MB 86 | June 2011 by Macau Business

JUNE 2011

Economy & Finance 24 For personal profit Online securities trading is gaining popularity among retail investors 26 Crash cash Prepare to pay more for your car insurance

Property 36 Market watch After a strong performance in the first quarter, the real estate market has cooled down

Gaming 42 Billions race Another new record for local casinos 45 Stock watch Some investors eager to take profit after all-time peaks for gaming share prices 48 Old enough to know better Government rolls out bill to impose new age restrictions on people entering casinos 52 Next, please Galaxy doesn’t disclose its future plans for Cotai JUNE 2011

54 Going solo Steve Wynn willing to invest in casino in South Korea 56 Rising star Sydney’s Star City redevelopment aims at drawing in more high-rollers

Special 59 G2E Asia All you need to know about Asia’s biggest gaming trade show and conference

Ergonomics 106 Posture perfect Companies still do not create or enforce workplaces that meet ergonomic principles

Hospitality 108 Pale greenery No gold Green Hotel Awards for Macau’s establishments

MARCH JUNE 2011

JUNE 2011

130

Essential

Entertainment

113 Cars Your guide to the best rides

142 Happy birthday to us! Macau Business celebrates its seventh birthday 148 Charity in style International Ladies Club ball raises over MOP750,000

Arts & Culture 130 A modern madness Contemporary Chinese art is fast taking its place in the hearts of investors 136 Dance wonderland Introdans brings ballet to life for young audiences 138 Sounds of nostalgia The Macao Chinese Orchestra invites Portuguese fado singer Ricardo Ribeiro for a unique concert

Philanthropy 141 Seeking a cure Get to know the Adelson’s medical research foundation

Opinion 8 From the publisher’s desk Paulo A. Azevedo 11 Editorial Emanuel Graça 27 The tragedy of trade blindness Peter Sutherland 31 Zombie sex stereotypes Keith Morrison 41 Fighting on the wrong front José I. Duarte 58 Capital controls or protectionism Hector R. Torres 112 To a young hospitality worker Gustavo Cavaliere JUNE 2011

Sailing blind THE LACK OF COMPETENCE FROM TOP government officials doesn’t surprise me anymore. I’m used to it. But I do still worry and feel nervous when I witness so many wasted opportunities. There is money that could be invested in basic infrastructure or sustainable development but it isn’t. Instead it is left sitting in dusty vaults because there is seldom a worthy idea, enough courage or a hint of intelligence. Like I said, I struggle with attacks of nerves but I no longer suffer from tachycardia. What really irritates me is the nerve of people who think we are a bunch of gullible sheep, willing to swallow the next fable without complaint. For example, take the interview with Labour Affairs Bureau director Shuen Ka Hung published by the Macau Daily Times last month. Mr Shuen dismissed any hope of laws to permit the establishment of trade unions or regulate strikes. He said both rights were already safeguarded by the Basic Law. If a candidate for a bachelor’s degree in law had answered in such a fashion, dismissal from university would have been the only option. But since he is an official – and one that often provides us with this kind of entertainment – life goes on as if nothing happened. This impunity – or is it irresponsibility – is becoming an unpleasant routine. It is true that the right to strike and the possibility to create a trade union is contained within the Basic Law, our mini-constitution, but those matters need to be regulated in order for them to become feasible.

JUNE 2011

We need political will. The members of the Legislative Assembly should be ashamed of themselves and should stop voting against repeated attempts to regulate the establishment of unions. Why do they insist on voting down the feeble attempts that have graced the floor? Mr Shuen could provide an explanation but I don’t think he will. So, I’m happy to offer an explanation on his behalf. The vast majority of legislators are businessmen. Allowing workers to exercise their rights would create problems inside their companies. It is natural that they would oppose any such moves. If we had a democratic regime and each legislator had to win votes from the electorate, it would be a different story. It is clearly advantageous from the bosses’ perspective to have workers’ associations dependent on subsidies and other perks from the government. Can you imagine the headaches if they were independent and legally regulated? It shouldn’t come as any surprise to hear the president of the Legislative Assembly say it is not the right moment to have the government-owned, free-to-air television station broadcast the legislators’ debates. Naturally, the denial has nothing to do with the “afternoon naps” that some legislators insist on taking during sessions, or with some of the nonsense they may say. Why would they change when there is no need to legitimise their opinions against a popular vote. Televising debates would also throw up some interesting political puzzles.

We need political will. The members of the Legislative Assembly should be ashamed of themselves and should stop voting against repeated attempts to regulate the establishment of unions According to the Basic Law, Chinese is the official language. So, which flavour would we use? Would it be Mandarin, the language that unites the mainland, or Cantonese, the dialect that is traditionally spoken here? “Not opportune” is the opportune answer. The lack of political courage provides opportunities such as this one.

It’s a jungle If there were a little shame and civility in Macau, nonresident workers would not be exploited the way they are. They might be permitted to quit one job to find another, no matter the reason and without a six-month wait, unlike the current miserable law dictates. It is true the law says an employee fired without just cause need not wait six months but they must still prove that their boss had no lawful motive to kick them out. A worker with limited finances is unlikely to have the means to uphold his or her rights, and it is that lack of resources which leaves them at the mercy of less scrupulous bosses. This is a law which exists in a city that claims to be civilized, multicultural and open. It shames us all. In a city where people talk about “losing face”, what “face” or honour can there be in exploiting the weak? This, ladies and gentlemen, is not capitalism. This is pure savagery.

Oops, they’ve done it again One of the most peculiar cases of the past month has been the earful the Polytechnic Institute got from the Commission Against Corruption. According to the graft buster, the institute has serious deficiencies in regulating its internal structures. Similar problems could surely be found in other public bodies, particularly those which enjoy financial

autonomy from the government. I suspect there would not be enough manpower to take on the inquiries. What is curious about this whole affair is that the apparent wrongdoings stem from the lack of a muchneeded revision of the institute’s statutes. The institute itself swears it has been trying to do so since 2003 but has been unsuccessful in winning government approval. The government, which is now correctly censoring the institute in the wake of the report, is once again the victim of its own inaction. Where have we seen this story before?

Speeding budget What could I possibly say about last month’s Commission of Audit report on the first phase of the light rail transit system, a project managed by the Transportation Infrastructure Office? Major construction has not yet begun and a project that was initially budgeted to cost just over MOP4 billion (US$500 million) is already estimated at twice that amount. There is more to come too. Some major goods and services contracts in the project were initially budgeted to cost zero patacas. Perhaps I’m paranoid, and I might be mistaken, but I believe this story is going to have a very unhappy ending. I’m not too concerned about the apparent inability of the transportation office to do its job properly, but I do worry about what can be done to avoid these not-so unusual budgeting mistakes from being repeated. With an alarmingly high number of cases that have caused concern in the past month – from Mr Shuen’s blunders to reports from the audit commission and the graft buster – could it be a sign that we are sailing blind?

JUNE 2011

Emanuel GraĂ§a Editor-in-Chief

emanuel.graca@macaubusiness.com

Not unfriendly, just timid

Unlike in the mainland, where the central government has put the environment at the top of its agenda, in Macau the authorities have shown a lack of will to press for stricter regulations

IF YOU ARE A REGULAR READER OF Macau Business, you are sure to have noticed that over the past year we have increased our coverage of environmental issues. Our goal is to show what is being done by local companies to reduce their carbon footprint and to report on new business opportunities emerging in the green sector. Arguably, the hotel industry is leading the way in environmental best practices (while also remaining one of the biggest consumers of energy and water). There are reasons for this. First, several of the worldâ&#x20AC;&#x2122;s biggest hospitality companies have a presence in Macau, and they bring with them international standards for saving water and energy. Besides, these international players are not short-sighted: their long experience worldwide has made them realise that being environmentally friendly can buoy up the bottom line in the long run. Unfortunately, apart from the hotels, there are very few businesses in Macau that set a good example. Unlike in the mainland, where the central government has put the environment at the top of its agenda, in Macau the authorities have shown a lack of will to press for stricter regulations. Here, the official line prefers to emphasise education and promotion. But promotion alone will have a limited effect. In some industries, it will not persuade businesses to adopt greener practices. Such practices are expensive and do not necessarily entail savings. A company that adopts them is likely to be at a competitive disadvantage because its costs will go up. Just consider the take-away eateries that are so popular in Macau. If one such outlet replaced the cheap foam lunch boxes with a more eco-friendly option it would mean extra costs. Because many small eateries already have slim profit margins, it could lead to business losses, unless the cost is passed on

to customers. But since most customers are price sensitive, it is likely that they would go to cheaper competitors instead. However, if the standard were to be set by industry regulations that all players had to comply with, companies would not have to risk being at a competitive disadvantage in trying to be more environmentally friendly.

Unplugged Unfortunately, the government seems not to understand this basic rule of economics. Or it simply does not want to risk pushing ahead with policies that are likely to face criticism, even if they are the right thing to do. Worse, the local authorities are unable even to regulate untapped areas of green business in which Macau could set an example to the world. A clear case is electric cars. The government has been studying the idea for years, but so far nothing has been done. A handful of companies interested in importing such cars are still waiting for the green light. Macau, according to several experts, would be an ideal place for electric cars. First, the city is small, and most cars are not allowed to cross the border into the mainland. This means the battery endurance problem is a non-issue here, where most vehicles cover distances well below 100 km per day. Second, owning or renting a private parking spot is quite common among car owners, and the city has several public car parks. This means it would not be hard to install charging stations in convenient places. But the local authorities continue to study the electric car as if it was something completely new, failing to realise that such vehicles are already regulated in several markets. The regulators have already lost one good opportunity to make a difference: the recent public bus service tender should have included stricter provisions to protect the environment. JUNE 2011

VOL.1 Nº86

Editorial Council Paulo A. Azevedo, Albano Martins, Duncan Davidson, Herman He Founder and Publisher Paulo A. Azevedo pazevedo@macaubusiness.com

Editor-in-Chief Emanuel Graça emanuel.graca@macaubusiness.com

Executive Director Business Development Luis Pereira

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Regular Contributors Branko Milanovic, David Cheung, David Green, Dominique Moisi, Eswar Prasad, Frank J. Fahrenkopf Jr., Gustavo Cavaliere, Hideaki Kaneda, José António Ocampo, José Sales Marques, Joseph Stiglitz, Leanda Lee, Keith Morrison, Kenneth Rogoff, Kenneth Tsang, Marvin Goodfriend, Pan Yue, Paulo J. Zak, Peter Singer, Ricardo Andorinho, Richard Whitfield, Rodrigo de Rato, Robert J. Shiller, Sin-ming Shaw, Sudhir Kalé, Sun Shuyun, Vishakha N. Desai, Wenran Jiang

Hong Kong Bureau Michael Hoare (Chief), Anil Stephen

Advertising Xu Yu, Irene

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Property Editor Alan Tso tsoalan@yahoo.com.hk

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Europe Bureau Joyce Pina (Chief)

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Contributing Editors Alexandra Lages, Carlos Picassinos, Christina Yang Ting Yan, Derek Proctor (Bangkok), Filipa Queiroz, Joana Freitas, João Francisco Pinto, José Carlos Matias, Kahon Chan, Kim Lyon, Lois Iwase, Luciana Leitão, Ray Chan, Sara Farr, Sara Silva Moreira, Sofia Jesus, Steven Chan, Tiago Azevedo, Wu Yu

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Fancy figures Gross domestic product continues to soar acau’s gross domestic product (GDP) for the first quarter of 2011 expanded by 21.5 percent yearon-year in real terms, according to official data. The increment is attributable to the growth of the gaming industry, besides increases in investment and private consumption.

Furthermore, GDP growth for 2010 was revised upward from 26.2 percent to 26.4 percent in real terms. In the first quarter of 2011, private consumption expenditure increased by 12.6 percent, spurred on by the impetus of the continuously booming tourism and gaming sectors, a rise in total employment and income, as well as the

Creative Pavilion gets second phase A second phase for the Macao Creative Pavilion was announced last month, after the positive response from its inaugural phase, the Cultural Affairs Bureau said. Sales in the pavilion’s first month reached MOP88,000 (US$11,000) and in the second month exceeded MOP100,000, representing a 34 percent increase. The project’s first phase comes to a close on June 30, with a second phase scheduled to begin on July 5 and continue until September 30. The Macao Creative Pavilion is located on the first floor of the Tourism and Culture Activity Centre (the yellow house in front of the Ruins of St. Paul’s). It serves not only as a showcase for products designed and made by Macau creative talent, but also as a place to sell them. JUNE 2011

low unemployment rate. Gross fixed capital formation, the gauge of investment, expanded by 28.4 percent. Private investment grew by 28.4 percent, with construction investment and equipment investment increasing by 26.1 percent and 32.3 percent respectively. Government investment increased by 32.2 percent.

Unemployment rate holds stable The unemployment rate for February-April 2011 was 2.7 percent, remaining unchanged from the previous period (January-March 2011), according to official data. The number of unemployed held stable at 8,900, with 4.2 percent being fresh labour force entrants searching for their first job. The total labour force during the period was 334,000.

Natural gas supply off Starting June 1, the supply of natural gas from the mainland to Macau has been suspended, the government announced. The suspension period is expected to last 190 days, more than half a year. The government said the disruption in supply is related to construction works at Hengqin Island. “During the supply suspension period, the government will coordinate work between all parties involved and implement the necessary measures to meet the peak demand for electricity in the summer, in order to reduce the impact,” local authorities said in a press release.

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series. Each programme is designed specifically for team members. The goal is to boost staff morale through interactive activities. They are quite diverse, in order to cater to everyone’s interests. There is the myClub initiative, a series of membership-based interest groups designed to help staff to chill out, including a range of recreational and sports activities. Sands China Ltd myClub team members also enjoy exclusive discounts on a wide variety of goods and services at more than 150 selected outlets in Macau through the myDiscount employee engagement programme. Being one of the biggest companies in Macau, Sands China Ltd employs a culturally diverse team. The company celebrates that diversity though its myFestival employee engagement programme, which lets team members experience other cultures through the culinary delights of their colleague’s home country. Another employee engagement programme available at Sands China Ltd is myWorkshop. Jointly organised by human resources and a rotation of departments within the company, the programme offers a series of free workshops dedicated to enriching team member’s life experience, offering them the chance to acquire basic know-how about topics of their interest. Sands China Ltd believes giving its team members the recognition they deserve throughout all these initiatives is a fundamental part of its mission. Success is a team effort.

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Property | Market Watch

Hot and cold Housing sales recorded significant increases in the first quarter but refreshed measures to curb speculation have slashed appetites fter three months of strong performances, the real estate market has cooled, responding to new government measures in late April to cut speculative investing. Data from Ricacorp (Macau) Properties says no transactions were made in the first two weeks after the government announcement and sales of prime properties on the peninsula and Coloane

have dropped by 95 percent. “In the first four months of 2011, the trading volume and price of Macau’s property market was surging. Many buyers purchased properties for long-term investment, reflecting [that] the general public was confident in the market,” says Ricacorp executive director Jane Liu. She adds the peak is also explained by a second factor. “There were no large-

scale properties launched in Macau for nearly a year.” Since February several developers had been mounting pre-construction sales campaigns. There were 2,225 residential transactions in March, 48 percent more than last year, according to the most recent information from the Statistics and Census Service. Housing transactions were worth MOP7.7 billion (US$963 million), a 175-percent rise. The number of transactions in the primary market reached 1,209 – a 270-percent increase – with a combined value of MOP5.9 billion or a 374-percent increase. The big increases were largely due to sales in the second phase of the One Oasis Cotai South development in Coloane. The Financial Services Bureau says

Photo: LuĂs Almoster

Residential units sold as per record of stamp duty* Year 2010

Psychological pressure The market lost momentum after the government announced a new round of measures to curb real estate speculation on April 20, as reported by Macau Business. The big news was the introduction of a special stamp duty. The proposal, which still needs to be approved by the Legislative Assembly, is to levy a 20-percent duty on the resale of any property sold within a year of its purchase. The levy falls to 10 percent if the

2011

Value of residential units sold as per record of stamp duty*

Month

Year

Month

January

2010

January

Number of Transactions 1,297 February 1,084 March 1,503 April 2,202 May 1,627 June 1,543 July 1,204 August 940 September 1,505 October 1,312 November 1,818 December 1,954 January 1,541 February 788 March 2,225

February March April May June July August September October November December 2011

January February March

* Notes: 1. The data includes transactions of residential units exempted from stamp duty. 2. The data covers residential units with stamp duty paid during the reporting month.

Value (MOP million) 3,140 1,995 2,806 6,180 4,281 3,319 2,642 1,889 3,687 3,421 7,569 5,010 3,790 1,918 7,704

Source: DSEC

the average price per square metre of residential space was MOP48,474 in March, 63 percent more than a year before and 24 percent more than in February. In the first quarter, 4,554 residences were sold, 17 percent more than a year before, for a total of MOP13.41 billion.

Property | Market Watch

Average transaction value of residential properties as per record of stamp duty Value (MOP thousand) 5,000

Total number of buyers in residential transactions in the first three months of 2011:

6,283

4,000 3,000

Proportion of buyers

2,000

13%

Source: DSEC

1,000 0

Non-Residents

87% Residents

Jan

Feb

Mar

Apr

May

Jun Jul 2010

Aug

Sep

Oct

Nov

Dec

Jan

Feb 2011

Mar

* Notes: 1. The data includes transactions of residential units exempted from stamp duty. 2. The data covers residential units with stamp duty paid during the reporting month.

Source: Financial Services Bureau

Average transaction price of residential units per square metre 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

Total value of residential transactions in the first three months of 2011:

13,413,176,000

MOP

Proportion of buyers

20% 80%

Non-Residents

Residents

Jan

Feb

Mar

Apr

May

Jun Jul 2010

Aug

Sep

Oct

Nov

Dec

Jan

Feb 2011

Mar

* Notes: 1. The data includes transactions of residential units exempted from stamp duty. 2. The data covers residential units with stamp duty bill issued during the reporting month. 3. Some residential units may not be included in the data made available by the Financial Services Bureau for privacy reasons.

sale takes place between one and two years after purchase. The property market “rapidly cooled down” after the plan was announced, says Ms Liu. She says most of the new policies are still at the proposal stage with details yet to be discussed. “Nevertheless, these uncertainties resulted in enormous psychological pressure on the market, making sellers and buyers hold off trading.” One measure that will take effect in the middle of this month is a set of guidelines for pre-construction sales. In a win for homebuyers, the government says developers will be asked to give more information about the flat and the building, including an expected completion date. Details of property management and maintenance arrangements should also be included in contracts for pre-construction sales. Also later this month, the government plans to list pre-construction property available for sale in a new online database. JUNE 2011

Fund sells One Central flats

acau Property Opportunities Fund Ltd., managed by Sniper Capital Ltd., has agreed on terms to sell 10 apartments at One Central Residences in the One Central complex. The apartments are not at the fund’s premium residential property, The Waterside, but are part of a portfolio of 25 apartments it bought in October 2007. The sale reduces the weight of One Central Residences in the fund’s portfolio, which

had increased after the company’s recent US$41 million (MOP328 million) exit from its entry-level residential development, Rua do Laboratório. The 10 apartments have been sold to individual mainland Chinese or Macau buyers for a combined total of HK$165 million or an average of HK$7,600 per square foot. The deal represents a net profit of HK$9 million and a return on investment of 6 percent after costs.

Downtown office and retail tower traded

eal estate investment firm Westport Capital Partners LLC announced that affiliates of Westport and Tenacity Real Estate Group, a Hong Kong developer, have completed the sale of an office and retail building in Macau to an undisclosed buyer for HK$970 million. The building, 39 Macau, is a 25-storey, 29,450-square-metre tower located in Avenida Almeida Ribeiro that includes a fourstorey retail area and a 95-space car park.

