ADB report says Macau in top five
Macau was recently listed as one of Asia’s top five economies by the Asian Development Bank (ADB). Hong Kong, Taipei, Singapore and Brunei Darussalam were also listed in the top five. According the report’s Price Level Index, which measures the ration between purchasing power and exchange rage, Hong Kong and Fiji ranked as the two most costliest places, followed by Macau, Singapore and Taipei. The report noted that the Chinese mainland and India lagged behind.

Consumer complaints rise
Macau’s Consumer Council (CC) saw a 23 percent rise of complaints during the first half of 2007. CC President Alexandre Ho Si Him said that of the 1,872 complaints received, 28 percent (532) pertained to the retail sector. Other complaints centered on property and food safety. Ho said the higher figures showed flaw’s in the city’s existing laws, policies and services as well as a growing sense of consumer rights. The CC also saw a 30 percent rise in tourism complaints, mostly about mobile phone and watch purchases. Telecommunications products and services were also part of the complaints.

Former KMT politician arrested in Macau
Ex-Kuomintang legislator turned fugitive Chang Wen-yi was arrested last month after touching down at the Macau International airport on a flight from Shanghai. Chang had been on the run from Taiwanese authorities since December 2004 on charges of fraud and insider trading. His case also involved Taichung Kuangsan Group Chairman Tseng Cheng-jen. Chang and Tseng allegedly embezzled all of the company’s assets. Chang was sentenced to one year, but had already fled the country by the time the decision came down. Prior to his recent arrest and deportation back to Taiwan, Chang did business near Shanghai.

Running motors
As of the end of June, Macau’s 28.6 square kilometres swelled with 169,410 vehicles, according to the Statistics and Census Service (DSEC). They reported that Macau had 5,923 vehicles per square kilometre at the end of June, with motorcycles constituting 52 percent of that number. In the first half of this year, the government issued 10,864 new vehicle licenses, a 26 year-on-year rise. As of the end June, there were 88,509 motorcycles. Also during the first half of the year, there were 6,452 traffic accidents, a one percent increase year-on-year, with 2,252 victims and seven fatalities. Both the Gongbei Gate and Lotus Bridge logged 1.82 millions vehicles during the first six months of this year, a 15 percent year-on-year rise. The Macau International Airport reported 24,407 commercial flights during the first half of this year, a four percent year-on-year increase. Of these, 44 percent connected with the mainland and 34 percent connected with Taiwan. There were 8,446 Macau to Hong Kong chopper flights, a nine percent year-on-year rise and 1,532 flights between Macau and the mainland too. Ferry trips spiked seven percent to 42,775 percent between Macau and Hong Kong. Between Macau and the mainland, they rose 12 percent to 8,097.

Bridge report still stuck
A feasibility study on the proposed Hong Kong, Macau and Zhuhai bridge is nearing completion, according to reports. Two major sticking points continue to dog the negotiations: financing and the location of checkpoints. On the other side of the Pearl River Delta, progress is being made on the Hong Kong section of the Guangzhou to Shenzhen to Hong Kong Express link. The Lok Ma Chau Spur line opened last month and allows for vehicles or vessels transporting live fish from Guangdong to Hong Kong.

Macau Insurance Company given A rating
Macau Insurance Company Limited (MIC) and its subsidiary Macau Life Insurance Company Limited (MLIC) have recently been given an A financial strength rating (FSR) as well as an A issue credit rating (ICR) by A.M. Best Company – a full service credit rating organisation for the financial service, banking and insurance industries. The positive status is contributed to MIC’s solid risk-based capitalisation, entrenched business position and liquid investment portfolio, A.M announced. As of the end of 2006, MIC’s capital surplus reached MOP 189 million (US$ 24 million), owing largely to a capital injection of MOP 100 million (US$ 13 million). MIC’s subsidiary MLIC captured a 12.6 percent share of the life sector in 2006. At the end of the of 2006, the company had a strong position in Macau with a 30.8 percent market share.
Although the outlook for their ratings are stable, A.M. notes that in view of the current changing market environment, they are cautious about the impact of MIC’s continued growth on its underwriting profitability in the near to mid term.

