.5 percent year-on-year, with over 1,698,338, visitors.

Macau tourism top prize
The Macau Government Tourist Office (MGTO) recently received a “best of show” award for its “2006 Macau World Heritage Year” marketing campaign at the Pacific Asia Travel Association’s (PATA) Gold Awards in Bangkok. The inscription “The Historic Centre of Macau” on the UNESCO World Heritage site was lauded for boosting the city’s economic value and vibrant cultural heritage and cherishing its “historic centre”. PATA is a non-profit membership association and recognised authority on regional travel that networks closely with nearly 100 government bodies, over 50 airlines and cruise ships and hundreds of travel companies.

Viva Macau to Pusan
Furthering their reputation as Macau’s first international low-fare airline, Viva Macau is launching direct flights to Pusan, South Korea with a promotional price of MOP 888 one-way tickets. The new route to South Korea’s second largest city is only available on Wednesdays, Fridays and Sundays. Viva Macau CEO Con Korfiatis said Pusan is part of the company’s exciting new plan to expand regional services, with direct flights to Sydney starting August 15 and destinations such as Tokyo, Ho Chi Minh City, Manila and Phuket preparing for take-off in the future. Korfiatis added that these routes will benefit travelers from Macau, Hong Kong and other cities in the Pearl River Delta region.

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