Westport and Tenacity acquired the property in the third quarter of 2006. During their ownership, they completed an HK$80 million renovation to bring the building’s office space up to Class A international standards and to increase the amount of retail space. The partnership said it was able to lease 87 percent of the space in the building, including all the retail space, during its ownership.

Property | Market Watch

AVERAGE TRANSACTION PRICE PER SQUARE METRE OF RESIDENTIAL UNITS BY DISTRICT AS PER STAMP DUTY RECORDS

Source: DSEC

(MOP) District

2009

2010

2011

Macau

18,928

24,154

25,631

26,845

32,026

30,347

33,397

38,261

Macau Peninsula Ilha Verde Tamagnini Barbosa Areia Preta and Iao Hon Areia Preta new reclamation zone (NATAP) Mรณng Hรก and Reservoir Fai Chi Kei Lamau Docks Horta e Costa and Ouvidor Arriaga Barca Patane and Sรฃo Paulo Conselheiro Ferreira de Almeida Ferreira do Amaral (Guia) ZAPE NAPE and Praia Grande Bay reclamation area Downtown Macau Barra / Manduco Praia Grande and Penha

17,794 15,418 10,181 11,155 22,859 13,799 13,475 23,988 16,231 11,473 12,013 13,093 18,584 17,659 39,577 11,631 9,121 16,954

24,158 18,043 13,333 14,845 26,866 18,617 16,565 30,006 21,308 15,805 17,739 16,100 19,661 17,873 51,296 13,945 13,280 17,561

25,415 22,988 20,225 20,123 30,199 21,637 21,180 28,727 23,033 23,457 18,330 19,712 22,541 18,776 52,266 16,814 15,749 24,523

26,674 22,182 19,942 19,812 32,307 20,993 22,744 28,151 25,261 19,396 19,107 21,020 20,308 16,011 59,793 19,931 16,556 21,153

27,603 23,108 25,141 22,857 34,413 25,145 24,895 29,157 25,745 18,875 20,538 20,476 25,713 19,620 48,445 19,383 26,676 24,888

29,517 24,524 25,886 21,887 34,615 23,506 25,437 28,099 28,603 18,849 20,990 21,948 24,953 20,705 58,820 18,223 23,058 32,955

29,664 27,365 27,819 22,519 32,314 26,495 24,072 34,437 29,111 21,853 21,387 23,371 27,565 24,399 51,835 20,742 27,491 37,988

37,159 40,402 26,959 28,581 43,266 30,706 28,762 36,867 32,437 25,714 23,271 27,004 26,267 28,915 67,891 27,878 30,973 35,151

Taipa Ocean Gardens and Taipa Pequena Downtown Taipa University and Pac On Bay Pac On and Taipa Grande City and Jockey Club

22,366 21,838 22,685 17,794 ~ 15,339

23,897 24,851 23,980 18,711 34,361 14,912

26,432 27,733 26,055 21,611 49,628 17,594

27,342 27,893 27,255 20,774 54,776 15,876

28,372 29,608 28,366 21,897 50,445 27,062

29,583 31,888 28,280 26,228 57,185 26,654

39,876 28,837 41,527 22,054 56,702 27,596

33,402 35,102 31,750 26,991 82,688 27,346

Coloane

20,588

17,188

20,120

25,778

59,509

64,087

64,398

67,484

Notes: 1. The above information covers building units with stamp duty paid in the reference quarter 2. Including residential units that were exempt from the payment of stamp duty ~ No figure provided/confidential data

AVERAGE TRANSACTION PRICE PER SQUARE METRE OF OFFICE UNITS BY MAIN DISTRICT AS PER STAMP DUTY RECORDS (MOP) District Macau ZAPE NAPE and Praia Grande Bay reclamation area Downtown Macau Praia Grande and Penha

2009

2010

2011

19,556 18,054 21,230 ~ ~

20,049 20,213 22,778 11,043 ~

23,177 19,793 25,233 14,309 16,540

23,740 18,869 28,486 23,186 ~

22,169 16,896 22,252 28,838 ~

23,374 18,839 27,940 16,305 ~

27,078 32,046 27,802 25,801 ~

27,700 27,393 30,819 ~ 19,649

Notes: Only covers office buildings with ten storeys or higher ~ No figure provided/confidential data JUNE 2011

4040

Property | Market Watch

Notable residential property transactions - 16/04 to 15/05, 2011 District

Property

Unit

Taipa Taipa Macau Macau Macau Macau Macau Macau Taipa Taipa Taipa Taipa Macau Taipa Macau Macau Macau Macau Macau Macau Taipa Taipa Taipa Coloane Macau Macau Taipa Macau Taipa Macau Taipa Macau Taipa Macau Macau Taipa Taipa

One Grantai One Grantai One Central One Central One Central Lake View Tower One Central One Central Buckingham One Grantai One Grantai Jardins do Oceano The Residencia Nova City L’Arc One Central The Residencia Lake View Tower One Central Villa de Mer Nova City Nova City Supreme Flower City One Oasis Cotai South Villa de Mer Villa de Mer Kings Ville Lake View Tower Prince Flower City Lake View Tower Kings Ville One Central Nova City Lake View Tower Lake View Tower Nova City Kings Ville

Block 6, M/F, unit W Block 5, M/F, unit T Block 4, H/F, unit A Block 2, M/F, unit B Block 2, H/F, unit A L/F, unit Q Block 1, H/F, unit E Block 1, H/F, unit F H/F, unit C Block 3, M/F, unit J Block 3, M/F, unit J Pine Court, L/F, unit A Block 5, M/F, unit A Block 5, L/F, unit A H/F. unit C Block 7, M/F, unit F Block 1, M/F, unit B L/F, unit K Block 7, H/F, unit A M/F, unit A Block 9, H/F, unit C Block 9, H/F, unit C H/F, unit C Block 6, L/F, unit E L/F, unit B L/F, unit A Block 2, M/F, unit E H/F, unit C Block 3, H/F, unit M H/F, unit C Block 1, H/F, unit B Block 1, H/F, unit C Block 9, H/F, unit B M/F, unit F M/F, unit D Block 11, H/F, unit B Block 3, H/F, unit G

Source: Ricacorp & Midland

Floor area (sq. ft)

Sale price (HK$)

Price per sq.ft. (HK$)

2,980 2,980 2,326 2,267 2,269 2,518 1,819 1,759 2,288 2,018 2,019 3,200 1,690 2,505 1,821 1,301 1,693 1,668 1,269 1,703 1,973 1,973 2,060 1,639 1,695 1,703 1,901 1,515 1,645 1,515 1,801 918 1,983 1,428 1,497 1,983 1,599

20,264,000 18,774,000 17,560,000 17,000,000 16,800,000 16,000,000 14,310,000 13,230,000 12,812,800 12,660,000 12,520,000 10,900,000 9,295,000 9,000,000 8,800,000 8,710,000 8,680,000 8,674,000 8,620,000 8,174,000 8,020,000 8,020,000 7,900,000 7,812,000 7,690,000 7,670,000 7,500,000 6,893,000 6,880,000 6,824,000 6,800,000 6,660,000 6,580,000 6,570,000 6,510,000 6,380,000 6,300,000

6,800 6,300 7,549 7,499 7,404 6,354 7,867 7,521 5,600 6,274 6,201 3,406 5,500 3,593 4,833 6,695 5,127 5,200 6,793 4,800 4,065 4,065 3,835 4,766 4,537 4,504 3,945 4,550 4,182 4,504 3,776 7,255 3,318 4,601 4,349 3,217 3,940

Note: L/F - Low floor; M/F - Middle floor; H/F - High floor

Notable residential property rentals - 16/04 to 15/05, 2011 District

Property

Unit

Macau Macau Macau Macau Macau Macau Macau Macau Macau Taipa Taipa Taipa Macau Taipa Taipa Taipa Taipa Macau Taipa Taipa Taipa Taipa Taipa Taipa Taipa Macau Taipa

L’Arc One Central One Central One Central One Central One Central One Central Lake View Tower The Residencia Prince Flower City Nova City Prince Flower City The Praia Nova City Nova City Kings Ville Chun U Villa Edf. Pak Tak Kings Ville The Pacifica Garden Chun U Villa Nova City Edf. Tou Un Edf. Mei Keng Garden Chun U Villa The Praia Chun U Villa

H/F, unit B Block 4, H/F, unit B Block 4, H/F, unit B Block 4, H/F, unit A Block 7, L/F, unit B Block 7, H/F, unit B Block 7, L/F, unit A M/F, unit I Block 4, M/F, unit A Block 1, H/F, unit A Block 7, M/F, unit C Block 2, M/F, unit N Block 1, M/F, unit D Block 13, M/F, unit D Block 4, M/F, unit F Block 1, H/F, unit C M/F, unit E L/F, unit AB Block 3, M/F, unit J Block 2, M/F, unit H M/F, unit A Block 1, L/F, unit F M/F, unit E Block 3, L/F, unit L M/F, unit D Block 1, H/F, unit B H/F, unit B

Source: Ricacorp & Midland

Floor area (sq. ft) 2,803 2,528 2,585 2,326 1,269 1,269 1,269 1,237 1,693 1,665 1,974 1,522 1,558 1,559 1,339 1,422 1,612 1,680 2,015 1,205 1,979 1,336 1,228 1,600 1,979 1,239 1,586

Rent price (HK$) 36,000 35,000 35,000 33,000 21,000 20,000 20,000 16,000 15,000 14,000 14,000 12,000 12,000 12,000 11,000 11,000 11,000 11,000 11,000 10,500 10,000 9,500 8,500 8,500 8,500 8,300 8,000

Price per sq.ft. (HK$) 12.84 13.84 13.54 14.19 16.55 15.76 15.76 12.93 8.86 8.41 7.09 7.88 7.70 7.70 8.22 7.74 6.82 6.55 5.46 8.71 5.05 7.11 6.92 5.31 4.30 6.70 5.04

Note: L/F - Low floor; M/F - Middle floor; H/F - High floor

JUNE 2011

JOSÉ I. DUARTE ECONOMIST, MACAU BUSINESS SENIOR ANALYST - jid@macaubusiness.com

Fighting on the wrong front IMPOSING A MINIMUM WAGE IS NOT THE RIGHT WAY TO FIGHT EITHER POVERTY OR INCOME INEQUALITY he government recently reaffirmed its intention to contemplate the introduction of a minimum wage. It will be asking academics to study the subject. There is nothing wrong with that, and I will not try to anticipate the outcome. But no matter how scientific or objective the study, nothing can change the fact that this is a political matter. There is no such thing as a scientifically fixed minimum wage. Generally, no kind of policy choice can be said to be “scientific”. Everything must be judged in the light of its objective and on the merits of its supporting arguments, and proper consideration must be given to the legitimate but often contradictory interests at stake. This is politics, not science. Setting a minimum wage is a difficult and emotionally charged task. Reasoned debate and arguments based on evidence are seldom heard. Most people are strongly in favour or strongly against, often for simple, if not simplistic, reasons. So ingrained are their beliefs that arguments easily degenerate into name-calling. Seeing things only in black and white and drawing hasty conclusions are poor substitutes for reasoning. They obscure more than they illuminate. Remember that the issue has significance only for workers with very poor qualifications. For most of the workforce it is a non-issue. Economic theory and evidence indicate that a minimum wage is an ineffective weapon for fighting poverty or deterring the abuse of workers. Yet advocates say fighting poverty and deterring abuse are the main purposes of a minimum wage. Certainly, these are laudable undertakings. But good intentions alone are not necessarily good guides for policymaking. The proper weapons for fighting poverty and deterring abuse are to be found in a different armoury.

Collateral damage

The government could set the minimum wage at or below the level that would prevail in the labour market if it were left to work without intervention. But that would make a minimum wage pointless.

A minimum wage fixed by the government is too blunt an instrument to wield in a battle against poverty and abuse that requires more precise munitions It could set the minimum wage at a higher level. In that case, expect either or both of the following to happen: first, the least qualified and most vulnerable workers will be priced out of the market and become unemployed; second, the higher wages paid to some workers will come out of the pockets of others, in effect lowering their pay. A minimum wage does not guarantee a job and income to anyone. It may even reduce employment and incomes. So it seems to be a weapon not fit for its purpose, incapable of defending the most vulnerable. One cannot prevent or limit abuse or exploitation without good morals and good laws, or, crucially, without putting bargaining power in the hands of the workers. In other words, the workers must have representation and recourse to collective action. The main task, then, is to ensure that the rights of workers – to belong to a

trade union, to negotiate collectively and to withdraw their labour without undue penalty – are upheld in practice as well as in theory.

Waste of ammo

Both the Basic Law and several international conventions to which Macau is a party formally guarantee such rights. Now workers must be allowed to exercise them. If the real problem is poverty, then the solution lies in social policy, not labour policy. And if money is the problem, then the answer is not a minimum wage but a minimum income. Tackling the task of ensuring a minimum income would place Macau’s administration among the pioneers of really innovative social policies. A minimum wage fixed by the government is too blunt an instrument to wield in a battle against poverty and abuse that requires more precise munitions. The lengthy debate about a minimum wage is distracting our attention and resources from the real issues, hindering the formulation of appropriate policies to deal with them. More damagingly, the debate delays the development and consolidation of stronger social and economic institutions – the hallmarks, let us not forget, of modern societies. JUNE 2011

Gaming | Billions Race

Plus one

A new gross gaming record is established for the fourth month in a row n what is seemingly becoming a monthly routine, a new record for gross gaming revenue has been established. It is the fourth consecutive month in which a new peak has been set.

With a gross revenue of MOP24.3 billion (US$3 billion), Mayâ&#x20AC;&#x2122;s take by Macauâ&#x20AC;&#x2122;s casinos eclipsed the record set in April by almost MOP4 billion, according to data from the Gaming

Gaming Results: Gross Revenue

Inspection and Coordination Bureau. In year-on year terms, it was a 42.4-percent increase. Preliminary information compiled by Macau Business reveals Stanley

In Million MOP (1HKD:1.03MOP)

26,000

24,306

24,000 22,000

18,869

20,000 18,000

17,075

16,000

16,310 13,642

14,000

18,883

18,571

Dec 2010

Jan 2011

19,863

20,087

20,507

Feb 2011

Mar 2011

Apr 2011

17,354 15,773

15,302

Aug 2010

Sep 2010

12,000 10,000 8,000 6,000 4,000 2,000 0

May 2010

Jun 2010 JUNE 2011

Jul 2010

Oct 2010

Nov 2010

May 2011

Gaming Results: Market Share Per Operator 2010

2011

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May*

SJM

32%

30%

32%

29%

30%

32%

31%

30%

31%

34%

30%

34%

Sands China

19%

22%

19%

20%

19%

15%

17%

18%

16%

17%

15%

Galaxy

11%

10%

12%

13%

12%

10%

11%

13%

Wynn

16%

17%

15%

14%

12%

14%

17%

14%

15%

14%

17%

13%

MPEL

14%

13%

15%

17%

14%

15%

14%

17%

14%

MGM

10%

11%

12%

11%

12%

11%

TOTAL

100%

SJM

Sands China

Galaxy

Wynn

MPEL

MGM

May 2010

Jun 2010

Jul 2010

Aug 2010

Sep 2010

Oct 2010

Nov 2010

Dec 2010

Jan 2011

Feb 2011

Mar 2011

Apr 2011

* estimated

(Figures are rounded to the nearest unit, therefore they may not add exactly to the rounded total)

Ho Hung Sun’s Sociedade de Jogos de Macau (SJM) leads the market, with a share slightly bellow 34 percent. The company is followed by Sands China, with 15 percent, and Melco Crown ranked third, with 14 percent. Not surprisingly, the biggest winner last month was Galaxy Entertainment Group, which opened the massive Galaxy Macau in Cotai on May 15. From an April share of 9 percent, Galaxy now commands a market share a little over 13 percent.

Wynn Macau went the opposite way, seeing its share fall from 17 percent to less than 13 percent. MGM Macau was stable with an 11-percent share. Total casino gross gaming revenue for the fi rst five months of the year was up 43.1 percent over the same stage last year to MOP103.3 billion. With such strong growth, it is no surprise that Standard & Poor’s says Macau is likely to record strong growth throughout the rest of the year. The report says Macau will solid-

May 2011*

ify its position as the world’s largest single gaming market by revenue. “We expect gaming revenue in Macau to grow by more than 25 percent in 2011, provided China’s economic growth doesn’t slow down more than we expect or visitation levels drop drastically,” said Standard & Poor’s credit analyst Joe Poon in mid-May. “While such growth is significantly slower than the 57.8 percent in 2010, the industry is now growing off a much higher base.”