Hong Kong workers seek Macau compensation
Hundreds of construction workers from Hong Kong have been swindled to labour illegally in Macau, according to claims. Recently, 13 Hong Kong workers went public, accusing that they were promised they could work on casino construction sites as technical instructors for 45 days without work permits. They were also assured that after the time limit expired, that they could work legally until their contracts were renewed. Instead, they were fired abruptly and are seeking compensation through Macau’s Labour Affairs Bureau. The bureau has responded by saying that since they were working illegally, they could face charges, and even fines up to MOP 20,000. In other words, Hong Kong’s construction workers – like those from the mainland -are falling pray to ruthless construction bosses and callous treatment from the Labour Affairs bureau, they claim. In related news, over 100 of Macau’s members of the Construction Site Workers General Union joined 600 union workers in Hong Kong in a march aimed at supporting fair wages and working hours.

IMF statistic system starts in Macau
Macau is now participating in the International Monetary Fund’s (IMF) General Data Dissemination System (GDDS). Established in 1997, the IMF’s GDDS programme provides a framework to assist countries develop their statistical systems for enhanced analysis and policymaking purposes. According to Robert Edwards, the Director of the IMF’s Statistics Department, Macau’s inclusion in the GDDS programme will allow the city to take full advantage of the system and greatly improve its statistic generating ability. Macau’s statistics can now be viewed on the IMF’s Dissemination Standards Bulletin Board or DSBB.

Mixed Q2 report for Melco-PBL
Melco-PBL reported second-quarter losses of US$69.2 million, up from US$27.2 million in the first quarter of 2007. They stated that amortisation charges and pre-opening expenditures were to blame for the loss. The company reported that their latest trophy casino Crown Macau booked US$ 26 million during its first 50-days of operations. The second-quarter at the Crown also saw net winnings from walk-in mass-market play hit US$ 7.18 million. Melco-PBL’s efforts to raise US$ 2.75 for its expansion also hit choppy waterd owing to turmoil in US credit markets last month.

Rumours about SJM casino in Australia
According to reports, speculation is rife in the Antipodes that Stanley Ho may seek to open a casino in New South Wales, Australia. Media in Australia have said that although issues of a casino license were informally raised by Stanley Ho at a luncheon last year, no formal discussions have ever taken place, nor were there subsequent discussions about the matter. Currently, Tabcorp’s Star City casino is seeking permission to extend its gaming license which they bought for in 1995 and expires this year. If the government rejects the Star City offer, it has the option not to extend its license, which would leave open the chance for the creation of a new lucrative license.

Gaming taxes hit MOP 13.93 billion
Macau’s tax rate saw a year-on-year rise of 49 percent to MOP 13.93 billion (US$ 1.74 billion) in direct taxes during the first half of 2007. According to Macau’s Finance Services Bureau (FSB), these gaming revenues accounted for 76.6 percent of the government’s total revenue during this period. Macau’s casinos coughed up 35 percent of their gross receipts as direct tax to the city.

Visa lift calms gaming investors
Casino stock investors need not fret so much say certain media – visa restrictions on the individual travel scheme have been relaxed for August, according to reports in the Chinese media. Since May when the individual travel scheme was suspended, investors have expressed concern that visa restrictions would put major dents into gaming profits. For the time being, the dual Hong Kong-Macau visas, formerly split one apiece for each SAR, have been combined again and allow visitors to visit both SARS at the same time. The news saw share prices rise slightly with Wynn shares up 3.1 percent to US$115.57, LVS up 1.4 percent to US$98.34 and Melco-PBL up 0.6 percent to US$ 13.16.

Galaxy baccarat tournament
The Galaxy StarWorld Hotel and Casino will begin an eight week King of Baccarat Competition beginning on September 15, according to the company. The tournament will feature the King of Baccarat competition – the winner of each preliminary round will receive HK$1,000,000 and qualify for the final Ultimate King of Baccarat tournament to take place on November 10 and 11 for a grand prize of HK$10,000,000. The registration fee for the King of Baccarat competition is HK$ 5,000 per person. The Ultimate King of Baccarat tournament’s registration fee is HK$50,000. Marketing head Felix Ling said, “StarWorld has been keen in developing creative business ideas. The StarWorld King of Baccarat Tournament would be a great example. In order to raise the excitement of the tournament, there will be a charitable tournament held during the Ultimate King of Baccarat tournament period. Celebrities will be invited to play at this event and StarWorld will donate HK$1 million for charity purposes”.

