Packer gets Crowned
Fitch Ratings will lower the credit rating for James Packer’s gambling concern – Crown Limited – after its decoupling from the PBL media group. Fitch said it would rate the debt of Crown at triple-B (BBB), a tad below its current standing. Crown owns a 37.86 percent stake in casino interests in Macau as well as the Crown Casino in Melbourne and the Burswood Casino in Perth, Australia, in addition to other gaming investments in the UK, US and Canada. Fitch justified the adjusted rating because even though Crown is ungeared, its debt levels will likely rise as it undertakes new investments in the medium term. “Credit metrics are expected to ultimately settle at levels commensurate with the BBB rating profile”, said Vicky Melbourne, a director of the Fitch corporate team.

Proud one-year-old
Galaxy Entertainment Group Limited celebrated the first anniversary of its first five-star entertainment, leisure and tourist hub last month – StarWorld Hotel and Casino. Galaxy Chairman Che-woo Lui said: “Looking back at the past year, StarWorld has lived up to our expectations. Since it was opened in October last year, it has attracted [the] patronage of one-third of all visitors to Macau, which means it has indeed become a new landmark of the city. Apart from having firmly established its brand and positioning, StarWorld also has a brilliant business score card to show. It managed to claim 12 percent of the gaming market in Macau after its opening. This not only reflects the prominence of StarWorld in the city’s gaming and entertainment industry, but also represents a major milestone in the development of Galaxy in the city”. For its first birthday, Galaxy is offering several special programs under the banner of “The 8 Super Cannons of Fabulous Gifts and Prizes”, such as: 1) Until 1 January of next year, the hotel will run its ‘StarWorld Million-Benz Lucky Mega Slot’ lucky draw. All StarWorld members and guests taking its shuttle can enter the raffle which shall run thrice daily and offers prizes worth up to HK$ 1 million (MOP 1.03 million) and a Mercedes-Benz, as well as high-value casino chips and cash gifts; and 2) Until 16 December, StarWorld privilege cardholders that earn 80,000 bonus points or higher at tables or slot machines will receive one ‘Get the Spin’ ticket which enables them to win cash prizes. Among those present for the celebratory dinner were Chief Executive Edmund Ho, famous model Monique Reis, Miss Universe 2007 Riyo Miro and Deputy Director of the Liaison Office of the Central People’s Government in the Macau, SAR.

SJM Grand Lisboa golf prizes
In early-November, the SJM Grand Lisboa Macau Golf and Country Club 2007 Club Championship was held. More than a hundred of the Club’s members partook in a weekend of socialising and fine dining, with trophies presented by SJM representatives – Frank McFadden, Angela Leong, Louis Ng, as well as the Club’s General Manager Wee Peng Siong. First prize trophies for women and men went to Raniasih Pomareda and Cliff Chen, respectively.

21, but not for blackjack
An age limit of 21 years for entering Macau casinos may be enacted next summer, according to Manuel Joaquim das Neves, head of the Gaming Inspection and Co-ordination Bureau: “We will create a special article of law regarding people under 21″. However, despite being the world’s fastest-growing gaming market, the city has a lack of gaming inspectors. According to Jano Vieira, president of the Inspection Association, the city would need a threefold increase from its present force of 157 inspectors and 90 assistants. Neves added that the SAR – under Chief Executive Edmund Ho Hau-wah’s instructions – is “working fast” on a bill to raise the existing age limit from 18 years because it would be impossible to let gaming expand indefinitely “otherwise social costs will mount”. However, Ho promised present casino workers below 21 that they would not face redundancy and would have a three-year grace period.

Crowning achievement
Melco PBL Entertainment’s CEO Lawrence Ho said the Crown Macau seeks cross-marketing opportunities between Crown properties. Ho told an investor briefing in mid-November that the Macau casino is beginning to see growth from those activities. Melco PBL – a joint venture between Hong Kong-based Melco and Australian-listed Publishing & Broadcasting Limited – earned total revenues of US$ 113.4 million (MOP 907.2 million) for the three months ending 30 September. Results filed with the NASDAQ in New York show Melco PBL suffered an overall loss of US$ 45 million for the same period.

Venetian Macao to use Harris’ signage
Harris Corporation an international information and communications technology provider (and a New York Stock Exchange listed company) will supply all digital signage for Las Vegas Sands Corp’s Venetian Macao-Resort-Hotel. With “InfoCaster” systems positioned all throughout the resort’s casino and conference facilities, Venetian Macao is Harris’ largest casino installation of InfoCaster “Digital Signage” solutions.