JUNE 2011

Gross revenue from different gaming activities 1Q 2011

4Q 2010

3Q 2010

58,835 58,521 42,570 10,558 2,723 1,067 663 303 188 65 67 46 45 46 18 30 25 8 2 n/a 0.3 n/a 116 76 89 33 1 0.0006

55,398 55,106 40,472 9,698 2,407 947 627 265 222 57 64 43 38 38 21 24 88 7 1 n/a 0.4 n/a 98 72 92 29 2 0.0005

47,723 47,384 34,047 8,884 2,236 884 528 255 154 52 52 52 38 33 20 23 34 8 1 n/a 0.4 n/a 107 85 134 11 1 0.0006

2Q 2010

1Q 2010

4Q 2009

3Q 2009

2Q 2009

41,248 40,951 28,761 8,024 1,948 869 594 273 135 55 48 45 39 29 28 19 19 8 2 1 0.5 n/a 124 91 52 27 2 0.0002

36,476 36,161 24,976 7,259 1,820 779 509 262 257 45 42 42 37 27 28 13 26 7 1 1 0.5 n/a 102 110 80 21 1 0.001

32,036 31,781 21,742 6,536 1,616 723 473 253 161 53 39 49 45 22 36 12 23 6 2 2 0.4 n/a 70 111 60 12 1 0.000

25,619 25,408 16,287 5,898 1,533 638 432 223 125 40 32 39 42 23 37 8 20 5 2 2 0.4 n/a 71 60 68 11 1 0.001

13.1% 13.2% 15.2% 10.5% 7.0% 11.6% 16.7% 4.2% - 47.5% 22.2% 14.3% 7.1% 5.4% 7.4% 0.0% 46.2% - 26.9% 14.3% 100.0% 0.0% 0.0% n/a 21.6% - 17.3% - 35.0% 28.6% 100.0% - 80.0%

13.9% 13.8% 14.9% 11.1% 12.6% 7.7% 7.6% 3.6% 59.6% -15.1% 7.7% -14.3% -17.8% 22.7% -22.2% 8.3% 13.0% 16.7% -50.0% -50.0% 25.0% n/a 45.7% - 0.9% 33.3% 75.0% 0.0% 150.0%

25.0% 25.1% 33.5% 10.8% 5.4% 13.3% 9.5% 13.5% 28.8% 32.5% 21.9% 25.6% 8.4% - 4.3% - 2.7% 50.0% 15.0% 20.0% 0.0% 0.0% 0.0% n/a - 1.4% 85.0% - 11.8% 9.1% 0.0% - 60.0%

- 2.4% - 2.3% - 3.2% 1.6% 0.0% - 7.1% - 11.7% 28.2% - 16.7% - 14.9% 0.0% - 11.4% 137.1% 9.5% - 28.8% - 20.0% - 16.7% - 16.7% - 33.3% - 50.0% - 20.0% n/a - 21.1% 33.3% - 5.6% - 56.0% - 50.0% - 1100.0%

Macau Patacas (Million)

Total Games of Fortune (total) VIP Baccarat Baccarat Slot Machines Cussec Black Jack Stud Poker Roulette 3-Card Baccarat Texas Holdem Poker Fantan Casino War 3-Card Poker Fish-Prawn-Crab Paikao Craps Lucky Wheel Makccarat Q Poker Tombola Mini Baccarat Horse Racing Greyhound Racing Sports Lottery - Football Sports Lottery - Basketball Chinese Lottery Instant Lottery

45,219 44,902 32,368 8,310 2,028 856 541 266 161 55 52 43 41 30 24 20 22 9 0.2 0.3 0.4 n/a 110 91 102 12 1 0.001 QoQ%

Total Games of Fortune VIP Baccarat Baccarat Slot Machines Cussec Black Jack Stud Poker Roulette 3-Card Baccarat Texas Holdem Poker Fantan Casino War 3-Card Poker Fish-Prawn-Crab Paikao Craps Lucky Wheel Makccarat Q Poker Tombola Mini Baccarat Horse Racing Greyhound Racing Sports Lottery - Football Sports Lottery - Basketball Chinese Lottery Instant Lottery

6.2% 6.2% 5.2% 8.9% 13.1% 12.7% 5.7% 14.3% -15.3% 14.0% 4.7% 7.0% 18.4% 21.1% -14.3% 25.0% -71.6% 14.3% 100.0% n/a -0.3 n/a 18.4% 5.6% -3.3% 13.8% -50.0% 20.0%

Source: Gaming Inspection and Coordination Bureau JUNE 2011

16.1% 16.3% 18.9% 9.2% 7.6% 7.1% 18.8% 3.9% 44.2% 9.6% 23.1% -17.3% 0.0% 15.2% 5.0% 4.3% 158.8% -12.5% 0.0% n/a 0.0 n/a - 8.4% -15.3% - 31.3% 163.6% 100.0% -16.7%

5.5% 5.5% 5.2% 6.9% 10.3% 3.3% -2.4% -4.1% -4.3% -5.5% 0.0% 20.9% -7.3% 10.0% -16.7% 15.0% 54.5% -11.1% 400.0% n/a 0.0% n/a -2.7% -6.6% 31.4% -8.3% 0.0% - 40.0%

9.6% 9.6% 12.5% 3.6% 4.1% -1.5% -8.9% -2.6% 19.3% 0.0% 8.3% -4.4% 5.1% 3.4% -14.3% 5.3% 15.8% 12.5% -90.0% -70.0% -20.0% n/a -11.3% 0.0% 96.2% -55.6% -50.0% 400.0%

Gaming | Stock Watch

On the sidelines Macau gaming stocks have been held back as investors opt to take a profit BY RAY CHAN

attered by inflationary headwinds across Asia, investorsâ&#x20AC;&#x2122; inclination to buy Hong Kong and mainland equities was sluggish last month. Even so, Macau gaming stocks have still outperformed the benchmark Hang Seng index by 40-plus percentage points so far this year, supported by record gross gaming revenue, the opening of the Galaxy Macau resort and the impending completion of new transport infrastructure in Guangdong. Some investors were eager to take profit or to short after a strong run-up to all-time peaks for gaming revenue and share prices. The profit-taking did not surprise analysts. The same pattern emerged last year when the gaming stocks rallied. From a portfolio management perspective, the Macau gaming sector grew in importance, the stocks now having a combined weight of nearly 6 percent in the MSCI Hong Kong Index, with a combined market capitalisation of about

Name

Share price performance (HK$/US$) 52-week high 52-week low

SJM Holdings Ltd.

18.8

Change (%)

5/26/2011

Month-to-date Year-to-date

5.0

18.8

12.1

52.0

Galaxy Entertainment Group

15.9

3.2

15.9

13.9

80.7

Wynn Macau Ltd.

28.4

11.3

27.0

-2.5

54.9

Sands China Ltd.

23.5

10.6

21.2

-2.8

24.1

Melco Crown Entertainment

11.1

3.6

10.7

-0.1

68.7

Melco International Develop.

7.1

2.9

6.9

4.4

55.0

Amax Holdings Ltd

0.2

0.1

0.9

0.3

0.6

0.3

0.6

24,988.6

18,971.5

22,900.8

-3.5

-0.6

Las Vegas Sands Corp.

55.5

20.7

41.5

-11.7

-9.7

MGM Resorts International

16.9

8.9

15.5

22.4

4.3

151.7

67.8

144.1

-2.1

38.8

2.4

1.0

2.0

-7.4

-8.2

Success Universe Group Ltd Hang Seng Index

Wynn Resorts Ltd. Genting Singapore PLC Penn National Gaming Inc. Dow Jones Indus. Avg. S&P 500 Index

40.5

22.3

40.0

0.0

13.8

12,876.0

9,614.3

12,354.2

-3.6

6.7

1,370.6

1,010.9

1,318.3

-3.3

4.8

JUNE 2011

Gaming | Stock Watch

Macau gaming operators’ share price performance (HK$)

500 450 400 350 300 250 200 150 100 50 0 Jan 2010

Feb 2010

Mar 2010

Apr 2010

May 2010

Jun 2010

SJM Holdings Ltd. Sands China Ltd.

Jul 2010

Aug 2010

Sep 2010

Oct 2010

Nov 2010

Dec 2010

Galaxy Entertainment Group Ltd. Melco International Development

Jan 2011

Feb 2011

Mar 2011

Apr 2011

May 2011

Wynn Macau Ltd. Hang Seng Index

Positive results

US gaming operators’ share price performance (US$)

400

350 300 250 200 150 100

As of May 25, 2011

50 0 Jan 2010

Feb 2010

Mar 2010

Apr 2010

May 2010

Las Vegas Sands Corp. Penn National Gaming Inc.

Jun 2010

Jul 2010

Aug 2010

Sep 2010

Nov 2010

Wynn Resorts Ltd. Melco Crown Entertainment-ADR

US$60 billion (MOP480 billion). The completion of the GuangzhouZhuhai mass rapid transit railway is also likely to increase the number of mainland visitors to Macau in the second half of the year. It may also mean mass-market punters could play a bigger role in the gambling industry’s growth. Sands China Ltd (1928.HK) and SJM Holdings Ltd (880.HK) are in a favourable position to take advantage of this mass-market momentum, with both companies having a big presence in the mass-market business and their stocks having undemanding valuations. Sands China is trading at 19.4 times expected earnings in its next financial year and SJM at 24.1 times. JUNE 2011

Oct 2010

Dec 2010

Jan 2011

Feb 2011

Mar 2011

Apr 2011

May 2011

MGM Resorts International S&P 500 Index

In contrast, the comparable price/ earnings ratios of Melco International Development Ltd (200.HK), at 59.7 to one, and Galaxy Entertainment Group Ltd (0027.HK), at 30.9 to one, are much more demanding. Analysts have expressed great optimism about the outlook for Wynn Macau (1128.HK) in light of chairman and chief executive Steve Wynn’s bullish speech about doubling its earnings in the next four years (see report in this section). The casino mogul also indicated that gaming revenue in Macau is expected to be five times that in Las Vegas in 2011. Wynn Macau’s net profit more than doubled in the last financial year from HK$2.0 billion to HK$4.4 billion.

everal Macau gaming operators reported first-quarter results last month, posting strong increases in both revenue and profit. SJM Holdings Ltd (880.HK) announced first-quarter net profit of HK$1.4 billion (US$180 million), 85 percent more than the year before. Gaming revenue increased 43 percent to HK$18.1 billion. It was SJM’s ninth consecutive quarter of growth in gaming revenue. Net profit for Sands China (1928.HK) increased 131.3 percent to US$262.1 million (MOP2.1 billion), calculated according to Generally Accepted Accounting Principles. Its parent company, Las Vegas Sands Corp, said Sands China’s net revenue had increased 22.6 percent to US$1.16 billion. In a conference call, Las Vegas Sands chief operating officer Michael Leven admitted that construction work on parcels five and six in Cotai is about five weeks behind schedule because of a shortage of workers, which may oblige the company to postpone the opening of the first phase of its development there to early next year. Melco Crown Entertainment Ltd recorded first-quarter net profit of US$7.2 million, having made a net loss of US$12.5 million a year before. Net revenue was US$806.6 million, rising 42 percent. The company has tapped five banks to help it get a five-year loan, a person familiar with the matter told Bloomberg. The US$1.2 billion loan deal is expected to be signed this month. The banks are Australia & New Zealand Banking Group Ltd, Bank of America Corp, Bank of China Ltd, Commerzbank AG and Deutsche Bank AG, Bloomberg said.

The lion stirs A

ll Macau gaming operators are now, finally, publicly listed. MGM China Holdings Ltd (2282.HK), which owns MGM Macau, started trading on the Hong Kong Stock Exchange on June 3. The IPO raised HK$11.66 billion (US$1.5 billion). The shares were priced at HK$15.34 per share, the top end of the initial price range of HK$12.36 to HK$15.34 per share. Four cornerstone investors bought into the company: hedge fund Paulson & Co Inc; MGM Resorts International founder Kirk Kerkorian; property developer Asia Standard International Group Ltd, controlled by Hong Kong businessman Poon Jing; and a company controlled by Hong Kong real estate developer Walter Kwok’s family trust. Cornerstone investors are entitled to large allotments in an IPO but in return must agree to hold their shares for a certain period. The listing meant businesswoman Pansy Ho Chiu King reduced her stake in MGM China. She retained 29 percent, while the shareholding public now owns 20 percent. MGM Resorts, with 51 percent, has management control. Previously MGM Resorts and Ms Ho each owned 50 percent. Although she reduced her stake in MGM China, Ms Ho told a news conference that she would maintain a strategic role in the company. “I believe to be an MVP – most valuable player – like when you are in a ball game, you do not always have to be the one making the goals. You would like to be there to be the best assistant,” she said. Ms Ho was able to keep her seat on the board and her minority stake in Sociedade de Turismo e Diversões de Macau (STDM), according to a non-compete agreement signed with MGM China. She indirectly holds a 3.77 percent stake in STDM. STDM is the

controlling stakeholder in rival gaming operator SJM Holdings Ltd (880.HK). According to a South China Morning Post analysis of Ms Ho’s holdings, she became the richest woman in Hong Kong after MGM China’s listing, with a net worth of about US$5.1 billion. MGM Macau reported last month a record quarter, with operating profit of US$126 million in the first three months of this year, 158 percent more than a year before. The result includes depreciation expenses of US$20 million.

JUNE 2011

Gaming

THE GOVERNMENT WANTS TO FOLLOW NEVADA AND SINGAPORE IN RAISING THE MINIMUM AGE LIMIT FOR ENTERING CASINOS BY SARA FARR ILLUSTRATION BY RUI RASQUINHO

he government has introduced a bill in the Legislative Assembly that will impose new restrictions on people entering casinos. The headline item from the proposal is to increase the minimum age from 18 to 21, as in Nevada and Singapore. The age limit would apply not just to patrons but to casino employees, too. The bill also proposes to give the government power to restrict any individualâ&#x20AC;&#x2122;s access to a casino, if the individual themselves or a relative requests it. In presenting the bill last month, Executive Council spokesperson Leong Heng Teng said it would help curb social problems caused by gambling, particularly among youths.

Gaming

The director of the Institute for the Study of Commercial Gambling at the University of Macau, assistant professor Davis Fong Ka Chio, welcomes the legislation. “We’ve been suggesting this bill be introduced for many years now,” he said. The idea was first brought up during then-chief executive Edmund Ho Hau Wah’s 2009 Policy Address, where he suggested the legal age for gambling be raised from 18 to 21. Three years on and the government has finally drafted a proposed bill. Curiously enough, it was Mr Ho who, in 2001, put forward a bill that lowered the minimum age for locals to access gaming tables to 18 years from 21. Research by Mr Fong’s institute between 2003 and last year indicates that 2.8 percent of the city’s population are pathological gamblers and 3 percent are “problem” gamblers. He argues that at the age of 18 not everyone is mature enough to cope with gambling. But there are also some doubters. Legislator José Pereira Coutinho says the bill is something the government “had to do to show face” and that it would not solve the problem of gambling addiction.

The bill proposes heavy fines for offenders. Underage gamblers will have to pay between MOP1,000 (US$125) and MOP10,000 if caught, while gaming operators face a fine ranging from MOP10,000 to MOP500,000. And if an underage gambler were to win in a casino, the winnings would be forfeited to the government.

Catch me if you can Enforcing a new age limit could prove difficult. Even with the present age limit of 18, checks at casinos are almost unheard of. That is why cases of minors joining the punters make headlines. “Whether it’s capped at 18 years or 21, there will still be youngsters who want to try their luck and, sadly, manage to,” says another assistant professor at the University of Macau, gaming expert Desmond Lam Chee Shiong. “Heavy fines and sentences, cou-

pled with good staff training, not just security personnel but all employees on the floor, and regular monitoring by the government agency to catch underage gamblers, will enhance the enforcement on this bill,” he says. Mr Lam says gaming operators are likely to tighten their screening in order to avoid bad press. But busy periods such as Golden Week, when crowds of visitors from the mainland pour into the casinos, will make screening more difficult, he adds. However, Mr Fong says the Gaming Inspection and Coordination Bureau will set guidelines on screening. “It won’t be a 100 percent check. It’ll be randomly selected or based on suspicion.” Mr Fong says Macau should follow Las Vegas, where the dealer is responsible for checking a player’s identity. “They have more time to observe the

“Whether it’s capped at 18 years or 21, there will still be youngsters who want to try their luck and, sadly, manage to,” says assistant professor at the University of Macau, gaming expert Desmond Lam Chee Shiong player, and if they have any suspicions, they can ask to see the ID or call security and have them checked,” he argues. Gaming operators assure they are willing to comply with the legislation once it is enacted. But the bill does not include details of how age checks on patrons are to be conducted. MGM Macau said that more training for security personnel “will be developed in accordance with the new bill, particularly on the topic of random guest sampling and identification.” Wynn Macau is sanguine. It said that because it is at the high end of the market, the casino “attracts fewer players in the 18 to 21 age group”.

No play, no work There seems little concern that the new legislation will reduce business. “I think demand is unlikely to be greatly affected by this bill,” says Mr Lam. “On the demand side, most of the current gamblers, hardcore, mass and VIP, should be above this age limit.” Galaxy Entertainment Group vicechairman Francis Lui says: “From our customers, those within the 18 to 21 years range are only a few. This measure will not affect our flow of customers a lot.”

Wynn Macau said it “supports the government’s efforts to regulate gaming operators in Macau and does not foresee any significant impact on its business as a result of increasing the age limit of casinos from 18 to 21 years.” But Mr Pereira Coutinho suggests that in the future some gaming operators may not be able to operate at full capacity because of a lack of employees, as many prospective workers will have to wait until they are 21 to work in a casino if the legislation is passed. “With the opening of more gaming resorts and hotels, the shortage of manpower will be one of the biggest challenges we will have to deal with in the near future,” Mr Coutinho says. MGM Macau said in a written statement: “The new bill will lead to fewer available talents for casino employers.” It suggested that the age limit for employees be phased in, to give gaming operators time to adjust to the constriction of the labour supply. “After the law is implemented there might be some issues in recruiting people,” Mr Fong says. “But most casinos have already prepared for this. Casinos now prefer to hire older dealers over younger ones. They prefer to hire people like housewives because they are more responsible and more loyal, whereas youths easily change their jobs for MOP2,000 more a month.” Several times, both

community leaders and government officials have shown concern over the number of youngsters who drop out from university or don’t apply at all, to go and work in the casino industry, where they can earn high salaries with low qualifications. At the end of last year, the average salary for a croupier was MOP13,610, more than 50 percent above the median wage in Macau. Whatever the outcome, Mr Pereira Coutinho says it is a joke for the government to think that youths cannot take on the responsibility of working in a casino at the age of 18 but can choose to get married and start a family at that age. JUNE 2011

Gaming

Next, please With Galaxy Macau now open, the most asked question is what’s next for the undeveloped land around the resort t 4:51 pm on May 15, Galaxy Macau officially opened its doors. In the first 90 minutes, more than 20,000 guests were welcomed. But with the resort occupying just one-third of the entire plot area, the big question is “what comes next?”. Galaxy Entertainment Group is keeping its cards close to its chest. Asked several times by reporters during Galaxy Macau’s opening celebrations, vice-chairman Francis Lui said the company was continuously planning and researching in order to respond to the market’s demands. He would not disclose details on plans for the undeveloped land. “The client profile in this region

Galaxy Macau got over 20,000 visitors in its first 90 minutes

JUNE 2011

of the world has changed a lot over the past few years,” Mr Lui said. “If we had used all the land at once, the property would become obsolete very fast.” According to him, a development by stages gives Galaxy Entertainment Group the flexibility “to regularly introduce novelties according to the evolution of customers”. The land grant contract signed between the government and Galaxy Entertainment Group gives the company until October 2017 to finish developing the land. The document adds that, besides a hotel and casino complex, including gambling areas, entertainment, retail and restaurants, the gaming operator also has to build a 53,000-square

metre convention centre. Galaxy Entertainment Group has not requested any changes in the land grant contract, a spokesperson for the Lands, Public Works and Transport Bureau told Macau Business. Although Galaxy Entertainment Group owns the biggest contiguous land bank licensed for gaming in Cotai and in the territory, Melco Crown Entertainment’s City of Dreams venue also still includes some undeveloped land. As for Las Vegas Sands, when it finishes constructions on parcels five and six, it still has parcel three, beside the Four Seasons, to develop. Neither of these companies have revealed any plans.

Good times AERL’s net income more than doubles IP room gaming promoter Asia Entertainment & Resources Ltd. (AERL), listed on the Nasdaq, announced its net income for the first

quarter of 2011 jumped 142 percent, to US$12.9 million (MOP103 million). The company’s rolling chip turnover for the first three months of 2011 was US$4.1 billion, up 115 percent year-over-year. Revenue was US$51.3 million, up 103 percent. AERL chairman Lam Man Pou noted that the company’s 103 percent year-over-year revenue growth exceeded the overall growth in Macau of

43 percent according to the Gaming Inspection and Coordination Bureau. “We expect strong organic growth to continue going forward,” he said. “We are forecasting continued double-digit growth in rolling chip turnover for 2011.” AERL currently operates VIP rooms at StarWorld, MGM Macau, the Venetian Macao and Galaxy Macau.

Aristocrat signs Rich Schneider Aristocrat Technologies has named Rich Schneider as its new chief product officer. Mr Schneider will lead all aspects of product design, portfolio management and global marketing activities, and he will direct the overall leadership of Aristocrat’s creative studios. Mr Schneider will be based in the company’s Las Vegas office and will report directly to chief executive officer and managing director Jamie Odell. He will begin his tenure at Aristocrat on July 28. Mr Schneider has a long experience in the gaming industry. He was executive vice president of product strategy at IGT and also played a vital role in conceiving what is now known as the Gaming Standards Association.

Sheldon Adelson’s pay doubles Las Vegas Sands’ boss Sheldon Adelson received US$11.4 million (MOP91.2 million) as chief executive of the company in 2010, according to an Associated Press analysis of a regulatory filing. The figure is double his 2009 pay thanks to receiving his first performance-based cash bonus in three years, amounting to US$5.7 million. Mr Adelson and his wife are the major shareholders of Las Vegas Sands, with a 57.3 percent stake in the company.

Illegal soccer betting syndicate busted Macau police busted last month a Hong Kong-led illegal online soccer betting syndicate, suspected of being in operation for one to two years. According to the Macau Post Daily, eight suspects were arrested. The case involves at least HK$50 million of illegal wagers.