Aristocrat sees stiff  competition and possibilities
Goldman Sachs has recently announced that Aristocrat Technologies is facing near term hits as its main competitor, International Game Technology (IGT), gains strong sales in Macau and Japan. For their Japan market, Citigroup has forecasted that Aristocrat’s full-year sales would dip from 60,000 to 40,000 units. However, Citigroup is overall rosy about their prospects for 2008, with net profits perhaps rising 10.5 percent to US$115 million during the first half of the year. This year has been strong too, with Aristocrat profits jumping 15 percent in May and 20 percent in June, according to reports. In related news, Aristocrat has announced a development and distribution deal with US based Tech Results. The deal brings Aristocrat exclusive worldwide distribution rights to Tech Results products and will, the company claims, help catapult Aristocrat’s System 7000 PRIME solution.

Melco PBL raises bonds, extends peninsula deadline
Melco PBL Entertainment is seeking to raise US$ 250 million from a convertible bond sale to fund a share-buyback programme, according to reports. Melco PBL recently began issuing bonds that could be swapped for new shares from US$17.19 to US$18.42 apiece. Merrill Lynch arranged the bond sale, whose proceeds included a US$ 200 million initial offering and a US$ 50 million over-allotment option. The move was lauded by Morgan Stanley analyst Robert Hart. Melco PBL also announced an extension of the completion deadline for their boutique hotel on the Macau Peninsula to July of 2008.

A-Max’s bleeding Greek
Former LCD maker turned gaming firm A-Max is attempting to push into the high-roller market after bleeding HK$ 118.7 million in losses.  A-Max has been hurting since purchasing a 49 percent stake in the Greek Mythology casino. Last year, A-Max bought the stake from Ng Man-sun for HK$ 2.056 billion for the Taipa based casino inside the New Century Hotel. Of course, with three major casinos also opening last year – the Wynn, Galaxy and Grand Lisboa – the action is heating up, cutting the Greek’s net profit from 43 percent to HK$ 241.3 million. The previous year they’d pulled in HK$ 424 million. To turn the tide, A-Max’s 80 percent owned subsidiary AMA International Sociedade Unipessoal Limitada has signed 10 conditional agreements with junket operators over the past few months.

Eve of the Venetian
In the days leading up to the Venetian’s opening, the Las Vegas Sands Corporation reported that their net income dropped to US$ 34.4 million from US$ 109.3 million, from 31 cents per share to 10 cents per share. Expenses related to property openings in Macau, Singapore and the US were blamed for the company’s global profit fall of 69 percent. However, record levels of high-stakes places at the Sands Macao helped buoy profits by 3.1 percent year-on-year and 15.7 percent over the previous quarter to a record US$ 104.74 million. In the three months leading up to June 2007, revenue at the Sands Macao surged to a record US$ 373.5 million, a 21.6 percent year-on-year rise, and a 7.9 percent rise from the previous quarter. Over 60 percent of VIP gaming accounted for the house’s total table winnings.

Texas hold’em, Craps, VIP rooms at Grand Lisboa
The cards are ready to be dealt faster than a Texas tumbleweed – just as soon as the Macau Gaming Inspection and Coordination Bureau or DICJ approves of it. Of course, Texas hold’em poker is one of several new games on offer at the Grand Lisboa. Although the DICJ has yet to give the final stamp of approval for this simple game of cards, the Grand Lisboa has already received approval for a new craps table. They’ve also been approved for 29 VIP baccarat tables, which are spread over three rooms: the Ocho, Grand Neptune and Champion. Minimum bets are HK$ 1,000. The move is part of the Grand Lisboa’s strategy to offer more options as gaming appetites mature and diversify.

Austal ferries bought
Hong Kong based New World First Ferry Services (Macau) Limited
has accepted delivery of two 47.5 metre passenger catamarans, bringing the total number of Austal-built vessels in its fleet to seven. The two new catamarans strengthen the existing fleet and help increase sailings by nearly 20 percent to over 52 departures a day. First Ferry commenced operating between Hong Kong and Macau in September 2004.