New partnership
Melco PBL Entertainment (Macau) Limited (which is a listed company on the NASDAQ exchange under the code “MPEL), an owner and developer of local casino gaming and entertainment resort facilities confirmed last month that one of its Macau subsidiaries – Melco PBL Gaming (Macau) Ltd, has entered into an agreement with Ama International Ltd, a gaming promoter licensed by the SAR. The agreement with Ama represents one of more than 20 which Melco PBL Gaming has entered into with licensed gaming promoters in Macau.

City of Dreams land concession
In early-November, Melco PBL Entertainment (Macau) Limited, stated it received an offer letter from the SAR’s Land, Public Works and Transport Bureau (DSSOPT) for a land lease agreement to be entered into with the government for the two adjacent land parcels on Cotai that comprise the City of Dreams site. The letter defined the premium and payment schedule for the site and stipulated development rights for the land concession. Melco’s subsidiaries accepted the terms on 6 November 2007. Upon receiving the required approvals and after the concession has been presented for public review and comment, Melco PBL Developments will make its first slated land payment. The City of Dreams’ construction and land costs are expected to be US$ 1.85 billion (MOP 14.8 billion) and US$ 279 million, respectively. The group has a US$ 1.75 billion ban credit facility to draw on. Co-Chairman and CEO of Melco PBL Entertainment Lawrence Ho said: “Our City of Dreams casino and resort will set a new benchmark for ‘must-see’ destinations in Asia. The rapid pace of construction progress on [the] site is exhilarating. Full praise is due to the efficiency and professionalism of the Macau government, the DSSOPT and our managing contractor and work site personnel”.

To gaming they come
In the third quarter of this year, 24 percent of employed individuals worked in gaming, entertainment and service-related jobs. 13.4 percent were employed in the construction industry, 12.7 percent in the wholesale and retail sector, and 11.7 percent in hotel, restaurant or catering posts. Clerks (which include casino croupiers and other gambling related jobs per the International Labour Organisation’s classification of all jobs) made up 27.2 percent of all local workers. Service and sales staff were 20.5 percent of the total employed pool and 17.3 percent of all local employees were deemed skilled labour. 19.7 percent of the employed population was college or university educated, 23.8 percent completed senior high school and 30.2 percent completed junior high school. Over a quarter of employees (26.2 percent) had a primary school education or below.

Vietnamese poker ace prevails with a pair of eights
Dinh ‘Daren’ Le won the recent PokerStars.net Asia Pacific Poker Tour Macau: Asia Poker Open (APPT Macau) on 26 November. His prize: A whopping US$ 222,640 (MOP 1,781,120). The 27-year-old Vietnamese concert promoter came to Macau with a friend, never thinking he would become a poker champion, let alone China’s first. It is worth noting that Dinh defeated his Singaporean opponent, Zong Wei ‘Ivan’ Tan, with an auspicious final hand – a pair of eights; the number is regarded as lucky in Chinese culture. “This tournament has been an incredible experience. I am honoured to be part of poker history today and very proud to become Macau’s first poker champion. I am looking forward to competing in Sydney next month and representing Vietnam at the APPT grand final”, said Dinh right after his victory. Dinh will join the APPT Seoul and Manila champions Ziv Bachar and Brett Parise, respectively, at the Grand Final at Star City Casino in Sydney, Australia, on 12-16 December. The Macau tournament commenced with a record 352 players from 37 countries – the largest in the history Asian poker. The field was reduced to nine players on the last day, as they contended for their share of a total of US$ 810,000. Some of poker heavyweights came to Macau for this year’s event, including the famed Team PokerStars Professionals 2005 World Champion Joe Hachem, who came in eighth and took home US$ 24,288. Also competing were 1998 World Champion Scotty Nguyen and Isabelle “No Mercy” Mercier. President of the PokerStars.net APPT Jeffrey Haas remarks on organising China’s first ever real money poker tournament were: “I am delighted to be launching tournament poker in Macau and excited that we have one of the most impressive final tables assembled in recent times. It really showcases how great this sport can be and the true strength of poker across the Asia Pacific region. Seeing so many players from so many countries demonstrates poker’s place in Macau, the gaming capital of the world”.

Fungi for a fun guy
On 1 December at his Hotel Grand Lisboa, Stanley Ho sucessfully bid US$ 330,000 (MOP 2,640,000) for a giant, 1.5 kilo truffle at the International Auction of the Tuscan Truffle. He stated: “Grand Lisboa is the co-organizer of this charity event in Macau, and I am pleased to lend it my biggest support. I am doubly pleased to be the owner of this unique truffle and be able to help the needy in society”. The auction in Macau raised a total of US$ 429,000 (MOP 3.43 million) and five charitable organisations each received cheques worth US$ 85,800. There were also three auctions for smaller Tuscan truffles that occurred simultaneously across the globe: At the Palazzo Medici Riccardi in Florence, Italy; in the restaurant of Giorgio Locatelli in London, UK; and at the Grand Lisboa.