JUNE 2011

Gaming

Going solo Wynn planning venture in South Korea BY ANDREW GELLATLY*

aming entrepreneur Steve Wynn has said he is willing to invest US$2 to 3 billion (MOP16 to 24 billion) in a casino resort project in South Korea, and plans to do so alone, without the backing of his long-time investor and deputy chairman Kazuo Okada. Mr Wynn, chairman of Wynn Macau and its parent company Wynn Resorts said he was ready to invest up to US$3 billion in a resort casino at Incheon, provided the government granted approval for domestic gaming. Currently, South Korea has 16 small casinos open only to foreign visitors, and only one, Kangwon Land, which serves the domestic market from a location several hours away from the capital. In an interview with the Korean newspaper Chosun Daily, Mr Wynn said he was keen to enter the Korean market provided that the government is ready to relax domestic gaming regulations. “After Vegas and Macau, Korea will be the next milestone of my life,” said Mr Wynn.

Closer to Cotai W ynn Macau is targeting to double its earnings in the territory after it opens its resort in Cotai, according to chairman and chief executive officer Steve Wynn. “I don’t know what measurements you use – revenue, profitability, total visitation, but we could be easily twice as big,” Mr Wynn said in an interview with Bloomberg television. The casino mogul, who was in Macau last month, told reporters he expects the government to give the thumbs up to the company’s

JUNE 2011

The Korea Tourism Organisation (KTO), the tourism promotion and development arm of the Korean government, is thought to be ready to back an expansion of Singapore-style integrated gambling resorts to promote both domestic and inbound tourism in the Republic of Korea. An advisory board of 15 leisure and tourism experts appointed by the KTO to study options, has recommended that five or possibly even six integrated casino resort licences be granted throughout Korea, with the first licences to be offered at Incheon, Busan and Jeju.

Cash ready “If I am given the opportunity to invest in Korea, I am willing to come in with US$2 to 3 billion today,” said the Wynn chairman speaking in Macau last month. “The only condition is that I don’t want to do a foreigners-only casino.” Mr Wynn, who recently confirmed that he expected to open a new property Cotai resort very soon. “We are waiting for the final approval of the land concession details. We have been told that everything is fine, but the opening of Galaxy [Macau] has occupied the attention of the government for several weeks, because it’s such a complicated and massive project. Now that Galaxy is open I think things will go quickly,” Mr Wynn said. According to him, the Cotai resort is expected to cost over US$2.5 billion (MOP20 billion) and should be open to the public by late 2014 or early 2015. Mr Wynn also turned down the idea that Wynn Macau is too exposed to the VIP market. “We’re not VIP centric. We just have a lot of VIP business, but we also have the best win per table in the general casinos in Macau,” he said. “For the size of our building, we can’t get any more customers in.” Mr Wynn rebuffed the idea of stepping down as CEO of both Wynn Resorts and Wynn Macau any time soon, but gave some hints about who could be his successor – Linda Chen, chief operating officer of Wynn Macau.

in Macau by late 2014 (see box), said he had visited Incheon in March. “The Incheon site around the airport is a good location to build integrated resorts,” said Mr Wynn. “That’s why we are not hesitant about making multibillion dollar investments. We want to help out developing the area. We wish to be a part of the community.” The casino boss, however, said speculation that he would partner with Kazuo Okada’s company to invest in Incheon was “incorrect”. “Mr Okada does not participate in management, although he is an investor and vice-chairman of the board,” confirmed Mr Wynn. Mr Okada is the controversial chairman of leading Japanese pachinko and gaming firm Universal Entertainment, who many in Japan believe would face close regulatory scrutiny were he to become involved in a foreign casino licensing process. “Mr Okada’s plan to open a small

“If I am given the opportunity to invest in Korea, I am willing to come in with US$2 to 3 billion today,” Steve Wynn says. “The only condition is that I don’t want to do a foreigners-only casino” foreigners-only casino is unrelated to Wynn. If we invest in Incheon, we will do it alone,” Mr Wynn said. He added that he “hopes to convey my interest to the highest level in the Korean government.”

Membership system With problem gambling a recurring issue in Korea, the owner of Wynn Resorts said he understood why the country might be afraid to allow domestic gaming. “The choice is entirely up to the Korean government. I only offer possibilities,” he said. “If they are concerned about the problem gambling, the government can even institute a membership system to regulate who can and cannot enter casinos.” Mr Wynn’s remarks come at a time when the foreigners’ only model of casino operation in Korea is seeing widespread and systematic abuse, as more and more domestic gamblers find

ways around the restrictions. The Seoul Metropolitan Police Agency recently arrested 16 people on charges of illegal gambling by using residency passports obtained by forging Ecuadorean residence permits, while 29 others were targeted for issuing the fake documents. “Certain South American and Southeast Asian countries consider the issuance of residence permits a source of tax revenue, so simply spending five days to a month in those countries is all it takes to get a residence permit through a broker,” a police spokesman told local media in Seoul. According to the foreign ministry, an Ecuadorean residence permit can be obtained by staying in Ecuador for just five days, with a foreign residency passport issued within eight days. The number of Koreans with foreign residence permits and residency passports rose some 6 percent from 95,824 in 2006 to 101,300 in 2010.

An Ecuadorean foreign ministry official said, “It takes about two months to verify suspicious residence permits, but we’re required under present laws to issue a residency passport within eight days, so we have to hand out the passports without being able to verify the applicants.” A revised law that would abolish the residency passport system by requiring foreign addresses to be recorded only on official registration cards is under consideration, but in the meantime there is every indication that the problems at passport-only casinos are set to worsen. Kangwon Land, the only casino in the country open to Koreans, recently confirmed that it would seek to restrict the number of visits that can be made by each customer to 15 per month as of next year, while also seeking to introduce a smoking ban, the first in Korea, at their property. * EXCLUSIVE GAMBLINGCOMPLIANCE/MACAU BUSINESS JUNE 2011

Gaming

Rising star

The redevelopment of Sydney’s Star City hotel and casino is designed to grab a share of the fast-growing Asian VIP market BY EMANUEL GRAÇA

alk of bold casino projects immediately brings Macau and Singapore to mind, but Sydney’s Star City hotel and casino is planning an A$860 million (MOP7.4 billion) redevelopment aimed at drawing in more high-rollers. The three-year facelift is being unveiled in stages. A live music bar opened in April, while the grand opening is expected to take place around September. Between then and December, Tabcorp Holdings Ltd., Star City’s owner, expects to open the doors of a new five-star hotel, several new restaurants and bars, a world-class spa and treatment rooms, 4,000 square metres of retail space and a refurbished and expanded casino.

JUNE 2011

By the end of next year, the development’s events centre will open. The 3,000-seat multi-purpose venue will cater to international acts, trade shows, exhibitions, conferences and television events. The upgrade will also reorient the property towards Sydney Harbour. The investment is intended to increase revenue from VIPs. The head of Tabcorp’s casinos, Larry Mullin, believes the redevelopment will help attract more high rollers from around the Asia-Pacific region. “The market in the Pacific Rim is very deep,” he says. “Asia-Pacific players are definitely looking to play in new places and we fit in that market.” The focus on high-rollers is obvious

at Star City’s new five-star hotel, which will offer 172 rooms, with the top floors being upgraded to include substantial two-bedroom and three-bedroom suites and private residences.

Fair share Mainland Chinese are among the highrollers Tabcorp is targeting. The investment includes two private aircraft to bring VIPs to Sydney from Asia. “The more convenient access you give to those affluent visitors, the better,” Mr Mullin says. The new casino, designed according to ‘feng shui’ principles, will include 1,500 slot machines, 500 multiterminals and 300 tables. The private

Tall poppy T

abcorp Holdings Ltd. is one of Australia’s two gaming giants alongside James Packer’s Crown Limited. Both are pouring billions of dollars into big capital expenditure programmes, including revamped VIP gaming floors and hotels to attract more VIPs. Tabcorp’s three main business units together employ about 11,000 people across several gaming brands, including Star City and Jupiters casinos, TAB, Tabaret, Keno, Luxbet and TAB Sportsbet. Tabcorp was listed on the Australian Stock Exchange in August 1994 so it could acquire the betting businesses of the Victorian Totalisator Agency Board. Tabcorp acquired Star City hotel and casino in 1999. In 2003, the company merged with Jupiters, the owner of hotel and casino complexes in Brisbane, Gold Coast and Townsville. In 2004, Tabcorp completed the acquisition of TAB Ltd, the New South Wales-based betting and media company. In the year ended June 2010, Tabcorp generated normalised revenue of A$4.2 billion (MOP36 billion). Its normalised net profit after tax was A$477.3 million.

gaming area will also be expanded. Mr Mullin says Star City has not been getting its fair share of VIP business in Australia, which is mostly directed to Melco Crown Entertainment co-chairman James Packer’s casino in Melbourne, run by Melco Limited. Recently, Mr Mullin says, his casino was able to increase its share of the market

from 15 percent to 25 percent but he is hopeful for more once Star City’s redevelopment is complete. In the first quarter, Star City’s normalised revenue grew by 11.3 percent on the back of stronger VIP play. The redevelopment is also meant to attract Australians. “We have a big domestic market,” Mr Mullin says. “We

“The market in the Pacific Rim is very deep,” says the head of Tabcorp’s casinos, Larry Mullin. “Asia-Pacific players are definitely looking to play in new places and we fit in that market”

believe we can create an incredible experience for those who have a hundred-dollar wallet or one with several millions.” Star City’s managing director, Sid Vaikunta, says the redevelopment will make the most of Sydney’s unique position in the Asia-Pacific region and maximise the potential of the property. When the facelift is finished, Star City will be an entertainment hub for Sydney, he says. Mr Vaikunta stresses the redevelopment project is one of the biggest in the city since the Olympic Games in 2000. Star City’s new hotel will be the first five-star hotel to open since then, he says. JUNE 2011

58 HECTOR R. TORRES FORMER EXECUTIVE DIRECTOR OF THE IMF, CURRENTLY WITH THE WORLD TRADE ORGANIZATION

Capital controls or protectionism CAPITAL CONTROLS COULD HELP TO CURB APPRECIATION PRESSURES IN EMERGING MARKETS AND AVOID TRADE WARS

conomic growth in emerging markets is more than twice that in “advanced economies” (7.3 percent versus 3 percent in 2010, according to estimates by the International Monetary Fund). Not surprisingly, they are attracting capital inflows and featuring higher inflation rates (6.2 percent versus 1.6 percent). This is the case in much of Latin America. In its recent ‘World Economic Outlook’, the IMF recommends monetary tightening in emerging markets and continued monetary accommodation in the advanced economies. Alas, both pieces of advice could breed protectionism if not accompanied by effective capital controls. Most Latin American countries feature strong economic fundamentals, and part of their inflation merely reflects a high weight for food (much higher than in advanced economies) in their calculations of the consumer price index. But this time inflation is not accompanied by exchange-rate depreciation. Quite the contrary. As a consequence, raising nominal interest rates would translate into real interest-rate increases that would widen differentials with advanced economies, thereby attracting even more short-term capital. While that might be fine for financial investors, it makes little sense to raise interest rates to confront price increases for food (and oil), which already slow the economy by reducing real wages (and cooling off production). But let’s set aside that discussion and assume, for the sake of argument, that interest-rate increases are necessary to address “second-round” effects on price stability. Even so, the advice is dubious.

War risk

Faster growth and stronger fundamentals are already attracting capital inflows into countries like Brazil, Chile, Peru, Colombia, and Uruguay. Wider real interest-rate differentials with advanced economies only compound their appeal and amplify expectations of exchange-rate appreciation. This, on its own, is already posing a challenge to the competitiveness of some domestic industries. But, on top of that, China has been significantly more successful than Latin American countries in stemming upward exchange-rate pressure. Additional short-term capital inflows, accompanied by calls for protection of domestic industries, could easily turn “currency wars” into “trade wars” – a risk that could be compounded if the Doha Development Round ultimately fails. Moreover, the intrinsic volatility of short-term capital inflows is another reason for emerging markets to continue JUNE 2011

accumulating foreign-currency reserves, thereby insulating their economies from sudden out-flows. An appetite for additional reserves is understandable, but also troubling, because it requires current-account surpluses – one of the primary catalysts of the recent global financial crisis. At a time when advanced economies must close their fiscal deficits, currentaccount surpluses could have a deflationary impact on the global economy. Reserve accumulation to defend the economy from sudden capital outflows could also compound one of the most disquieting lessons of the crisis. Indeed, if we had to choose only one reason to explain why the crisis did not hit emerging markets harder than advanced economies (as we would have expected), it is that the former had most of their assets in dollars and most of their liabilities in their domestic currencies.

Second-best solutions

So one of the main lessons of the crisis is that accumulating reserves shelters an economy from imported crises, thereby permitting governments to implement countercyclical policies. This is true, but, in an integrated world economy, it assumes that export-led growth is still an option. In an environment of high liquidity, in which Latin American countries are far less successful than China in fending off capital inflows, advising them to raise real interest rates can only lure more short-term capital, compounding appreciation pressures. Nobody should be surprised to see trade tensions. So, what should be done? In an ideal world, liquidity creation should be regulated internationally, and the coherence of domestic exchangerate policies ensured. But this is far from today’s real-world situation, so we need to aim for second-best solutions. Capital controls (regulations and “prudential measures”) could help to curb appreciation pressures. Admittedly, they are not watertight and could eventually be sidestepped, but they are far better than what might follow if they prove ineffective. If capital controls do not work, governments may feel tempted to provide protection to “their” domestic industries by imposing trade restrictions. The IMF has recently accepted that controlling capital inflows could be appropriate under certain circumstances. This is step in the right direction, but it is not enough. The IMF should also be mindful of the potential trade consequences of its policy advice. Rather than asking Latin American countries to combat food (and oil) inflation by raising policy interest rates, it should help them implement capital controls that are both effective and “light” in negative side-effects.

Table of contents 64 66 67 68 70 72 74

Welcome back

Success is the name of the game at G2E Asia

G2E Asia Welcome Letter

Preecha S. Chen, President, Reed Exhibitions Greater China

Gaming’s diversity on display

Frank J. Fahrenkopf, Jr., President, American Gaming Association

Strategic growth

Paulo A. Azevedo CEO, De Ficção Multimedia Projects

Keeping track

Event at a glance

Seminal seminars

Conference at a glance

Going Asian

For Aristocrat, it is all about knowing the customer

Time is money

GPI presents its Portable Chip Reader, able to read up to 400 chips per second

Jumbo pawns

Taiwan game maker to showcase its Video Baccarat

Total advantage

Konami steps up its wager

Easy chipper, easy pleasure

Ken Jolly, vice president Asia Pacific for Shuﬄe Master touts the company’s new products

The full range

Shuﬄe Master’s latest oﬀerings cover the gaming industry back-to-back

Fresh oxygen

Atronic’s line-up for G2E Asia is a breath of fresh air

Winning ticket

FutureLogic’s PromoNet solution takes centre stage at G2E Asia

Galatic play

Go fish

Reaching high

Alpha star

Organic player

Other highlighted exhibitors

102

Map

78 79 80

Aristocrat overtakes Galaxy Macau’s slots area Aruze brings its multi-award winning ‘Paradise Fishing’ to G2E Asia Meet Cath Burns, Bally’s super executive for Asia-Pacific Bally Technologies is bringing its new rising stars to Macau

The gaming knight IGT suits up for a joust

The fixers

Transcity Asia brings to town fully qualified and licensed professional service and support

New kids on the block

Aspect Gaming delivers with the launch of Eric Tsang’s ‘5 Ghosts’ slot machine Interblock’s latest game of seduction

A publication by | De Ficção Multimedia Projects, June 2011 Publisher: Paulo A. Azevedo | Project director: Luis Pereira | Editor-in-chief: Emanuel Graça | Editorial content: Christopher Cottrell, Casino International | Advertising: Bina Gupta, José Reis | Design: José Manuel Cardoso | Printed by: Welfare Ltd Block C, Floor 9, Flat H, Edf. Ind. Nam Fong, 679 Av. Dr. Francisco Vieira Machado, Macau Tel: (853) 2833 1258 | Fax: (853) 2833 1487 | E-mail: editor@macaubusiness.com | www.macaubusiness.com

Welcome back Success is the name of the game at Global Gaming Expo G2E Asia

rom June 7 until June 9, the world’s finest minds in the gaming industry will gather at the Venetian Macao for another exciting G2E Asia. This year’s edition will celebrate the trade show and conference’s fift h anniversary, and continue its legacy of contributing to Asia’s booming gaming market. As usual in Macau, the landscape has once again changed radically since the last edition of G2E Asia. The recently opened Galaxy Macau is the new play area to explore. The entire Cotai zone is buzzing like never before and for sure G2E Asia attendees will want to see the action with their own eyes.

The 2011 G2E Asia edition will open with a special party and welcome reception to toast five-years of success of the event. It will be just one of several key networking and celebratory moments that defi ne this year’s edition. Adding to that, there will be several conferences offering attendees the opportunity to explore the top issues affecting the Asian gaming market, including the operation of VIP junkets, new and enhanced ways to provide better security in casinos, and the best strategies for hiring (and retaining) top-notch casino staff. The lights are one element that will be guiding G2E Asia - namely at the new Green and Lighting Pavilion on the exhibition floor. This pavilion, along with the Security and Surveillance Pavilion and the iGaming Pavilion, shows the growing level of commitment the casino industry has for investing in new technologies that are supremely cost effective and environmentally friendly. Also of note, the 2011 G2E Asia Visionary award will be presented to Sheldon Adelson, chairman of the board and chief executive officer of Las Vegas Sands Corp. In this G2E Asia special by Macau Business, besides providing you with all the essential information on this year’s edition, we also talk to some of the top gaming executives from the growing slot machine sector. We further look at the latest products and gaming tools that will be on offer at G2E Asia and provide indispensable details and tips for attendees to make the most of the three-day event. Enjoy!

G2E Asia Welcome Letter

Dear Gaming industry friends,

Preecha S. Chen President Reed Exhibitions Greater China

t is with great pleasure that I welcome you to the 5th edition of G2E Asia at the Venetian Macao. Reed Exhibitions and the American Gaming Association launched G2E Asia in 2007, and the event has since become recognized as the leading event dedicated to the gaming industry in Asia. 2011 is an exciting time for G2E Asia, given that Asia remains the centre for growth in the global gaming industry. There are ongoing new developments throughout the region, and Macau continues to report record-breaking gaming revenue. We expect the 2011 event to be of heightening interest, and we have put in place an enhanced program, to provide gaming industry executives in the region the necessary education content, and a perfect platform to network and to conduct business. There are exciting new features with the conference program as a result of feedback from the industry; we have introduced a middle management track to the conference program. For the first time, this year’s conference sessions are running with simultaneous interpretation services in both English and Chinese to allow you to tailor the sessions and listen in the comfort of your preferred language. The gaming investment forum is back, and this exclusive, ‘by invitation only’ event provides an ideal opportunity for investors to meet with some of the region’s leading gaming operators. The G2E Asia exhibition floor continues to be the marketplace for cutting edge gaming machines and new gaming technology. You will meet with the world’s leading suppliers from Asia and around the world. For those who are interested in even more education programs, you may want to check out the very popular Game Protection Seminar and the new Lighting and Technology seminar, both of which offer first-hand vision on industry developments and trends. I sincerely hope that you will enjoy G2E Asia 2011 and have a successful visit to Macau. I also hope to welcome you to our 5th anniversary party and welcome reception on June 8. Thank you for joining us this year, and I wish you a very pleasant time in Macau and at G2E Asia.