More Southeast Asian visitors
The Macao Government Tourist Office (MGTO) issued a report that says they saw a 68.92 percent rise in visitors from South East Asia during the first half of 2007. They attribute the increase to the opening of direct air flights to Singapore, Thailand, Malaysia, and the Philippines. MGTO Director Manual Costa Antunes says the rise is part and parcel of Macau’s explosive growth of visitors of 12 million visitors during the first half of this year.

Commercial flights soar
The number of commercial flights at Macau’s International Airport soared to 24,407 at the end of June. The figure is an overall 4-percent year-on-year rise, according to the Statistics and Census Service (DSEC). They also reported that out of the total flights, Taiwan and the Chinese mainland were the major routes, amounting to 44 percent and 34 percent, respectively. However, the airport saw a 20 percent year-on-year drop in outward cargo weight, which fell to 33,495 tonnes during the first half of 2007.

Viva Manana
Macau based budget carrier Viva Macau abruptly cancelled their maiden Sydney route last month with less than 32-hours before take-off. Company officials blame the Macau aviation authorities for not filing out the correct paperwork and sending them to Australian aviation authorities. The airline is expecting the paper slip up to be amended and flights to begin “sometime soon”. Inconvenienced passengers were routed on alternative charter flights out of Hong Kong and the company has said they will refund passengers or schedule alternative flights.

Over 250,000 package tourists
State figures report that Macau witnessed over 250,000 package tourists in June. According to the Statistics and Census Service, the arrivals mark a year-on-year increase of 24.3 percent. Visitors from Taiwan saw an 86 percent year-on-year climb. By contrast, the number of group visits from the Chinese mainland stood at 148,319 for a year-on-year drop of 9 percent. Figures are also down for Macau residents traveling on package tours – a 5.6 percent drop in June 2007 over June 2006.

Mainland visitors fall 16.5 percent yet guests rise 20 percent
The figures are in – despite Guangdong province’s limitations on individual travel visas, which saw a 16.5 percent drop in visitors since the policy was implemented in May, Macau still witnessed 20 percent year-on year visitation growth in June. It also saw a 20 percent drop in revenues in June compared May, a major holiday month for China. Overall, from May to June, the number of mass-market gamblers fell by 7 percent but the number of high-rollers remained stable.

China’s young and wealthy on the move
Macau and Hong Kong are among the top places for young and wealthy Chinese to flock to and spend big, says MasterCard. According to the credit card company, China have more than 8.5 million affluent households by 2015 with 25 million people with a total “discretionary” budget of US$ 117. Of this demographic, more than 80 percent have university educations and have traveled abroad. After Macau and Hong Kong, Europe and the United States are among the more popular choices for them.

Per capita visitor spending rises
Official statistics report that Q2 expenditures averaged MOP 1,480 per visitor, a year-on-year rise of one percent. Visitors from the Chinese mainland accounted for the lion’s share of the spending with MOP 2,867 per person. Overall, per-capita shopping spending fell nine percent year-on-year to MOP 606 and per-capita non-shopping dropped to nine percent to MOP 875, according to Macau’s Statistics and Census Service.

Retail rising
During the first semester of the year, the estimated volume of retail business in Macau reached 6.38 billion patacas, an increase of 27 percent, according to official figures. The same numbers also shows that, in the second quarter only, retail sales grew 29 percent when compared with the same period last year, reaching a total of 3.28 billion patacas: watches and jewelry articles accounted for 14 percent of the business; 12 percent from trinkets and storehouses merchandise; automobiles, 11 percent; supermarket merchandise, 10 percent; adult garments, 9 percent and 5 percent from fuel for cars. Besides domestic consumption, the retail sector revenues good performance is also due to the growing number of visitors, which reached the 12.6 million mark, an increase of around 21 percent over the same period in 2006.

Bank rated stable for commercial property loans
Chong Hing Bank’s (CHB) focus on loans for commercial property projects in Macau and Hong Kong recently received a boost from Fitch Rating. Fitch recently affirmed CHB’s  long term foreign currency default rating at “BBB”, its short-term foreign currency rating at “F2″, an individual rate of “C”, a support rating of “3″ and rating floor at “BB”. In other words, they’ve been given a stable outlook. Fitch also reported that from 2005 to March 2007, CHB’s deposits and loans grew by 61 percent and 32 percent respectively. The bank is looking to expand its loan book for high consumer and security margin loans.