Retail sector grows by a third
The total value of Macau’s retail sales reached 3.61 billion patacas in the third quarter of this year – a surge of 37 percent over the same period last year – according to the Statistics and Census Service (DSEC). Overall retail sales were up 10 percent over the second quarter. In the first three quarters of 2007, retail sales were 10 billion patacas: Up 30 percent from the same time last year. Sales of jewelry and watches (rose 50.58 percent over 2006) made up 16 percent of the total and amounted to 573 million patacas, above and beyond other types of goods. Running second were sales of motor vehicles (up 52.13 percent over the same time last year) which were 14 percent of the total. Tied for third place were supermarket and department store sales which each accounted for 10 percent of total retail sales. Most notable were adult apparel and cosmetics and sanitary products which both saw increases of 40.97 percent and 32.06 percent, respectively. Median monthly employment earnings for the retail and wholesale sectors stood at 6,062 patacas for the third quarter of 2007; a rise of 8.3 percent from the same quarter in 2006. The sector employed a total of 39,000 people in the third quarter of this year – a 12.8 percent spike over last year,

BCM chooses DSTi’s mutual fund system
Banco Commercial de Macau (BCM) became a member of the Dah Sing Group after its purchase by the latter which provides investment funds in Hong Kong. Dah Sing’s offerings include an array of funds such as lump sum and savings plans. Dah Sing also uses DST International’s (DSTi) HiTrust system. DSTi Asia Pacific CEO Rhonda Lepsch stated: “We are truly delighted to welcome BCM as DSTi’s first client in Macau. Dah Sing Bank has gained a reputation as one of the most progressive and innovative financial services groups in the Asia region. We are very pleased that the Dah Sing group of companies has selected DSTi’s HiTrust solution to support their business expansion in the region. With the accelerating growth of personal wealth in Asia, one of DSTi’s primary objectives is to provide solutions to the mutual fund and wealth management industries in Asia and to support the increasingly sophisticated and high volume processing requirements that are associated with this rapid growth”.

Tax break: 1.1 billion patacas
Chief Executive Edmund Ho vowed to focus on economic development and bettering the livelihoods of the city’s residents at his policy address before the Legislative Assembly in mid-November. “In the coming year, the government will continue to implement various measures for the benefit of the people, further propel economic development and create a prosperous society in conjunction with all quarters of society”, he said. One such measure was a tax concession package valued at more than 1.1 billion patacas on account of Macau’s huge growth this past year.

Workforce milestone
The third quarter of this year saw the total local workforce swell to an estimated 317,500; employment being 96.9 percent and unemployment at 3.1 percent. In the third quarter, 9,800 Macau residents were unemployed. The total labour pool increased by 13.6 percent in the third quarter over the same timeframe last year. Labour force participation was 70.4 percent in the third quarter of 2007 (66.3 percent in 2006) which is the highest the city has ever seen. Males made up 53.1 percent of employed persons in the same period and the median age of an employee was just over 39 years.

Feeling blue in the boom
20.8 percent of Macau’s unemployed workers had never been fully employed and were and were still looking for their first job in the third quarter of this year. 79.2 percent of the territory’s unemployed sought new employment. Approximately, 15.8 percent of the unemployed had a college or university education but 5.4 percent possessed either a pre-primary or no education. In the third quarter of 2007, 65.8 percent of the unemployed had looked for a position for fewer than four months and 11.7 percent had searched for over a year.

Dragon roars: but not in Portuguese
Local banking giant BCM Bank will cease its Portuguese-language Web-based “Net e-banking Service” effective 17 December. No clear reason was given for the termination of said service. BCM’s other Internet banking services will still operate.

Rise in number of registered businesses
Macau saw 875 new companies in the third quarter of this year – a year-on-year rise of 10.2 percent, according official numbers from the government’s Statistics and Census Service. The new entities registered possessed total capital of MOP 175 million (US$ 21.88 million). 30 percent of the businesses operate in the retail and wholesale sectors, followed by the business services sector (20.7 percent) and construction (17.5 percent). Of newly incorporated companies, 70.2 percent were established with a registered capital of 50,000 patacas.