Gaming’s diversity on display E

Frank J. Fahrenkopf, Jr. President and CEO, American Gaming Association

conomic diversification is an idea that has been getting a great deal of attention from governments, politicians and business leaders throughout Asian gaming jurisdictions and countries considering legalizing casinos or expanding their gaming offerings. The gaming industry has always been at the forefront of this trend, creating diverse entertainment experiences that go beyond the gaming floor to include dining, shopping, entertainment and MICE (meetings, incentives, conferences and exhibitions) activities, thus appealing to a broader range of customers. The Asian casino industry has a significant role to play in helping gaming jurisdictions become not just global gaming centres, but global tourism centres. Using gaming to generate tourism falls in line with the Macau government’s desire to diversify its economy and to promote businesses that focus on more than just gaming. The SAR’s major casino properties have already been leading the way on this front, as the most recently developed properties have embraced a wide range of activities geared toward both mass market visitors and VIPs and have looked to develop MICE business as a significant revenue stream. One property that has stood out in this arena is the Venetian Macao, which will host the fi ft h annual Global Gaming Expo Asia (G2E Asia) on June 7-9. Diversified resort casinos are the future of gaming in Macau, and Las Vegas Sands Corp. has been a pioneer in the creation of MICE business opportunities. For his vision in helping to set the stage for this next phase of gaming in Asia, Las Vegas Sands CEO Sheldon G. Adelson will be honoured with the G2E Asia Visionary Award on June 8. Singapore is another example of how the casino industry has generated opportunities for economic development. Its gaming market was created around the idea of integrated resorts, which by their very nature focus on non-gaming amenities and the goal of generating tourism and business dollars. Since the two integrated resorts have opened, they have not only been successful generators of gaming revenue, but also drivers of dramatic increases in the number of tourists to Singapore. This success has led to the consideration of integrated resorts as an economic development engine by a number of other jurisdictions such as Taiwan, Japan and Vietnam. Diversification of entertainment options is helping the Asian gaming market thrive, and cooperation and collaboration will also be necessary to successfully move the region’s gaming industry to the next level. While gaming is at its core a competitive business, there are a great number of issues that the members of the industry can come together to address – regulation, labour issues and responsible gaming, just to name a few. G2E Asia, the premier gaming trade show in Asia, is the one place for the industry to come together to not only see the latest products and learn about the newest trends, but also to network and share ideas about current and future industry issues with colleagues from around the globe. The future of the gaming industry in Asia, and the futures of the economies that feature it, is extremely bright, and that future will be on full display this month at G2E Asia. As economic diversification continues throughout the region, the gaming industry will be leading the way using innovation and collaboration to fuel new development and new ideas to help the whole region prosper.

Strategic growth G

Paulo A. Azevedo Chief executive officer De Ficção Multimedia Projects

aming in Asia has been growing as never before. Finally, some governments have realized that it is better to legalize gambling than to let it run loose underground. That way, they can allocate more resources to fighting some of its more perverse consequences, while also enjoying the tax revenue boost usually generated by the industry. Illegal gambling, not gambling in general terms, is the real enemy to strike against. Much more than a show where exhibitors showcase their most recent designs and technological advances to operators and the general public, G2E Asia has tried to analyze and draw attention to what has been happening in the different Asian jurisdictions regarding gaming. This includes the obstacles and difficulties the industry is facing in some countries, as well as the progresses, the barriers and taboos broken in others. In this sector, lack of information often becomes the biggest enemy for evolution, and the main culprit for misunderstandings that are damaging for the whole society. Throughout the years, and rightly so, G2E Asia has become an Asian product. It’s the only acceptable option. Macau and the rest of Asia have very specific cultural backgrounds, with particular ways of living. This means that growth strategies here will have less chance of success if they are mere copies of models used elsewhere in the world. The contrary is also true. This is one of G2E Asia’s greatest attributes: to have understood that Asian economic growth strategies will follow Asian models, with adaptations to each jurisdiction. What works in the Philippines may not work in the same way in South Korea or Taiwan. That’s why G2E Asia’s conference programme contributes to a more open discussion of the challenges and hurdles that the gaming industry faces in this part of the world. In our opinion, the Macau and Singapore models, while revealing the growing importance of the sector for economic growth and the development of the urban fabric itself, are but the tip of the iceberg. The ways to go are as diverse as are the chances of success. The De Ficção Multimedia Projects media group hopes to contribute to that success through its publications and initiatives. We hope that increasingly, Macau will serve as a good example of best practices in the gaming industry, to promote a more harmonious, transparent and well regulated development of the sector.

Keeping track What to see, who to listen to and where to go at this year’s G2E Asia

very edition, G2E Asia works as the annual gathering place for the regional gaming industry. More than just a seminar or exhibition, the event blends the two together in what is considered the leading trade show and conference in Asia for the sector. On the show side of G2E Asia, this year there will be a special Green and Lighting Pavilion showcasing the latest eco-friendly products and solutions. It provides a unique platform for casino operators and other gaming industry facilities that are seeking green solutions and innovative lighting technology. Featured suppliers will present the most up-to-date innovations in LED lighting, signage, and audio systems. For more high technology, the Security and Surveillance Pavilion will serve as a platform for security and surveillance industry professionals. It will feature products such as CCTV, access controls, monitoring, video systems, alarms, and security soft ware. There will also be an iGaming Pavilion for those seeking business partners in this area and looking for new product innovations in Asia. The space will feature suppliers providing consultancy services, soft ware, online and mobile games and fraud protection and payment solutions. The show floor itself will include more than 120 exhibitors, from more than 20 countries. These will include all the major slot manufacturers, like Aruze, Aristocrat, Atronics, Bally Technologies, IGT, Jumbo Technology, Konami and Shuffle Master. Chipping machines from GPI to Matsui will also be present, as will products from

other suppliers and producers of gaming technology support. The show is only a part of G2E Asia, which also includes a comprehensive conference programme. Day one (June 7) kicks off with the popular global markets forum that will cover the key regions of Asia and their gaming market status. Naturally, the event begins with an exciting spotlight on Macau’s past, current and future trajectories. Other seminars on the first day will target Southeast Asia, Singapore, South Korea, Taiwan and Japan, and fi nish off with Australia and New Zealand. On June 8, the day will be divided into two parts, one for middle management and one for senior management. In between, the programme includes an overview vision of VIP junket operations across Asia open to all attendees. On the second day of G2E Asia a special luncheon for VIPs and conference delegates will be hosted, where Las Vegas Sands Corp founder Sheldon Adelson will receive the 2011 G2E Asia Visionary Award. June 9 will offer seminars on how to appeal to Chinese mainland consumers, Macau’s gaming laws and fi nding fi nancing.

Special highlights The G2E Asia Gaming Management Certificate Program will also take place on June 9 and will include special interactive educational workshops designed to help new casino managers in Asia further their knowledge of current gaming trends in Macau. 70

Th is executive program is produced in partnership with gaming professors at the University of Macau and the University of Nevada, Las Vegas Singapore. All attendees will receive an official certificate of their achievement from both sponsoring universities and G2E Asia. Furthermore, G2E Asia will see an exclusive, invitation-only investment forum hosted and sponsored by UBS. The investment bank is a key sponsor of G2E Asia, which is organized by Reed Exhibitions and the American Gaming Association. Other highlights include a gaming protection seminar by Sal Piacente, president of UniverSal Game Protection Development, Inc. Mr Piacente will be presenting onsite game protection training with step-by-step explanations on card cheating tricks for baccarat and poker. Th is will take place during intensive, one-hour, live demonstration sessions on June 8 and June 9. As expected, Macau’s heavyweight gaming management will be out in force, for participants to network with and gain further insight from. There will be side trips to explore the new Galaxy Macau and see how the synergy of the Cotai area and the Macau peninsula are coming together. Th is year, G2E Asia will debut several exciting new features. The conference will introduce simultaneous translation services, allowing attendees to listen to sessions in English or Cantonese. Also, the G2E Asia website, www.G2EAsia.com, has added more features in order for conference attendees to maximize their conference experience.

Seminal seminars

Vietnamese dreams, junket math and labour issues will all be up for debate on G2E Asia’s conference programme

his year’s G2E Asia promises a wide array of seminars. The first day (June 7) begins with an in-depth look into Macau’s vibrant gaming market. Speakers will examine the challenges presented by an increasingly complicated VIP process, restrictions on growth and employment uncertainties, and discuss what to do to maintain the current level of success. The following successive sessions pertain to geographical breakdowns of markets. The first will be about Southeast Asia, focusing on Cambodia, the Philippines, and Vietnam. One of the debate drivers will be the excitement around Vietnam’s ‘Ho Tram Strip’, the country’s first integrated resort, slated to open sometime in 2013. Will it be Asia’s next big thing? Singapore itself gets a special seminar for comparing notes on the Marina Bay Sands and Resorts World Sentosa properties. It has been a year since both have been open and experts want to know if expectations have been met. North Asia, South Korea, Taiwan and Japan are viewed as “the least penetrated markets” for the industry. Will Taiwan legalize soon? What about Japan? Will South Korea let locals into

their properties? The first day of the conference programme closes with down under countries Australia and New Zealand and with this prime question - will these markets survive the social backlash against the purported negative effects of gaming?

Catering to all On the second day (June 8), G2E Asia attendees will be divided into senior management sessions and middle management meetings. The senior management sessions will cover non-gaming amenities, risk management and compliance in the gaming industry, as well as electronic table game action. Middle management will be focusing on budget strategies, and how to maximize casino floor layout in terms of the ideal mix of tables, slots and amenities. Lastly, with both Macau and Singapore facing daunting labour restrictions, middle management will have a special session on how to hire – and keep – casino staff. The second day of conferences also includes a general session regarding junket operations across Asia. The goal is to understand how the system works 72

in each country, what the economic and regulatory procedures are, and how players are satisfied so they return again and again. The final day (June 9) starts with a discussion on how to further appeal to the Chinese consumer. At this session, attendees will learn about the regional and cultural differences of Chinese consumers, as well as successful ways to appeal to the country’s growing middle class. Another seminar will examine several gaming law issues in Macau, from the legal impact of the announced smoking ban, to the increase in age for admission and employment in local casinos from 18 to 21. The ramifications of the distribution of Stanley Ho Hung Sun’s equity in SJM Holdings and the licensing and regulatory structure of the VIP market will also be among the issues examined. This is to be followed by a seminar on how to find further financing as the market becomes tighter for revenue raising capital. Speakers at this session will discuss the flow of revenue and how market conditions impact the share prices of gaming companies. The availability and sources of investment capital also will be reviewed.

Going Asian For Aristocrat, it is all about knowing the customer, according to David Punter, the company’s general manager for Asia-Pacific

ustralian slot manufacturer Aristocrat is stepping up its game to deliver products that are truly appealing to the Asian patron, says David Punter, the company’s general manager for Asia-Pacific. “We’re unashamedly Asian-focused and especially Macau-focused and know this drives the world gaming market and our success,” he stresses. Mr Punter is elated about Aristocrat’s offerings for G2E Asia and the business opportunities in the regional market. “Our success in Macau allows us to dominate in other places in Asia like Singapore with 30 to 40 percent of market share. With the Philippines we hope to have slightly more in the years to come,” Mr Punter says. “We have a great East and West library of games that work well in Australia, and we plan on bringing more new East and West games, with more research going into new games and technologies than we’ve ever done before.” Mr Punter, who became Aristocrat’s general manager for Asia-Pacific in December 2009, previously served as marketing director for the region from the company’s base in Australia. He holds a Bachelor’s Degree in Com-

merce from the University of Newcastle in New South Wales, Australia and has a background in the hotel and gaming management sectors.

Know your player Looking ahead, Mr Punter’s main goal is to carry out his mandate to develop an even stronger presence for Aristocrat in Macau, Singapore, Malaysia and the Philippines. And even back in Australia. Recalling the story of how Macau helped launched Aristocrat into the Asian gaming stratosphere, he says, “Back when we entered the market after the Sands Macao opened, we were really paying attention to support and listening to our customer needs. We always do this, but Macau was special and new back in 2004. “At the Sands, for example, we were looking at what sorts of products would progress in the Macau market. In the first six months we did translations and listened to what was working. We began scoring a market share right away, at first in the low 40s then into the high 50s. In the bigger properties we got into the 60th and 70th percentiles. So we know what works here. Some western games do work 74

here, and some Asian-themed games don’t work here.” According to Mr Punter, several Aristocrat products have proven to be true winners in Macau. “Our game ‘Fa Fa Fa’ is doing very well, so is ‘Yellow Dragon’. Their performance is simple; they have good math, good links and good Asian themes like the God of Fortune.” At G2E Asia, Aristocrat will be showing some novelties. “We’ve been behind in the past on some technology, but for the past two years our business has really caught up, with cutting edge technology and games like ‘Dragon Emperor’ and ‘Dragon Empire’,” Mr Punter says. “We’ve expanded on ‘Yellow Dragon’ and other dragon-themed games in anticipation of the Year of the Dragon in 2012. We feel this will bring us great strength for our core operations.” Mr Punter stresses the effort Aristocrat has been putting in to innovation. “Now, we’re not just going along with the same old games with a new art. We have new lines, different volatility, and overall great graphics and further expansion into a new and exciting space for gaming experience.”

Galactic play Aristocrat overtakes Galaxy Macau’s slots area

lthough boasting a strong presence on the G2E Asia exhibition f loor, Aristocrat Technologies has a bigger showroom in town. The company announced it has secured well over 60 percent of the slot installations on the gaming f loor at the recently opened Galaxy Macau, in Cotai. “Not only has Aristocrat secured the majority of slot machines on the main f loor of Galaxy Macau, this is the highest market share of any casino opening in Asia and we are very proud to be a part of what will be one of the finest destinations in Cotai,” says David Punter, general manager Asia-Pacific for Aristocrat. The products available at the property, which can also been seen at G2E Asia, include Aristocrat’s top Asian games, such as ‘5 Dragons’, ‘50 Dragons’, ‘50 Lions’, ‘Choy Sun Doa’, ‘Fortune King’, and ‘100 Dragons’. These games are highly unique owing to the special advanced technological capabilities from Aristocrat’s Viridian WS cabinet. Essentially, Viridian WS is powered by the GEN7 platform and provides players with 24 percent more graphics area. Moreover, it offers better graphics resolution and enhanced stereo sound. “We believe our Viridian WS cabinet, new product categories, a solid games library, and innovative product packages, will deliver the performance and diversity customers and operators will be looking for at Galaxy Macau,” Mr Punter says. This news adds to the excitement

of the winning Viridian cabinet line of products. Indeed, as Aristocrat struggled through the tough middle period of the company’s five-year revenue turnaround plan in 2010, it was the Viridian line that boosted market confidence. “Our impressive United States 2010 share result was largely due to the release of our innovative widescreen products ‘Viridian WS’ and ‘Viridian Slant Vii’,” according to Jamie Odell, Aristocrat’s chief executive officer and managing director. “In 2010, these products achieved an average price premium well ahead of our standard product - a particularly strong result in a contracting and intensely competitive market.” But there is more to Aristocrat than just cabinets. For the games, the company’s ‘Fa Fa Fa’ is proving to be a success in the region. The Asian-themed hyperlink on the innovative GEN7 offers players a highly interactive touch-screen feature with the chance of winning any of four-level progressive jackpots. ‘Dragon Emperor’ leads the pack of games in Aristocrat’s new REMIX category, where a triggered REMIX feature spurs the random shuffling of reels or symbols, adding extra excitement and rewarding possibilities. The feature is symbol driven, with ‘Dragon Emperor’ also adding a free games feature to the mix. For the latest exciting Aristocrat games, make sure to stop by their booth at G2E Asia or visit the floor of Galaxy Macau to see how well they perform in real-life conditions. 76

Go fish Aruze brings its multi-award winning ‘Paradise Fishing’ to G2E Asia

ruze Gaming America has new games lined up for G2E Asia. Among them is ‘Paradise Fishing’, one of the company’s latest, multi-award winning products. ‘Paradise Fishing’ was one of two games that saw Aruze win the Casino Journal’s annual ‘Top 20 Most Innovative Gaming Technology Awards’ for 2011. The other top was the Asian themed ‘King of Dragons’, which will also be on display at G2E Asia. Additionally, Inside Asian Gaming magazine also awarded ‘Paradise Fishing’ the ‘Best Slot Innovation for 2011’. In 2010, Aruze already saw ‘Lucky Sic Bo’, a popular G-station game, win ‘Best Multi-Player Game’ and ‘Best

Innovation in Electronic Game’ from the magazine. Commenting on the spate of awards, Aruze’s vice-president for marketing, Steve Walther, said the company “will continue to deliver the latest and greatest in game technology and provide nothing but exceptional service to our customers and players.” Apart from the Reel Feel Gaming Technology in ‘Paradise Fishing’, the game is also engaging for its individual and competitive bonus events. Its three 60’’ high definition LCD displays depict the colours and motions of an underwater reef. It gives the player

the feeling that they are right in the water fishing for a big catch. Each LCD has two cabinets underneath, which play base games that have their own graphics and sounds. Tapping into the popular dragon motif, ‘King of Dragons’ includes feature reels and full colour LEDs that light up in seven different colours. For maximum excitement, the game has high-speed reels and slower spinning wheels. Bonus games and wins are shown on an integrated 19” LCD touch screen.

Reaching high Meet Cath Burns, Bally’s super executive for Asia-Pacific

ath Burns is an instantly recognisable name in the gaming industry. Since joining American slot manufacturer Bally Technologies in 2006 to establish the company’s Asia-Pacific sales, service and operations base in Macau, she has overseen phenomenal business growth in the region. Five years later, Ms Burns, Bally Technologies’ vice president and managing director for Asia-Pacific, is still extremely optimistic about business prospects. “We’re seeing three areas of growth in the Asia-Pacific market, namely in Macau, Australia and the Philippines. We’re really developing the Australian market right now and are very confident there,” Ms Burns says. Commenting on how she manages to stay focused given the increasingly hectic Macau gaming market, Ms Burns says, “I love what I do and I love change. Macau has been the most dynamic and ever changing market that I have worked in.” According to her, “the fast and competitive market is what has made Macau such an amazing gaming market and a piece of modern world history. Just when you think you understand the market, it makes another turn. This helps to keep me focused.” Ms Burns holds a Bachelor of Arts Degree in History and American Studies from the Flinders University of South Australia and earned a Master of Science Degree in International Studies from Central Connecticut

State University. Before working with Bally, she held leadership roles at Video Lottery Consultants. Previously, Ms Burns held business development and accountmanagement positions with IBM Australia, spearheading business development and marketing strategies for the company’s gaming industry clients. Whilst at IBM Australia, she received the Asia-Pacific Marketing Excellence Award and the Asia-Pacific Region Marketing Award.

Eyeing Cotai Over the past five years in Macau, Ms Burns has driven Bally’s growth through team leadership. Under her guidance, both the sales of games and systems have expanded in Macau, South Korea, the Philippines, Malaysia, Cambodia and even Laos. Bally has also established a strong foothold in Singapore and in Australia. “I am very fortunate to work with a team of people that are smart, committed and focused,” she says. “This is a team effort and everyone is the key to success.” Two years ago, Ms Burns was given the ‘Great Women of Gaming 2008 - Proven Leader Award’ by Casino Enterprise Management magazine. At the time, Ramesh Srinivasan, who has recently been promoted to president and chief operating officer of Bally, praised Ms Burns, saying she “is a world-class individual who is a 78

dynamic, motivated, and experienced leader. Cath inspires those around her to achieve great things each and every day, and her focus on the customer is unwavering.” This bodes well given the goliath potential from Macau’s continuing vibrancy in leading the Asian gaming market. This goes double with the increased action on Cotai. “The new Cotai will change the Macau market, particularly the addition of the newly opened Galaxy Macau integrated resort. It is an interesting question to see how the Macau Peninsula and Cotai will emerge as different areas for the slots market,” Ms Burns says. “Clearly slots are more mass market and that is Cotai. I’m very excited about how Galaxy Macau will compliment City of Dreams and the Venetian. I think it’s a gorgeous and original property.” As for slots writ large and the strategic importance of Macau, “we’re starting to see it really build,” Ms Burns says. “[But] it still has a long way to go given [the huge] baccarat revenue.” For G2E Asia, she’s keen to showcase Bally’s latest Pro-Series slot machine cabinets. “I love the look of the ALPHA 2 Pro V22/22 - it is a sleek and modern design. Re-imagined from the ground up based on extensive customer and player feedback, the ALPHA 2 Pro Upright sets a new benchmark of unrivalled player comfort, interaction, engagement, and content,” Ms Burns says.