W Hotel headed for Cotai
Macao Studio City has announced that W Hotel will be joining the property’s team of “powerhouse investors”. W Hotel will offer over 563 guest rooms and suites, a state of the art fitness centre and feature their award winning “Whatever/Whenever 24-hour” concierge service. Additional facilities include an 11,000 square feet of meeting space, an outdoor heated pool and private cabana service. Named W Macao Studio City, its being fashioned by celebrity designer Charles Allem of Charles Allem Designs International.

China Merchants surge 159 percent
In their interim financial report for 2007, China Merchants Property Development Co. Ltd says that their operating revenue hit RMB 1.717 billion, a 104.91 percent year-on-year rise. They also witnessed operating profits hit RMB 511 million with a 188.53 percent spike. Net profits reached RMB 417 million, surging 158.94 percent. Reports also say that the company’s development and real-estate sales reached RMB 1.019 billion, soaring to 400.97 percent with a gross margin rise of 3.79 percent.

Hopewell Property getting paid
Sales of property in Macau and the Pearl River Delta are part of Hopewell Property’s net profit rise of 17 percent to HK$2.63 billion according to company officials. Owned by Sir Gordon Wu Ying-sheung, Hopewell’s investment in Macau’s Nova Taipa Gardens as well as Guangzhou’s New Town were part of the reasons for the boost. Revenues from Hopewell Highway Infrastructure were also part of the rise in revenue.

Investment residency applications
The Macau government approved 1,817 property investment residency applications in the first half of 2007. According to the executive director of the Macau Trade and Investment Promotion Institute (IPIM), Cheong, Chou Wing, the approvals involved  12,264 people during the first half of 2007. Prior to Edmund Ho Hau Wah’s pronouncement on April 14 that limited the residency investment scheme, approval rates were 85.2 percent, as opposed to 70.7 percent after the announcement. The suspension refers to only those applications received after April 4. The government suspended the scheme after concerns were voiced that it was driving up property prices. Last year, the government approved 2,636 property investment residency applications. Prior to the suspensions, applicants had to invest at least MOP 1 million in real-estate, set up a guaranteed seven years time of deposit, plunk at least a MOP 500,000 deposit in a local bank and hold a B.A. or equivalent academic degree.

Ponte 16 property pitch
A 10 to 20 percent stake in Pier 16 Property Development Ltd. is on the table for Japan’s Maruhan Corp. According to reports, Maruhan, who operate 218 pachinko parlours in Japan, will pay a HK$ 100 million deposit to Gold Sun Profits for the deal. Golden Sun is an indirect wholly-owned unit of Macau Success Ltd. (HKSE: 487) and owns a 100 percent stake of World Fortune Limited; which owns a 49 percent stake in Pier 16 Property. The deal would give Maruhan access to Pier 16 Property by allowing them to acquire a 20.5 to 41 percent stake in World Fortune.

Related Posts

• Macau News August 2007 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...
• Hong Kong Jockey Club Loses Out to Glitzy Macau Casinos The 124-year-old Hong Kong Jockey Club, whose racetrack revenues are one of the secrets of the territory's economic success, is facing a decidedly modern threat: glitzy casinos being built by...
• Illegal World Cup Betting Slams Macau Casino Stocks World Cup fever has taken a toll on businesses from Macau to London. According to Macau's Gaming Inspection and Coordination Bureau, the soccer games in South Africa have had the...

Related Websites

• Las Vegas Sands Says Singapore Site to Top Estimates By Beth Jinks Las Vegas Sands Corp., the casino company controlled by billionaire Sheldon Adelson, says its Singapore resort is set to exceed analysts' cash-flow projections this year as gamblers...
• Verizon Wireless Said to Start Offering IPhone in January [/caption] Verizon Wireless, the largest U.S. mobile-phone company, will start selling Apple Inc.’s iPhone next year, ending AT&T Inc.’s exclusive hold on the smartphone in the U.S., two people familiar...
• Hong Kong Missing Out on Macau Boom Hong Kongers like to feel superior to vice-ridden Macau. It is time to get over that because when it comes to tourism development, Hong Kong has a lot to learn...