Salaries keep soaring
In the third quarter of this year, Macau’s median monthly employment earnings rose to 7,867 patacas: A rise of 15.52 percent compared to the same period last year based on statistics from the Statistics and Census Service. Monthly employment income was up 2.1 percent from the second quarter of 2007. In comparison to the third quarter of 2000 – the first full year after the Macau Special Administrative Region’s establishment in December 1999 – monthly employment earnings for the third quarter of this year saw a 62.7 percent appreciation.

Deals hit 12 billion patacas
Figures from the local Finance Services Bureau indicate 11,274 real estate sale and purchase contracts (up 14 percent from 2006) were executed that were worth a total of 12.09 billion patacas (a rise of 42 percent from last year). In the third quarter of this year, 2,878 real estate sales and purchase contracts were executed for a total of 3,783 units – down 16.9 percent over the same period in 2006 and down 22 percent over the second quarter of this year.

More mortgage cash
In the first three quarters of this year, a total mortgage credit value of 87.28 billion patacas was granted – a 44 percent year-on-year rise. In the third quarter of 2007, the total value of mortgage credit was 26.94 billion patacas, of which 1.36 billion patacas was for property-related purchases. Compared with the second quarter of this year, total value of mortgage credits declined by 49.6 percent, while those connected to real estate purchases fell by 23 percent.

Macau realtors earn more
Macau’s real estate specialists received percentage pay increases that were double those of their peers in Hong Kong. A recent survey conducted by the Royal Institution of Chartered Surveyors and Macdonald & Co survey revealed that Macau dislodged the mainland from its top slot where middle- and senior-tier professionals received a 16.9 percent pay hike. Macau was ranked first, the mainland came second, Malaysia managed to be third and in fourth place was Hong Kong with a pay increase of 8.7 percent – up from 6.3 percent last year. Macau’s property professionals earn an average yearly salary of HK$ 748,000 (MOP 770,440) versus their Hong Kong counterparts who made an average HK$ 588,900 for the same period.

Fai Chi Kei land sale
Secretary for Transport and Public Works Lau Si Io told the Legislative Assembly earlier this month that there would be an auction for a plot of land in Fai Chi Kei, with further details forthcoming. His boss, Chief Executive Edmund Ho Hau Wah told the body during a question-and-answer session would resume public auctions for residential land development concessions later this month. Ho added that public land auctions would induce upward pressure on property prices and that buyers from outside the SAR were more financially advantaged than their local counterparts.

Viva Vietnam!
In mid-December, Macau’s international budget airline Viva Macau will commence direct flights from Ho Chi Minh City, Vietnam to Macau. The airline’s managing director Con Korfiatis stated there would be a return service four times a week on Monday, Wednesday, Friday and Sunday on its wide-bodied Boeing 767 aircraft. Viva’s maiden flight on the route is scheduled for 14 December. He added “Viva Macau will be the first and only direct flight between Ho Chi Minh City and Macau, an attractive destination where visitors may combine relaxation, entertainment and participate in events like seminars and conferences… It’s not only ‘Asia’s Las Vegas’, it also has multicultural charisma, a unique rich historical background and heritage, and convenient accessibility to major cities of the Pearl River Delta like Shenzhen”. Visas for the journey can be procured at the immigration gate with tickets starting at US$ 82 (MOP 656) for one-way tickets, exclusive of fees. An ongoing promotion requiring customers to book by 15 December for flights between 14 December and 31 January will afford them a US$ 50 discount on their return journey.

Jetting between the Lion and Lotus Cities just got easier
Jetstar Asia will commence flights between Macau and Singapore effective 2 February of next year. Jetstar Asia/Valuair’s CEO Chong Phit Lian stated: “Jetstar Asia is committed to growing its Pan Asia Network with Changi Airport Terminal One’s [in Singapore] excellent facilities as our hub. As we move into 2008, there will be more exciting developments in this area, including our interest and readiness to operate to Kuala Lumpur and other Malaysian cities once the rights are available”. Adding his thoughts to the matter were Director of the Macau Government Tourist Office who proffered: “The new Jetstar route will further attract visitors from Singapore to Macau, diversify Macau’s source market portfolio and strengthen connectivity between Singapore and Macau. This will result in more regional business and tourism development. We extend our open hand of friendship to visitors from Singapore and we are confident that our guests will experience our warm hospitality”.