Alpha star Over the past three years, Bally Technologies has won more than 30 awards for product innovation. Now the company is bringing its new rising stars to Macau

ally Technologies will showcase a wide assortment of groundbreaking games and innovative technologies at this year’s G2E Asia. Debuting in Macau is the iDeck, the new, button-less, touch-screen button deck. iDeck redefines player-game interaction as its versatility offers extensive customizable features, virtual games, and mystery bonuses. The iDeck is a big innovation as it is the first full video player interface in the gaming industry. With iDeck, when new game content is installed, the button configuration instantly changes to match the game – operators will never need to change a button deck again. At G2E Asia, Bally will also officially launch its state-of-the-art Pro Series cabinets for the Asia-Pacific region. These are highlighted by energy-saving

features and were built for easy serviceability and maximum player comfort. They support downloadable content and are ready for networked and serverbased gaming environments. The Pro Series cabinets are driven by Bally’s new Alpha 2 platform that enables new levels of interactivity and visual quality with 3D-graphic animations. One of the products the company will be showcasing in Macau is the new Alpha 2 Pro V22/22 video cabinet. Some of the games presented on this cabinet include ‘Seagull Sam’, ‘Bacchus Gold’, and ‘Ole Jalapeños’. On display as well on the V22/22 cabinet will be ‘Playboy Hot Zone’, Bally’s newest Playboy title, which is arguably one of the premier licensed gaming brands ever developed. Playboy Playmates are animated over both of the 22’’ touch-enabled LCD displays for an incredible visual presentation. Bally will also introduce the

‘Golden Empire’ Mystery Progressive link to casino operators in Macau. This is the first theme in Bally’s new mystery progressive link family. The Asianthemed and locally created ‘Golden Empire’ takes players on a trip to an ancient land filled with the possibility of lavish riches and rewards. With the overwhelming popularity of table games in casinos across Asia, Bally will showcase at G2E Asia its TableView, an innovative table-management solution that allows operators to replace their existing manual rating process with the ease and simplicity of electronic automation. With TableView, it is possible to create an almost paperless environment in the pit and eliminate the delays of entering and updating ratings into the casino-management system. TableView also provides a higher standard of customer service by reducing the amount of time required by supervisors to capture and register player ratings.

The gaming knight International Game Technology is suiting up for a joust

nternational Game Technology (IGT) is suiting up for a proper gaming joust at G2E Asia. The company will be doing so with one game that sounds medieval but is actually based on the Batman movie ‘Dark Knight’. This game is included in IGT’s Center Stage Series. Players can choose to play Batman or the Joker to immerse themselves in group and individual bonuses while enjoying the thematic film experience. This is part and parcel of IGT’s exciting line-up for G2E Asia, which also includes the ‘Reel Edge Series’ games. For these, spinning-reel players can stop the reels to attempt to create wins. They can also use an arcadestyle joystick to control the outcome of the 100 percent skill-based bonuses in the top box.

Speaking of boxes and blockbusters, another cinematic-themed IGT premium product game to be showcased at G2E Asia is the new ‘Ghostbusters Slots’. Based on the iconic 1980s Ghostbusters movies starring Bill Murray and Dan Akroyd, this slot machine joins IGT’s MegaJackpots family, featuring high-frequency bonuses and low-denomination appeal. Other eye-catching games to be featured at IGT’s stand include the ‘Wheel of Fortune Triple Spin’ which offers a three-game MultiPLAY interface. This game has built-in the ‘Wild Rollover’ feature, which triggers a bonus on game one and will then roll over to the other two games for a spin of all three wheels in the bonus. IGT’s Core games continue to offer a wide library of video and spinning80

reel slots. And this year, the new Player Affinity Suite brings strong, recognizable brands to the casino floor. Among the titles on display will be ‘Ringling Bros. and Barnum & Bailey’, ‘5 Reel Circus’ and ‘The Greatest Show On Earth’ games. Additionally, IGT will show floorand property-wide systems, namely its award-winning sbX Experience Management system, IGT Advantage and IGT Casinolink casino management systems. The stand will also showcase IGT’s innovative online and mobile gaming products, an area where the company already has over 10 years of experience. Overall, IGT is ready to joust with any competitor at G2E Asia, regardless of whether they are a bright or dark knight.

Time is money GPI presents its Portable Chip Reader, able to read up to 400 chips per second

aming Partners International (GPI) will showcase its new Portable Chip Reader at G2E Asia. With the latest radio frequency identification (RFID) technology, GPIâ&#x20AC;&#x2122;s latest chip reader gives casino management the advantage of instant chip authentication and tracking. The GPI Portable Chip Reader allows the table, pit podium, cage or chip bank, or senior management to read, authenticate and count their RFID chips, plaques or jetons from any location instantaneously. The Portable Chip Reader use the latest Mag-

ellan Mars 24 reader with a twodimensional antenna that can read chips on mass, or in stacks or racks. By the numbers, this means the Portable Chip Reader can quickly identify chip stacks of up to 20 and as many as 200 in a tray. Additionally, its high-speed reading capabilities make it possible to read up to 400 chips per second while simultaneously identifying whether the chips are authentic, valid casino currency.

To aid the monitoring, the GPI Portable Chip Reader has an easyto-read LCD display. This shows the number of pieces being authenticated and the total value amount of the chips. This key advantage makes it possible for casino staff to easily identify and remove foreign, non-casino chips. Designed for ease-of-use and reliability, its durable design is easy to transport throughout the casino, and it has a universal power supply that works with any voltage. With its Chip Inventory System 2.0, the GPI Portable Chip Reader allows real-time monitoring and authentication of inventory and provides instant and accurate validation of chip amounts and serial numbers. Moreover, it increases the accuracy of chip cash in and out transactions by verifying manual counts, and can be integrated with third-party table management systems. It comes in a sleek portable case that includes a chip-reading surface. This can further be customized with the casinos logo on it. Accurate, high-tech, and stylish, the GPI Portable Chip Reader stands ready to impress at G2E Asia and beyond.

Jumbo pawns Taiwan game maker to showcase its Video Baccarat

aiwan-based gaming manufacturer Jumbo will be promoting its Video Baccarat at G2E Asia, featuring the newly integrated ‘Multi Baccarat’ function. With an interactive 3D dealer named ‘Jessie’ on a 47’’/50’’ wide screen display, the player will experience an extremely realistic gaming simulation in real time. Though everything is displayed on the screen in 3D animation, the probability is still decided by the mechanical ball randomizer. There’s no need for players to doubt the fairness at all. A double-window screen will show all players how the balls are tumbling and chosen. The whole process of getting the ball randomly is clearly open to all the players letting them understand that the probability is not controlled by human hands. Of course, players can see the outcome of the ball on their terminal screens. The ‘Multi Baccarat’ feature enables players to experience up to three different baccarat games without moving from terminal to terminal. Moreover, it gives the player a more efficient and convenient option for gaming. Other special functions like the ‘Squeeze’ card function and ‘Random Payout’ function are also available to suit various market preferences. 21

Total advantage Konami steps up its wager

onami is preparing a vast new product line-up for G2E Asia as the company gears up to push further into the Asian gaming market. On display will be Konami’s latest

release Podium video cabinet, the Advantage 5 stepper and the Advantage Revolution three-reel stepper. The Advantage Revolution is a first for the Asian market as it features

a unique slot cabinet with two highdefinition video screens combined with traditional mechanical reels that rotate back and forth to keep players engaged and entertained. Advantage Revolution incorporates the successful Advantage 5 attractmode lighting system with multiple game screens to enable exciting bonus events. For the rock and roll fans, the latest Advantage 5 stepper product will have customers bopping away to the old time tunes of Bill Haley and the Comet’s 1954 recording of ‘Rock Around the Clock’. Recently released in the United States, the deployment of Advantage 5 ‘Rock Around the Clock’ games for Asia will commence shortly. Also being introduced at G2E Asia is the latest community style link, ‘Beat the Field’. It brings all the excitement of a day at the races, to the gaming floor environment. Available as a four level progressive, it supports both video and stepper platforms. When the mystery jackpot is triggered, horses are allocated to eligible players based on bet level. The horse race begins and players compete for a jackpot prize. Completing the Konami lineup for this year’s G2E Asia is a new concept free spin progressive link. Unlike regular link progressives, which display incrementing dollar amounts, ‘Free Spin Dragons’ features an incrementing wheel that continues to rise until the feature is triggered. The player triggering the corresponding free spins plays the feature on a three-line game with fixed prize amounts.

Easy chipper, easy pleasure Ken Jolly, vice president Asia Pacific for Shuﬄe Master, touts the company’s new high tech chippers and tables

merican gaming supplier Shuffle Master is a special company, with special people, says its vice president for Asia Pacific, Ken Jolly. “Shuffle Master is unique in that it straddles both sides of the industry as a supplier,” he explains, noting that the company provides utility products, which enhance the security, productivity and profitability of the pit, and entertainment solutions like proprietary table games, electronic tables and slot machines. “We have products across both sides and this makes us unique,” Mr Jolly stresses. That also “makes careers with us unique.” He hopes to tease out this rare character with four samples of Shuffle Master’s prowess at G2E Asia. For starters, on the proprietary table games side, the company will be showcasing some of its most successful products like ‘Caribbean Stud Poker’ and ‘Casino War’. “The second part of our table message is that we are doing a lot of work on our game control computers that manage the jackpot, typical on Caribbean Stud,” Mr Jolly explains. Regarding the utility products, these include Shuffle Master’s card shufflers and chipping machines, together with an array of other table game accessories that make sure everything runs efficiently and is well scrutinized in the pit. Included in this range is the new MD2-CR shuffler, an enhanced ver-

sion of the popular MD2 batch shuffler, which counts and shuffles up to eight decks of cards. The MD2-CR is faster and easier to use, resulting in more productivity, security, and profitability on games like baccarat and blackjack. “We also have a new Easy Chipper D that builds off from our old Easy Chipper, which is a special chipper where the chips are sorted by their colors,” adds Mr Jolly.

Digital power The third range of products Shuffle Master is showcasing at G2E Asia is the company’s electronic table sys86

tems, which combine a dealer and live game with an electronic betting interface. “Additionally, we have Vegas Star but with an electronic visual dealer and some new graphics,” says Mr Jolly. The fourth area of Shuffle Master’s booth will feature the Equinox slot cabinets, which offer widescreen displays and substantially improved graphics and user interfaces over older-style machines. Mr Jolly is bullish about how well Shuffle Master will perform at 2011 G2E Asia. “We believe we have a nice stand, well located, and our good range of products demonstrates the diversity of our company,” he says. Like many other gaming suppliers, Mr Jolly is excited to see how mass market gaming will grow in Macau as Cotai is expected to attract more and more middle-class players. “A lot of our electronic products are suited for the mass market and for high slot play. We are confident Cotai will drive the mass market growth over time at these large integrated resorts,” he says. “I have been bullish about Macau’s potential for slots since 2004,” Mr Jolly recalls. “I keep getting more bullish. In Singapore, we are looking right now at slots taking about 20 percent of the market whilst in Macau they take about five percent, mainly because baccarat is the game of choice here. But the market segment will grow - Macau is still a very exciting place to be with the new properties opening up.”

The full range Shuﬄe Master’s latest oﬀerings cover the gaming industry back-to-back

t its showcase at G2E Asia, Shuffle Master will demonstrate its continued commitment to developing utility solutions, compelling game content and various electronic table offerings for the Asian market. At the event, the company will highlight several new products that serve to further its position as a leading global provider of gaming solutions. For starters, everyone is eager about the Equinox cabinet. This latest addition to the Shuffle Master family of products is expected to stir great excitement in Macau. Other hot items to keep an eye out for are ‘Casino War’ and ‘Caribbean Stud Poker’, two of Shuffle Master’s most successful live table games. For ‘Casino War’, the combat begins when both the dealer and player have matching cards. Guess what: odds are they do, hence the name of the game. When at war, players have two options. Either they can quit play by surrendering half of their wager, or can continue to play by going to war. If the player chooses to go to war, both he and

the dealer match the original wager and receive another card. If the player’s card beats the dealer’s card, he wins it all. In case of a tie, the player not only wins both wagers but also receives an additional unit. Moreover, if players bet the tying wager before receiving their card er’s, and their card matches the dealer’s, methey win 10 to 1. So war is sometimes the answer. ean, For studs of the Caribbean, ead‘Caribbean Stud Poker’ features headto-head action against the dealer and ger. an optional progressive jackpot wager. ter’s A second part of Shuffle Master’s heir showcase at G2E Asia involves their lers, renowned line of card shufflers, chipping machines, iscores and equipment. Here, there’s a buzz surrounding the company’s new Easy Chipper D. For those familiar with the older d to Easy Chipper C, its well reputed sortbe faster than its competitors, ing more chips per minute. With imafety proved chip handling, better safety features and less moving parts, the nced new Easy Chipper D is also enhanced nterwith an easy to use touch screen interer to face that makes it easier than ever set the machine’s features. ther Shuffle Master has also another MD2new weapon in its arsenal: the ome CR shuffler, a newer model with some extra muscle. The MD2-CR shuffler is ular an enhanced version of the popular MD2 batch shuffler, which counts and shuffles up to eight decks of cards. ardUtilizing the same optical cardn reading technology that has been so 88

successful on the company’s i-Deal shuffler, the MD2-CR shuffler quickly scans and verifies pre-shuffled decks right at the table. The MD2-CR works with all card types and significantly reduces wear and tear, making cards last longer. One would expect no less from the true masters of the shuffle.

Fresh oxygen Atronic’s line-up for G2E Asia is a breath of fresh air

tronic’s local manager Lai Fatt Chang and the company’s sales delegates from Europe are promising a breath of fresh air at their booth at G2E Asia – namely their brand new Oxygen cabinet. The team will be at RGB Sdn Bhd’s booth, Atronic’s Asian distributor, where visitors will also be treated to Atronic’s library of standalone line games, roulette, and keno games. “Atronic’s continued presence in Asia over more than a decade has shown that we are committed to being a steady player in this market, and that we are willing to support operators across the continent, from Korea all the way down to Malaysia. This market is not just about Macau,” says Atronic’s senior director for Asia and Latin America, Marcel Heutmekers. “At this year’s show, we are presenting a part of our vast Oxygen library. This new cabinet is becoming a significant tool for us in many territories. It is already enjoying success in Asia, and we hope that customers will see this momentum and expand their Oxygen installation base in Asia.” This new Oxygen cabinet contains Atronic’s new ‘sensys EP’ platform. With its ‘Game to System’ (‘G2S’) compatible hardware, Oxygen is network-gaming ready, and supports all major casino systems and player tracking modules. The company’s systems division will be presenting several new products and applications at G2E Asia. A special product is ‘Crystal.net’. This is being touted as the gaming industry’s most powerful and robust EGM (Electronic Gaming Machine) floor network system with a touch screen player interface on each machine.

The show will also feature the launch of Atronic’s ‘myGuest’, a smartphone application for casino managers who want to reward particular players on the floor in real time. From their phones, they can see all the players on the casino floor at any given time, including their individual status information, such as player level, points balance, and the player’s game and win/ loss status since entering the casino. Again using their phones, managers can then award the player additional credits, or order the player a complimentary drink, for example. This application is designed to enable casinos to build profitable one-to-one p with selected customers. relationships

On the game side, Atronic’s ‘Hot&Wild’ multi-level progressive offers four jackpots, exciting game features, and lots of bonus action. The Oxygen cabinet’s top wide screen shows the jackpot meter so players can follow the rising mercury during “Hot&Wild” bonus games. The game is offered in single-game or multi-game setup. ‘Diversity’, Atronic’s successful multi-game product, features brandnew as well as top-ranking Atronic games. It allows players to select their preferred game types with different volatility levels, and is dubbed as the only multi-game on the market featuring proven, top-performing standalone progressive games.

Winning ticket FutureLogic’s PromoNet solution takes centre stage at G2E Asia

his year at G2E Asia, FutureLogic will demonstrate its new GEN3 Evolution Ticket Printer working in conjunction with its PromoNet Promotional Couponing Solution. Both technologies will highlight the flexibility and effectiveness of FutureLogic’s intelligent promotional couponing to increase game play and enhance player experience on gaming machines. The PromoNet solution is able to tailor different reward programs to carded and non-carded players; rewarding casinos’ most valuable players, boosting club membership and reaching out to all players with promotional coupons. With promotional triggers based on real-time game play metrics, slot promotions are directly linked to customer behaviour. The PromoNet solution is already being tested in a number of casino labs around the world.

“We’re very excited with the response and the number of opportunities following our product demonstrations at the G2E show in Las Vegas and ICE show in London. We have significant interest from major casino operators all over the world,” says John Edmunds, VP FutureLogic International Markets. PromoNet Promotional Campaigns can be downloaded via a secure network to the slot floor, Players Club, restaurants, hotels and shops. This provides an integrated couponing solution across the entire operation. Business analytics applications monitor the success and return of individual couponing campaigns, enabling operators to identify which promotions are the most popular and to customize them to reward their most valuable players. Couponing triggers can be based on a number of different events such as games played, amount wagered, time on machine, maximum bet percentage, etc.; and because the process is fully automated, promotional campaigns run around the clock with no additional resources. Also on display at G2E Asia, FutureLogic’s award winning 92

GEN3 Evolution printer is the perfect partner for the PromoNet solution with its dual-processing capability, near-photographic quality ticket printing and print speed. The GEN3 Evolution printer has the only Advanced Graphics Printing (AGP) technology in gaming, which enables it to print near-photographic quality, eye-catching promotional coupons. With room for 450 tickets, the GEN3 Evolution printer will continue to print tickets long after its 200-ticketcompetitors need a refill. “Over time this provides considerable savings”, notes Mr Edmunds. “If an electronic gaming machine prints an average of 30 tickets per day, switching to the GEN3 Evolution printer will save approximately 30 refills per year”.

The fixers For the first time, operators and suppliers alike have a fully qualified and licensed professional service and support company based in Macau

he Transcity Group, based in Melbourne now brings to Macau the same levels of service it has become famous for in Australia and New Zealand. Transcity Asia, its local subsidiary, brings to town a full service capability, focused on keeping gaming machines up and running through whole-of-life support, workshop maintenance and repairs. Established in 2010, Transcity Asia is a full range service provider able to take the clientâ&#x20AC;&#x2122;s ideas from concept, design, manufacture, installation and maintenance offering full support through the life of project. With Geoff McDowell as group managing director, David McNair as general manager, Chris Rogers as managing director Asia and Simon Broad as general manager Asia, the company has an experienced management team with over 60 years combined gaming related knowledge

and networks. Transcity Asia provides cost effective electronic solutions and technical support to a diverse range of mission critical markets. With extensive expertise in manufacturing, installing and maintaining electronic equipment, the company ensures quality service with maximum uptime to help its customers deliver on their bottom line. Its designs utilise current industrial products, improving performance and lowering total cost of ownership

including operating and service costs. With over 15 years experience in electronic gaming machines service and repairs, Transcity Group has already signed a number of support and service contracts with industryleading companies including Pelco, Transact Technologies, Zuum & DEQ. Transcity Asia has engaged in repair and support services for a number of casinos operators in Macau including Galaxy Entertainment Group, Wynn Macau, SJM, MGM Macau and the Venetian Macao. The companyâ&#x20AC;&#x2122;s professional workshop is licensed with the Macau government and is the only approved gaming repair facility in the territory. Transcity Asia is also focused and hungry to build the Macau business into a choice of preference for locals who want to develop a career in the electronic hardware and soft ware engineering industry.

