Just as we applaud casino here with suspect standing ovation, a recent article in the Wall Street Journal Asian edition by Kate O\u2019Keefe says that Macau saw its gambling revenue fall for the second-consecutive month in July. O\u2019Keeffe tells WSJ\u2019s Jake Lee why some of China\u2019s high rollers are holding their cards close, and their cash even closer. Here goes:<\/p>\n
\u201cHONG KONG\u2014Beijing\u2019s intensifying crackdown on corruption is hitting two of the playgrounds of China\u2019s elite: the VIP rooms at Macau casinos and luxury shopping malls in Hong Kong.<\/p>\n
\u201cCasino revenue in the world\u2019s gambling capital fell for a second-straight month in July, dropping 3.6 percent from a year earlier as high rollers from mainland China stayed away from the tables in Macau. In Hong Kong, sales of jewelry, watches and other luxury items dropped 28 percent in June, marking a fifth-straight monthly decline.<\/p>\n
\u201cThe retreat in Macau has been driven by the same VIP gamblers that powered the city\u2019s rise to the top in recent years. Revenue from these gamblers, typically rich Chinese who are brought to Macau by middlemen known as junkets, fell by between 14 percent and 18 percent in July, according to analysts at UBS. By contrast, in 2010 VIP revenue grew by 70 percent.<\/p>\n
\u201cAcross the Pearl River Delta in Hong Kong, the wealthy mainlanders who have packed the city\u2019s high-end stores have also been holding back. Sales of luxury goods fell by nearly a third in the second quarter, including a 40 percent plunge in April.<\/p>\n
\u201cAnalysts and industry executives said the Chinese government\u2019s fight against corruption is hitting both industries hard. With Beijing keeping a closer eye on conspicuous consumption and capital flight, being seen buying 10 diamond-encrusted watches or throwing millions at a baccarat game is not recommended.<\/p>\n
\u201cThis anticorruption crackdown in China is much more widespread and deeper than the VIP community had anticipated and as a result there could be prolonged weakness in the market,\u201d said Union Gaming Research analyst Grant Govertsen.<\/p>\n
\u201cThe ongoing anticorruption campaign is placing considerable focus on the illicit transfer of Chinese funds overseas. Macau is a significant factor in this,\u201d said Steve Vickers, a consultant who has investigated junkets and formerly led the Royal Hong Kong Police Criminal Intelligence Bureau.<\/p>\n
\u201cPreviously junkets had been most visibly affected by the campaign in late 2012 when Chinese police detained backers of one of Macau\u2019s then-largest junkets on suspicions they had ties to Bo Xi Lai, a prominent politician jailed in the crackdown. The crackdown has increased with Mr. Xi\u2019s rise.<\/p>\n
\u201cAll of a sudden the world is changing,\u201d said one top casino executive who deals with junkets. \u201cThe central government is much more concerned about junkets getting out of line.\u201d The situation is worrying both junket operators and their VIP customers, who \u201cdon\u2019t want to be involved with people who could get them in trouble,\u201d the person said.<\/p>\n
\u201cMacau, the only place in China where casino gambling is legal, has long relied on junkets to bring in high-spending gamblers from the mainland, issue them credit and collect players\u2019 debts in exchange for commissions from casinos. The system took root because Beijing limits how much money Chinese can take out of the mainland and doesn\u2019t consider gambling debts valid there.<\/p>\n
\u201cThe poor performance in Macau\u2019s VIP market has smacked casinos. The Macau units of Las Vegas Sands Corp. LVS -1.53 percent and Wynn Resorts Ltd. WYNN -1.48 percent both posted earnings last month that missed already-lowered analyst projections. The territory\u2019s four other gambling operators, including a unit of MGM Resorts International, are likely to also post weak earnings, according to analyst forecasts.\u201d<\/p>\n
This isn\u2019t to show animus on casino but a neutral article from WSJ Asian edition. It\u2019s good to think through its implications. Sadly, we\u2019ve used brawn over brain on an issue that should have been treated with due diligence.<\/p>\n
Mind-boggling change\u2026<\/strong> *** <\/p>\n I never went back to good old faithful (IBM typewriter) since shifting to a computer laptop in the mid-\u201980s. The new equipment was and still is the tool of the future. It even knocked out sending mail the old fashioned way. You don\u2019t have to go to the office to check you mail. You could do it from your iPhone! Surprising that even files of materials are sent via email! New tech stuff has also opened up a myriad of means for communications via what\u2019s known as the social media.<\/p>\n The technological advances now provide Skype conferencing, though it beats common sense why government officials still travel (at our expense). It must be difficult parting with bad and wasteful habits, again, at our expense. Or could we blame it on the \u201caura\u201d of self-importance, jetting across two oceans just to review proposals? Isn\u2019t reading and reviewing documents comprised primarily of reading? Failure to understand it doesn\u2019t prompt a trip abroad, does it? Email or Skype it, stupid! <\/p>\n It\u2019s time taxpayers begin demanding complete accountability!<\/p>\n Voters know issues too!<\/strong> And Da Boys are good spouting that they support the economy, education, health and other issues of significance. Challenge them into educated discussions and they begin to grope for words while quickly scanning for the closest exit door. Did someone say policy making? OMG! <\/p>\n","protected":false},"excerpt":{"rendered":" Just as we applaud casino here with suspect standing ovation, a recent article in the…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[256,169,338,529],"class_list":["post-44111","post","type-post","status-publish","format-standard","hentry","category-opinion","tag-casino","tag-china","tag-hong-kong","tag-macau"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/44111","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=44111"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/44111\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=44111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=44111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=44111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nDrastic change imposed by advances in information technology is both good and bad. It isn\u2019t bad per se in that it requires use of the thoughtful process to sift through changes and how they have affected traditional family settings. The challenge is in resolving derailment of once rock solid family communications and interaction at home. <\/p>\n
\nWith 29 legislators you\u2019d expect some reasoned answers to resolving the deepening economic disaster at home. We get nothing but ear-to-ear smiles of disconnection and disengagement. You press for realistic answers and they start scurrying to the closest empty room nearby. <\/p>\n