Single visa
Hong Kong’s government will actively seek Beijing’s approval to permit mainland residents to visit both Macau and Hong Kong with a single visa, said Hong Kong’s Secretary for Labour and Welfare Matthew Cheung. Currently, mainlanders can visit Macau after their stay in Hong Kong but cannot visit both cities if coming from Macau. Such an arrangement would likely raise tourist arrivals from mainland China, but also enhance tourism cooperation between the two special administrative regions (SARs), he said at a Legislative Council motion debate. James Tien, chairman of the Liberal Party moved the original motion. Apart from single visas for mainland residents to visit both cities, Tien also proposed wider use of automated customs clearance and cooperation with Macau and Guangdong to train to middle and senior hotel and tourism managers. The motion was carried after two minor amendments by the Democratic Party’s Sin Chung-kai and the Hong Kong Federation of Trade Unions’ Wong Kwok-hing.

Hu to Ho: we’ve got your back
Chinese President Hu Jintao vowed to support the Macau Special Administrative Region (SAR) government and Edmund Ho Hau Wah, its chief executive. “The central government will fully support the Macao SAR government and its chief executive to administer the region in line with the law”, Hu stated at a meeting with Ho in Beijing; the latter came to deliver an annual report on his policies. The central authorities will adhere to the principle of “One Country, Two Systems” and “Macau people [shall] administer Macau” with a high degree of autonomy, as has been the case up until now, Hu maintained, adding “We have full confidence in Macau’s future development,” Hu added. Hu also praised Ho, the SAR government and the progress made by Macau since returning to the mainland’s fold in 1999, touting, especially, the city’s immense social and economic development.

Post-Portuguese ports
According to Chief Executive Edmund Ho Hau-wah, the territory plans to build at least one additional port to meet growing demand for transport services caused by the skyrocketing number of tourists. During a Legislative Assembly question-and-answer session, Ho said current air and sea transportation are insufficient. Although the government has earmarked funds to expand existing piers and install automatic customs checking systems, Ho indicated these were only short-term measures. He did not propose a specific date by which the new ports would be completed, saying only that one or two more ports would be necessary for the long-run. He also responded to criticism from legislator Chan Chak-mo who believed the government was too slow in improving transport infrastructure. Chan added it might be time to revise existing land laws as they have not kept up with modern development – in addition to being difficult to understand.

150 new taxis hit the streets
The Macau Municipal and Civic Affairs Institute got about 129.5 million patacas at the public tender offering of 150 taxi licenses which are valid for eight years. The new licenses will be issued upon payment of the bidding price and the newly licensed drivers must acquire a new vehicle to use specifically as a taxi. The winning proposals varied between 800,001 and 1.05 million patacas. The concession of 150 taxi licenses was the second one this year after last January when 50 licenses were put up for public offering and received 613 proposals ranging between 1.2 and 1.01 million patacas. The Macau Special Administrative Region now has 830 taxi vehicles in circulation, of which 80 posses temporary licenses that vary between eight and ten years. In recent years, difficulties in finding a free cab in Macau have worsened due to the opening of various casinos and the concentration of drivers next to entertainment venues where they can always guarantee clients and, eventually, better compensation for services rendered. With little more than 350 kilometers of roads, the Macau had, by September’s end, a total of 173,020 registered motor vehicles.

Macau keeps getter bigger
The SAR’s resident population hit 531,000 by the end of September – up 25,000 over the same period last year according to the Statistics and Census Service. Moreover, 1,200 live births were registered in the third quarter of 2007, an increase 20.8 percent over the second quarter. Mortality cases were 346 for the third quarter. For the same period, the territory registered 505 marriages – a decline of 4.7 percent over the second quarter of this year.

Illegal worker arrests up 25 percent in first three quarters of 2007
Macau police arrested 736 illegally imported labourers in the first nine months of this year: A rise of 25.1 percent over 2006, according to figures recently released by the Labour Affairs Bureau (LAB). The police and LAB conducted 684 raids on 792 construction sites in the first three quarters of 2007 and executed 14,000 identification checks. Employing illegal workers is punishable by fine in the SAR.

MPF for Macau?
Chief Executive Edmund Ho stated possibly establishing a non-mandatory central provident fund during his public policy adress last month, adding “snowballing social problems” plagued the city and admitting current estimates and efforts were inadequate in dealing with social problems related to Macau’s economic development. “There is lots of room for improvement when it comes to our judgment on new social developments and our ability to act early”, he said. Ho indicated the government would earmark part of its surplus to create a fund to enhance quality of life for retirees, adding. Under the proposed scheme, eligible residents could open certain accounts with governmental monies: The cash could be accessed open retirement. The purported “non-mandatory central provident fund” would cover all permanent Macau residents, though employers might not be required to contribute. Ho’s address did not explain what would occur if the fund ran a future deficit.

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