New kids on the block Aspect Gaming delivers with the launch of Eric Tsang’s ‘5 Ghosts’ slot machine

spect Gaming, Asia’s newest gaming professionals, have partnered with Hong Kong’s favourite lovable rogue Eric Tsang, to launch ‘5 Ghosts’, its latest innovation in slot machine entertainment. Combining the traditional Chinese tale of the Five Ghosts with one of Hong Kong’s most accomplished film industry giants, Aspect Gaming has produced a volatile, high tech machine. The brand new Galaxy Macau immediately recognised the entertainment value of ‘5 Ghosts’ placing the machine in a prominent position on its gaming f loor ahead of its global opening. High definition screens provide crisp, visual and engaging cinema quality images and the ‘5 Ghosts’ cabinet, in high profile format, delivers powerful f loor visibility. “Both the cabinet and the game are attracting very positive comments,” says Andrew Macaulay, managing director of Aspect Gaming. Aspect Gaming’s business model is built on the motto ‘from Asia, for Asians’ and ‘5 Ghosts’ is an example of

the company’s ability to identify synergies for the market that work locally for both player and operator. With its headquarters in Macau, Aspect Gaming executives stress they are aware of the needs of the market and the extensive innovation required to stay ahead of the competition. “As much as everybody now recognises Macau as the largest gaming market in the world, it is still viewed as secondary for international companies who don’t have their headquarters or development teams here,” observes Mr Macaulay. With a focus on Asian players, the company has been targeting to examine and distinguish a successful combination of technology, entertainment and maximum profitability. “The unique gaming style that is emerging in Asia requires a dedicated and knowledgeable team to address players who are maturing very rapidly,” explains Mr Macaulay. “We are equipped with the resources, drive and know-how to tailor make the new sophisticated slot machines that Asia’s players are growing to expect of Macau’s technologically advancing market.”

Organic player Interblock’s latest game of seduction

eading multiplayer specialists Interblock will bring a multi-player-station setup with three different game options to G2E Asia, making use of its Organic generation of gaming products. The company claims this product family is the most advanced multiplayer platform on the market, offering unparalleled flexibility with multi-language support, multi-game capability, time-of-day denomination scheduling, and player selectable denominations. At G2E Asia, the company will be presenting an ‘Organic Island’ with

multiple player stations with single sided live display and three different generators with roulette, baccarat and dice available for players to bet on. The ‘Organic Island’ consists of two basic elements: the playstation and the generator. The armrest of the playstation is ergonomically designed, while the upper panel features an easily accessible bill acceptor, ticket printer, and a touch screen with very quick and accurate response. The interior of the playstation is accessible through the top panel for any quick maintenance or service activities, such as filling the ticket printer, replac96

ing the stacker box or switching the playstation on or off. For the second part of ‘Organic Island’, the random results generator can be electro-mechanical, live, or virtual. “In order to achieve our goals and please our respected customers, distributors and business partners from the gaming industry, this project begun at the highest level in the very beginning in order to get excellent presentation and excellent products,” says Michael Hu, sales director Asia at Interblock Asia Pacific. In other words, it is a new level of the organic evolution of gaming.

The big star

Italian style

Astro Corp pushes the boundaries at G2E Asia

Abbiati rolls heavy with explosive goods

stro Corp is hoping to wow visitors to G2E Asia. For three days the 400 square metres of its stand will be crammed with an array of new games, destined for markets in Asia and beyond. “We’re proud to show off our latest developments in a domestic environment, but G2E Asia has developed beyond a regional show. We will be meeting customers from around the world along with interested industry professionals from a number of new markets,” says Astro’s chief executive officer, Simon Herbert. Although the Astro Corp stand will be one of the largest at the show, Mr Herbert admits that it was not easy deciding which products to include. “Our inhouse development team is large by gaming industry standards, some 300 strong, and this is because we’re totally market orientated. “What you will see in G2E Asia is not a conceptual showcase, these are real products designed for real clients in a number of international markets,” he promises. Sure to prove a great draw will be Astro Corp’s expanding stable of multiplayer games. ‘Astro Roulette’ and ‘Astro 66 Poker’ will be joined by a Sic Bo game played on a 46” touch screen layout and with real dice in an automated shaker. All benefit from a compact footprint, advanced ID player recognition technology and extensive connectivity. With a strong reputation to live up to, Astro’s new slots presentation is sure not to disappoint. No less than nine new games will be debuted, including ‘Chili King’, ‘Polar Bear’, ‘Viking Warship’ and ‘Adventure Island’ along with two stunning multi-level jackpot displays, ‘Zodiac Cash’ and ‘Ping Ball’. Further evidence of Astro’s increasing international presence will be found in a wide selection of the company’s successful VLT games. A number of VLT games developed specifically for the Czech Republic will also be on show, including ‘Lucky Star’, ‘Bomber Mania’ and ‘Underwater’.

uring G2E Asia, visitors will have an opportunity to see Italian quality and design at its best as Abbiati Casino Equipment, manufacturer and supplier of live gaming equipment, presents in Macau its most recent products and state of the art technology. Abbiati will display its newest American roulette wheel with a variation of winning number displays. The company will also present a new line of layouts at the show, featuring top quality wool, synthetic, nylon and alcantara and all available in full photographic printing. For baccarat lovers, Abbiati has a unique beanshaped baccarat table, which was designed especially for this show. This fully customized Macau style table was made using the latest composite materials and innovative technology. “G2E Asia 2011 attendees will see the best of the company’s products. Following an increased interest received from clients for 13.56 MHz PJM RFID chip technology, Abbiati Casino Equipment will exhibit during the show a complete RFID demo kit together with verification stations,” says Giorgio Abbiati, the company’s chief executive. “The demonstration will show full traceability, verification and inventory of chips and plaques in a casino environment.” Mr Abbiati is positive about the significance of G2E Asia, stating that the company is committed to the Macau casino market as it shows continuous growth in all sectors. Abbiati is also hoping to harness the successful momentum the company’s brand new TV Poker Table with micro cameras has gathered. Regarding this, Abbiati’s commercial director, Terry Clarke, says, “Abbiati, in collaboration with Dallmeier, has designed a new innovative table. The modern design combined with high resolution cameras and related equipment, has secured Abbiati this top quality product.”

All in one Wizard of slots Novomatic brings in gaming innovations to accelerate their presence in Asia

WMS to cast spell on G2E Asia

ustrian-based Novomatic seems to have a message for G2E Asia: we have it all covered. Its show product display will range from a great variety of video slot games and cabinets to a comprehensive electronic multiplayer installation based on Novoline Novo Unity II as well as Octavian gaming systems and jackpots. The Novomatic team, together with representatives of new distribution partner for slot machines in the Philippines and Macau, Jade Gaming, will welcome visitors and present the latest innovations and gaming thrills. The unique new feature of the Novoline Novo Unity II system is the flexible interconnecting of a great variety of electronic live games and slot games on a virtually unlimited number of individual player stations. This multi-game functionality allows the operator to link any chosen number of terminals to different games such as roulette, baccarat, poker, black jack, sic bo and bingo as well as a great slot games, offering all within one installation. Novomatic’s multiplayer show installation at G2E Asia will comprise six Novostar SL1 (slant top) terminals plus one Novo-Bar, that are connected to a fully automated Novo Multi-Roulette wheel as well as a great variety of other electronic live games: Novo Flying Baccarat, Novo Flying Sic Bo, Novo Flying Black Jack plus Novo Texas Hold’em Poker and Novo Flying 3-Card Poker and a range of video slot games – all of which are available on each of the player terminals. At the stand, Novomatic’s latest Super-V+ Gaminator multi-game mixes will be presented in two groups of Super-V+ Gaminator cabinets that are linked within the Octavian casino management system ACP (Accounting Control Progressives System) and connected to the latest mystery progressive jackpot theme ‘Wild Nights’. Further Coolfire II multi-game mixes will be displayed in a range of Novostar SL2 cabinets.

MS International plans to entrance crowds at G2E Asia with a special Wizard of Oz themed game. But that is not all. On WMS’ “The Wizard of Oz” game, players become their favourite character as they journey to the Emerald City for a chance to encounter the Wizard of Oz. And like many of the Americans visiting G2E Asia for the first time, they “are not in Kansas anymore, Toto!”. Regarding some of their other games on display, the G+ Deluxe series takes standard G+ game play to a whole new level with 30 percent larger, highly detailed reel symbols, optional game statistics, amped-up win celebrations and synchronized lighting and audio effects. WMS also has a game called “Attack From Mars/ Revenge From Mars”. It expands player engagement and allows players to defend the Earth as Humans or destroy it as Martians, by playing two exciting Wild features and four comical bonus levels. “Our product displays will strike a strong balance between helping customers maximize their current slot performance, today, and reflecting our commitment to create new revenue streams in the years ahead,” explains WMS International president Sebastian Salat. The WMS G2E Asia 2011 product demonstrations will mark the debut of the company’s networked gaming Portal Game Enablement technology in the Asian market, which leverages the flexibility of networked gaming functionality to extend the life cycle of base game themes by adding new entertainment experiences on slot machines connected to the network. “For the first time in Asia, WMS is introducing our innovative Networked Gaming Portal family, the Ultra Hit Progressive portal application family, and other components of our WAGE-NET networked gaming solution to the Asian market,” says Mr Salat. The first commercially available WMS Portal application family, available on both video and mechanical reel games, Ultra Hit Progressive adds a secondary mystery progressive bonus experience on top of most current WMS base game themes. 99

Master of pay

Even flow

MEI’s SC Advance validates bills faster than JCM Global is arming itself the speed of gambling with the latest tech for bill next generation Cashflow SC item is validation MEI’s applying new technology and market knowledge

for a “market surprise” at G2E Asia. The company’s central showcase product, the SC Advance new bill validator, further raises the bar for performance features that directly impact operator profitability, including acceptance, jam rate, security and cost of operation. The device has been revved up with an improved recognition system, faster bill-to-bill speed, expanded memory, comprehensive barcode recognition, and an upgrade to USB 2.0. Because the enhancements are localized to the acceptor head, SC Advance can work hand-in-hand with legacy Cashflow SC units already in the field. This capability is facilitated by intelligent support tools which are able to sense the product version and provide the appropriate software. The SC Advance is not only compatible with previous versions, but also with product extensions that have expanded the reach of bill acceptors from the slot machine to the entire cash management process. In this line, MEI’s Easitrax Soft Count has rapidly changed the expectations for what a bill acceptor can offer. This integrated software/hardware solution uses information collected in the bill validator and makes it accessible in a database that can be networked to multiple locations and be accessed to analyse slot performance.

isitors to the JCM Global booth at G2E Asia will be able to see an advanced prototype of its new Vantage table bill validator. The Vantage was specifically created for the Macau market, where players typically buy-in to table games with a brick of notes. With the Vantage, instead of the dealer taking several minutes to count, notes can be counted at a blazing fast eight notes per second, dramatically increasing table game speed and the number of games played per hour. Its wide bill opening can accept a range of currencies, including Hong Kong dollars, Euros, Singapore dollars and US dollars. Also on display at the JCM booth will be the company’s new iVizion bill validator. This machine comes complete with Contact Image Sensor (CIS) Technology and a 99 percent-plus acceptance rate. Noted for its counterfeit protection, it also features a RFID ICB cashbox with encrypted and web-enabled data, a 64-megabit flash memory, and a selfcalibrating sensor package. The iVizion has the ability to read barcodes horizontally and vertically with two high-speed processors. It also has a sealed 85 mm banknote path, patented stacker mechanism, “Blind Mate” and “Hot Swap” design and complete compatibility with all gaming protocols, according to JCM Global. The company will also showcase its new PayCheck 4 thermal printer at G2E Asia. This device can print a ticket in just 0.6 seconds. The PayCheck 4 also has the most memory of any printer in gaming, says JCM Global, so it can store more fonts, images, logos and barcodes so operators can personalize the player’s gaming experience. The RoHS-compliant PayCheck 4 has the longestlasting head of any printer in the industry, stresses the company.

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Passing the test

Cashing in Crane Payment Solutions is banking big

Gaming Laboratories International presents exclusive tools for suppliers and regulators

t’s all about the money for Crane Payment Solutions group. That will be clearly obvious at G2E Asia with their latest money management solutions. The group includes CashCode, NRI and its newest member, Money Controls. Crane Payment Solutions is throwing a spotlight onto the CashCode One bill validator at G2E Asia. This product offers a range of benefits to casinos and OEMs across the region. These include: a universal design to accept all currencies; one single hardware platform to reduce support and operation costs; and flexible architecture with multiple options and configurations. The CashCode One has advanced sensor technology which scans both sides of the bill thereby optimising recognition, while its self-centering transport guides adjust automatically to perfectly align bills or barcodes of different widths, even when fed in at an angle. CashCode One also comes with oneCheck, a complete payment and cash management solution developed for casino applications by Crane Payment Solutions. This is an asset reporting and tracking cashbox management solution for both bills and tickets, offering dispute resolution at the press of the button, as well as CAPR (Cash Audit and Performance report) and hot box tracking. The CashCode one is just one of the many products the Crane Payments Solutions group will promote at G2E Asia. Money Controls’ products on the stand will include the Ardac Elite bill validator and Cyclone Hopper, as well as the Universal Hopper.

aming Laboratories International’s GLI Asia laboratory was the first full gaming testing lab in Macau and since its opening, the test lab has become the first and only gaming test lab in the region to achieve accreditation for ISO/ISE 17025:2005. GLI Asia provides the region with independent testing and certification for all electronic gaming devices, and is a part of GLI’s global network of 16 laboratories. At G2E Asia, GLI will be discussing its exclusive tools, including GLIAccess, the password-protected backend of GLI’s website where regulators and suppliers can quickly and easily track submissions; and GLI Verify, a hand-held tool that empowers regulators to take the lab with them to the casino floor. The lab will also promote GLI Link, a powerful tool that allows online testing of devices and systems; and Point.Click.Transfer that enables suppliers to quickly transfer previously certified submissions into jurisdictions around the world. GLI Asia tests an incredible range of electronic devices and systems including lottery, keno, and bingo; tote and pari-mutuel systems; cashless wagering systems; on-line computer systems and systems modifications; sports betting and wagering systems; and casino style gaming devices and VLTs. GLI also tests interoperability and communication; player tracking systems; TITO systems; RNG; and conducts associated/peripheral equipment testing and certification. In addition to its stand at G2E Asia, Ian Hughes, GLI’s senior director of engineering and client services, will speak on the panel “Protecting the Investment: Risk Management and Security in the Gaming Industry.”

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105

If you know of an event that you believe should be listed with Macau Business, please drop us an e-mail: calendar@macaubusiness.com. In the subject bar, type in “List me as an event”. TBA : To be advised |

June Date: Event: Venue:

6th - 7th

Asia Business Technology Forum 2011

Park Royal Hotel, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Organiser: Comfori International Address: KL Business Centre, Level 2, Menara KH, Jalan Sultan Ismail, 50200 Kuala Lumpur, Malaysia Tel: (603) 2141 0342 Fax: (603) 2141 3727 Website: www.comfori.com E-mail: hueyying.leong@comfori.com

Date: Event: Venue: Organiser: Address: Tel: Fax: Website: E-mail:

7th - 9 th

G2E Asia

The Venetian Macao Reed Exhibitions | AGA 39/F., Hopewell Center, 123 Queen’s Road East, Wanchai, Hong Kong (852) 2965 1633 (852) 2824 0246 www.g2easia.com wendy.fong@reedexpo.com.hk

Visit us at booth #120 Date: 7th - 9 th Event: Russian Gaming Week Venue: Crocus Expo, Moscow, Russia Organiser: Smile Expo Address: 8а, Vernadskogo prospect, Moscow, 119311, Russia Tel: (7) 499 550 08 96 Fax: (7) 499 550 08 97 Website: www.rgweek.com E-mail: info@smile-expo.com

Date: Event: Venue: Organiser: Address: Tel: Website: E-mail:

8th - 9 th

Date: Event: Venue: Organiser: Address:

22nd - 23rd

Tel: Fax: Website: E-mail:

BetMarkets

ARCOTEL Wimberger Wien, Vienna, Austria Clarion Gaming Earls Court Exhibition Centre, London SW5 9TA, UK (44) 0 20 7370 8579 www.bet-markets.com yeemay.huang@clariongaming.com

SAGSE Gaming Panama

ATLAPA Convention Center, Panama City Monografie S. A. Av. Alvear 1883 Loc. 21, (C1129AAA) Cdad. Aut. de Buenos Aires, Argentina (54) 11 4805 4623 (54) 11 4805 4791 www.sagsepanama.com info@monografie.com

Date: Event: Venue: Organiser: Address: Tel: Fax: Website: E-mail:

: A Macau Business partner event

25th

Best of British - Royalty Rocks

Galaxy Macau BBAM Alameda Dr. Carlos d’Assumpção, No. 263, Edf. China Civil Plaza, 20º andar, Macao (853) 8798 9697 (853) 2875 7762 Star World Hotel Grand Ballroom bbam@britchammacao.org

July Date: Event: Venue: Organiser: Address: Tel: Fax: Website: E-mail:

Date: Event:

5th

World Gaming Executive Summit

Eurostars Madrid Tower, Spain Terrapinn Wren House, 43 Hatton Garden, London, EC1N 8EL 44 (0) 20 7092 1000 44 (0) 20 7242 1508 www.terrapinn.com/2011/wges/ enquiry.uk@terrapinn.com

13th - 14th

Mobile Payments & NFC Asia 2011

Venue: Eaton Smart, Hong Kong Organiser: Symphony Global Address: 10 Anson Road, #25-03 International Plaza, Singapore 079903 Tel: (65) 6221 8119 Fax: (65) 6221 8796 Website: www.symphonyglobal.com E-mail: registration@symphonyglobal.com

Date: Event:

4th - 6th

Asian Infrastructure & Property Development Summit 2011

Venue: The Venetian Macao Resort Hotel Organiser: marcusevans Address: 4 Battery Road, 13-01 Bank of China Building, Singapore 049908 Tel: (357) 22 849 333 Website: www.aipdsummit.com E-mail: delegates@.com

Date: Event: Venue: Organiser: Address: Tel: Fax: Website: E-mail:

8th - 10 th

Macao Franchise Expo 2011

The Venetian Macao Resort Hotel MFE | IPIM World Trade Centre Building, 1st & 4th Floors, 918, Avenida da Amizade, Macao (853) 6212 8811 | 2871 0300 (853) 2825 7277 | 2859 0309 www.mfe.mo contact@mfe.mo | ipim@ipim.gov.mo

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Ergonomics

Posture perfect Poor training and awareness may lie at the heart of most workers’ back, neck or wrist problems, say health-care professionals BY LUCIANA LEITÃO

erhaps you have experienced lower backaches, neck pains or headaches after a hard day at the office. According to health experts, some Macau companies do not create or enforce a workplace that meets ergonomic principles. And even those that do, often neglect to teach staff about how to use equipment correctly. Bad posture in the workplace often results in severe health issues, such as lumbago and neck pains, which lead to a marked impact on worker productivity. Putting good ergonomics into effect in the office or factory can reduce costs by improving safety and thus decreasing the money paid out in

JUNE 2011

worker’s compensation. According to the Labour Affairs Bureau, since the handover in 1999 until 2009, the courts have ruled in favour of workers in 37 occupational health cases. Good ergonomics also helps prevent work-related injuries. In 2009, the territory reported injuries to 5,880 workers which temporarily reduced their productivity. That translates into a loss of 67,424 work days, the bureau said. Even in injuries with only mild damage, considerable costs can be involved, Uni - World Medical Rehabilitation Centre physiotherapist Marco Lao warns. For instance, workers “may

have to skip work in order to attend to such problems”. However, companies have yet to grasp the extent of the problem. Mr Lao’s clinic has received several patients who sustained workplace injuries, particularly casino employees. “They work for eight straight hours standing and they do repetitive movements,” he says.

Operating instructions Mr Lao says companies continue to shun investment in improving workplace ergonomics or practices. Small enterprises lack the funds to buy the correct equipment, whereas bigger fi rms have the gear but fail to teach em-

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Taking a stand T

here are as many types of work postures as there are job descriptions – dynamic and static, sitting or standing – and there are ergonomic rules for each. Employees working several hours seated should pay attention to their backs, physiotherapist Marco Lao says. “When we sit, the back has to be supported, otherwise the muscles will tire. Also, the chair cannot be too high and it cannot be too soft or too hard,” he says. It is not only a question of using the right chair. People also need to take regular breaks if they are sitting too long in the same position. Manual labourers should pay attention to other issues. “If, for instance, they have to constantly support their elbows, then they might develop inflammation in that area,” says Metro International Clinic sports physician Humberto Évora. Workers who must stand for long periods can also develop leg problems. “The legs might swell or develop other kind of pathologies,” he says, referring to circulatory problems. “This type of worker should rest regularly and practise sports to activate the lower body muscles.” Finally, Dr Évora stresses that workers doing heavy lifting and carrying should keep their backs straight, avoid twisting and take the bulk of the load using the leg muscles rather than those of the back.

ployees how to use it properly. “Maybe if the government started pressuring companies to provide training, then the situation might ease,” he says. Architect Mário Duque agrees. “Companies in Macau already have ergonomic equipment but that is more because it is ‘politically correct’,” he says, adding that companies should go further and “give certain recommendations” on good and bad work posture. Buying an ergonomic office chair is not always the most important aspect to improving working conditions. Physiotherapist Cristina Tsang, who works at retired-civil-servants’ association Apomac, says it is possible

to adjust standard equipment to avoid work injuries and other occupational health concerns. “Not everybody can buy a new ergonomic chair. It is better to teach them [staff] how to modify the ones they have by putting a cushion for back support or adjusting the height, as well as modifying the location of the computer and the mouse,” she says. Metro International Clinic sports physician Humberto Évora believes companies should rely on medical staff to inform workers about prevention of health issues related to bad posture. “Local fi rms should have medical departments informing the workers.

Instead however, the companies usually choose to transfer the problem to insurance companies,” Dr Évora says. Further aggravating the problem, Macau’s labour market is characterised by a high turnover rate and several fi rms operate on a short-term basis, neglecting long-term health concerns, he says. “Companies come here, they want to complete a service and leave.” He believes the government should provide some kind of support for prevention of occupational diseases and work injuries. “In Macau, you only hear about orthopaedics and physiotherapy but prevention fits in to the primary health-care sector.”

Unleashing ideas in a world of change JUNE 2011

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Hospitality

Pale greenery No establishment in Macau won a gold Green Hotel Award this year and it appears the local hospitality industry is still a long way off from being truly eco-friendly BY ALEXANDRA LAGES

reen hotels are becoming a global trend. There are websites where people can look for eco-friendly accommodation anywhere in the world, but Macau is still out of contention, even though the government is encouraging the hospitality sector to go green. This year the Environmental Protection Bureau revamped its Green Hotel Award programme, by offering three classes of award: gold, silver and bronze. No property won a gold award. The programme, which handed out the first awards in 2008, is meant to emphasise the importance of environmental management in the hotel sector and honour establishments that have reduced utilities consumption and waste. The Environmental Protection Bureau says the introduction of the three classes of award is “aimed at encouraging participants to actively improve their environmental performance in order to achieve a higher level of recognition”. The bureau says no gold awards were awarded because the criteria were “higher” than before. To reach the top tier, hotels are required to have achieved reductions in energy and water consumption of at least 30 percent from last year. Eleven hotels won awards this year. Only two – the Pousada de Mong-Há and The Westin Resort – received silver awards. A presentation ceremony is set to take place later this month. Altogether, 22 hotels hold awards, which are valid for three years. These hotels account for almost half the city’s hotels with three or more stars. This is

JUNE 2011

“an encouraging figure”, the Environmental Protection Bureau says. But environmental associations and industry insiders say the hospitality sector still has a long way to go before it becomes truly eco-friendly. Pousada de Mong-Há director Gloria Wong Mei Cheng says it is difficult for five-star hotels to adopt eco-friendly practices. “Hotels need to do a lot more to help to protect the environment. We encourage our guests to understand the reasons why we urge them not to have us wash bed linen and bath towels every day, and why we don’t provide disposable guest amenities. But maybe some hotels, especially the five-star ones, might not do this, to ensure there are providing fivestar service,” she says.

Multiply by 1,000 Ms Wong believes it is a matter of education. She gives the example of the mainland, where the government is taking the first steps in this direction, by legislating. “In Guangzhou, starting from April, the government introduced rules for guest amenities. They have a trial period of six months. Imagine a hotel with 1,000 rooms. How much disposable rubbish will they produce each day? Hotels have an obligation to protect the environment.” Should Macau follow Guangzhou’s example? “If more Chinese cities and countries do it, we need to consider this. When the right moment comes, I hope Macau does it as well,” says Ms Wong.

The president of the Macau Ecological Society, Ho Wai Tim, thinks the government should create a special committee to study and recommend greener solutions for the industry

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“There are basic issues that need to be addressed,” says the Macau Association of Environmental Protection Industry’s vice-president, António Trindade. “Simple things are missing, such as regulations and laws on the maintenance of buildings and professional certification in several areas. Today, we can only count on a proactive approach by the industry, which has been very open to participate in the Green Hotel Award, but little else.” Mr Trindade argues Macau should follow Hong Kong’s lead and establish mandatory building energy efficiency

certification for buildings. But “Macau lacks recognised entities to do this,” he acknowledges. “It requires a commitment by the government, hotels and professional organisations.”

Thought for food The president of the Macau Ecological Society, Ho Wai Tim, thinks the government should create a special committee of officials, industry representatives and professionals to study and recommend greener solutions for the industry. He also says hotels should focus more on waste recycling.

Since a Green Hotel Award is valid for three years, some of the winners this year were already holders, having been winners in 2008. The Environmental Protection Bureau says huge savings were recorded at these hotels between 2007 and last year. Electricity consumption fell by between 7 percent and 42 percent, water consumption by between 13 percent and 41 percent and waste generation by between 13 percent and 36 percent. Although these gains are impressive, the Pousada de Mong-Há’s Ms Wong believes hotels should look at JUNE 2011

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Hospitality

other areas, such as food waste. “We are making less food waste than other hotels because we have only one buffet, on Friday nights. But other hotels have buffets for breakfast, lunch and dinner. I believe that 30 to 40 percent of the food is wasted,” she says.

Among this year’s fi rst-time awardees are the Crown and Hard Rock hotels, both at City of Dreams. Melco Crown, which owns the City of Dreams complex, has been practising waste reduction, efficient energy management and water conservation in the

property since day one. “At the end 2009, we set a reasonable target to match consumption levels in the year of 2010, to the levels of the last seven months’ operations in 2009,” a spokesperson for the company said. “We have not only achieved the target set for

An educational experience T

he Pousada de Mong-Há wants its environmental management to be a model for the hospitality industry to follow, says the director of the four-star hotel, Gloria Wong Mei Cheng. The Institute for Tourism Studies runs the hotel for the instruction of its students. The institute has been following a comprehensive environmental management plan, the scope of which is expanding fast. “We have our own team, all parties involved from all departments, including students, and we are doing what other hotels do,” Ms Wong says. Actually, the hotel is ahead of the pack. “We don’t provide guest amenities. If the guest needs it, we will provide it. We use big bottles for shampoo and we don’t use disposal amenities, except slippers.” For two years now the hotel has not provided its guests with newspapers. Instead, there is a computer connected to the internet in each room. “Since 90 percent of our guests use the internet to book the room, we provide computers in all rooms so that they can read newspapers online. One computer equals three years’ of newspaper investment,” Ms Wong explains. “We believe we can be more environment-friendly while providing our service just the same. This is a triple win-win situation: the guest is happy, we can save money and upgrade our services.” As reported by Macau Business in our May 2011 issue, the JUNE 2011

Pousada de Mong-Há is also investing in recycling food waste, having bought a food waste decomposer last year. The pioneer programme has already attracted the attention of other hotels. “From time to time we receive calls from other hotels saying they are interested in our decomposer and asking for information,” Ms Wong says.

Not-so-dirty laundry

A local company collects waste oil from the hotel and uses it to make soap and other products. The Institute for Tourism Studies even collects old batteries. “We know Macau has no programme for recycling batteries, but we are saving them for the day the government takes such a measure,” Ms Wong says. Guests are encouraged to forgo daily replacement of towels and bed linen. Water-saving tap filters and low-flow shower heads have been fitted. The Institute for Tourism Studies has even installed a heat recovery system, which uses the heat generated by the central air-conditioning to warm water for the kitchens and guest rooms. The institute also uses solar panels to power some of the lighting. Because of these measures, the hotel’s energy consumption dropped by 20 percent between 2007 and 2009. But the gain came at a price. The Institute for Tourism Studies’ green budget has increased every year since 2007. In 2010, the institute invested MOP175,000 in green measures, more than double the amount it spent in 2007.

111 2010; we have done much better than we expected.” The goal of City of Dreams is to achieve the same consumption levels this year as last year, even though more facilities have come into operation since late 2010. The spokesperson gave no figures. The Melco Crown attitude is that five-star service does not have to mean wasteful designs and practices. “The benefits to a business of going green are numerous and can reduce the impact on budgets as well as on the environment through simple and cost-saving expedients. Well thought-out and consistently implemented saving standards could provide a hotel with a lot of alternatives for cutting costs and improving the property’s image,” the spokesperson said.

Responding to demand Sands China’s Venetian Macao has held a Green Hotel Award since 2009. The hotel’s electricity consumption has fallen 9 percent since it opened, even though the number of rooms and the

The goal of City of Dreams is to achieve the same consumption levels this year as last year, even though more facilities have come into operation since late 2010 size of the retailing area has increased. Its aim is to reduce consumption by 25 percent eventually. “Sands China has implemented many policies and plans, such as operational policies which control lighting,

power and air-conditioning during nonoperational times,” says the Venetian’s executive director for facilities, Michael Naylor. “We have installed items to conserve utilities such as lighting. Water saving devices implement control modifications to better operate motors. We have begun evaluation of more technical solutions and these projects take more time and money to implement.” Mr Naylor believes guests are becoming more aware of environmental protection in hotels. “We have found that every year guests are more concerned about environmental conservation. We are finding that some prospective guests and customers require our company to participate in green programmes,” he says. The Environmental Protection Bureau would not say what plans the government has to make the hospitality industry greener. But perhaps it could learn from the Australian city of Melbourne, where a city-sponsored programme begun six years ago has reduced consumption of water by hotels by 15.3 litres per guest per night.

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112 GUSTAVO CAVALIERE HOSPITALITY INDUSTRY EXPERT - gustavo.cavaliere@gmail.com

To a young hospitality worker HOLDING A MACAU IDENTITY CARD MAY BE THE ULTIMATE ADVANTAGE WHEN LANDING A HOTEL JOB BUT ONLY THE WELL-PREPARED WILL SUCCEED

ear reader, if you are a hotel employee in Macau, are in the process of being hired or are attending a hospitality programme, please understand this: everything in the world is in constant motion; sooner or later everything changes, and Macau is no exception. You should be aware of this because, sooner or later, Macau’s employment laws will inevitably be revised. If you are not prepared when that happens, you may suffer unwanted consequences. Let me explain. To a certain point I agree with the present employment framework that protects local workers. It is fair that locals are chosen first when new job openings arise. But it is also fair that hotel companies be granted more flexibility if they cannot find qualified staff holding a Macau identity card. Today, the rules are so inflexible that hospitality employees are treated like merchandise instead of like an important part of an industry essential to Macau. As a result of the lack of available human resources, hotels have no choice but to hire unqualified personnel. These workers eventually fill positions in which it is necessary to deliver excellent service to customers. Not surprisingly, these employees are often unable to meet minimum standards. That is why excellent service is rarely seen in any of Macau’s luxury hotels.

Sitting comfortably

Since there are not enough qualified residents to fill vacancies and importing labour is hard, hotel employees have become a commodity. They are no longer regarded as qualified workers with a career ahead of them. I know that this may make you feel a little uncomfortable. I am writing this to show you the need for change, to make you aware that the present employment situation will come to an end, sooner or later. And change cannot be much further off. Let us face reality. Current developments and the government’s commitment to make Macau an international tourism destination mean there will be a need for at least 50,000 new employees in the hospitality industry in less than five years. Since there are not enough workers in Macau, who will fill these positions? Do you think hotels will keep raising JUNE 2011

Sooner or later, Macau’s employment laws will inevitably be revised. If you are not prepared when that happens, you may suffer unwanted consequences the salaries they offer in order to poach workers from their competitors? Even if they did, who would fill the positions left vacant at their rivals’ properties? Just bear in mind the possibility that the foreign and local companies spending millions of dollars on colossal hotels and casinos are already lobbying for the employment laws to be revised. Once again, everything in the world is in constant motion. Sooner or later everything changes, and Macau is no exception.

Let’s begin

If you still believe the present employment framework is good for you and helps local hotel employees take advantage of the manpower shortages, think again. It is easy to find a 21-year-old hotel worker earning MOP13,000 a month or more. It is easy for them to change jobs because they know that there are other hotels willing to hire them for at least the same salary. So the young employee does not think about continuing education, or

improving their skills, or developing new skills, or learning another language. Their focus is on earning the most money possible. There is nothing wrong with going after the best pay. I believe any employee who delivers excellence and works six days a week in such a tough industry should be well rewarded for their performance. But do you think that the same employee, without many qualifications but who earns a decent salary just because he or she is a resident, will still have a job in five to 10 years? No. Not unless they change their mindset and develop the skills needed. Employment laws will eventually change. When that happens, I can assure you that those workers who clung to their outdated thinking, protected only by obsolete regulations, and who did not improve themselves to deliver excellent service, will find themselves replaced by better-qualified staff who took the time and the effort to study, to better themselves and to get the skills needed to make a successful career in the hospitality industry.

THE NEW CARS IN TOWN CHECK OUT THE LATEST RELEASES FROM BMW AND MERCEDES-BENZ KINGS OF THE ROAD LOCAL DRIVING ACES ANDRÉ COUTO AND JOÃO FERNANDES REVEAL THEIR DREAM CARS CLASSICS ROCK MEET VITTORIO ACCONCI’S VINTAGE JAGUAR MARK 2

BREAKDOWN BY THE NUMBERS

ALL THE NOT SO UNIMPORTANT DETAILS ABOUT CARS IN MACAU

6,682

The number of European brand cars sold in 2010 in Macau, double the 2009 figure

The highest percentage tax rate on cars in Macau. Because the tax system on cars in Macau is progressive, as the model becomes more luxurious – and thus more expensive – the taxes also get higher

The number of Rolls Royces that Wynn Macau has in its limousine fleet

The average number of kilometres that a private vehicle covers per day in Macau, according to a study by the University of Macau

13,155

The number of traffic accidents in Macau in 2010. Ten were fatal

The number of companies importing electric scooters into Macau

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or most women, cars are a daily necessity. And for most men, they are a passion. This month’s edition of Essential is suited to both. First, we show you some of the newest models available in town. Be it BMW, Mercedes or, even, Mini, we present them for you to see, think about and, who knows, maybe even buy. Two local racing drivers, André Couto and João Fernandes talk to us about their ultimate dream cars. Curious? In this month’s edition we also feature the Mini E. The new trend in the car industry today is going electric and the BMW Group is serious about trialing this prototype in the lead up to the launch of its all new BMW i range scheduled for 2013. Do you see any classic cars around in Macau? Those beautiful MGA’s and Jaguars from the 1960s are almost nowhere to be found in the city, but we talk to classic car fan Vittorio Acconci, owner of the restaurant Pizzeria Toscana, about his 1960’s Jaguar MK2, and learn why he didn’t start a bigger collection of classic cars. Finally, we show you what you need to own to drive around in style and we explain the main differences between riding a motorbike and driving a car in Macau. After this, you won’t have an excuse for not choosing the right vehicle.

CARS IN MACAU Cars are more expensive Public parking takes you at least half an hour, and will drive you crazy in the process. There are not enough parking spots for the number of existing cars Itâ&#x20AC;&#x2122;s impossible to avoid traffic jams, since you donâ&#x20AC;&#x2122;t have any way to escape them Cars consume more fuel, thus making it not so good value for your wallet Driving a car may not give you the same freedom sensation, but it will surely help you avoid coming in contact with the exhaust fumes and pollution It is usually safer to drive a car, since, in case of accident, there are several safety systems and devices to prevent or reduce the severity of injuries

MOTORBIKES IN MACAU M Motorbikes are cheaper and thus easier to buy Parking a motorbike is easier, because there are more parking spaces for them and they always fit anywhere

You can easily avoid traffic jams, since motorbikes can navigate around the cars to go ahead faster Motorbikes consume less fuel thus making them better value for your wallet Riding a motorbike allows you to have more direct contact with nature and leaves you with an amazing sensation of freedom It is more dangerous, since there will be nothing to protect you in case of crash

TEN COMMANDMENTS FOR DRIVING AROUND IN MACAU 1. You must drive on the left side at all times. For those who just arrived to the territory, this might seem strange, but the first cars in Macau came from Hong Kong, where the English ruled. Since then, not even during the Portuguese administration did things change. 2. You must hold a local license if you intend to drive around in Macau in the long run. So, if you just arrived from abroad and you are here to stay, just change your foreign license for a local one. Another option is finding the right driving school and passing the written and driving tests once again. One little detail: to do that you should be able to speak Portuguese, Chinese or English, the languages in which the exams are conducted. 3. Walk or use a motorcyle. These are the best options for those who wish to arrive on time to an appointment in chaotic downtown Macau without needing to think about where to leave the car or where to find a taxi. Even public transportation can let you down. 4. Avoid getting taxis, especially during rush hour. True they are not that expensive, but, given that there are so many tourists, taxi drivers are a nuisance, particularly during rush hour, refusing to take you to places or trying, many times, to use a longer way to reach your destination.

5. Take cycle-rickshaws if you are on your day off or if you are having one of those sight-seing days in Macau. Otherwise, the time they take to get anywhere will not pay off. 6. Be sure to take a coat when using the bus, especially during summertime. The weather in Macau is so hot that the locals usually put the air-conditioning at the highest level, just to avoid the heat. But what usually happens, particularly in buses, is that you almost freeze to death. 7. Cycle only in Coloane and Taipa; otherwise it can be dangerous. Given the flow of cars and motorcycles on the peninsula, using a bike might not be the best option. 8. When using a taxi, if you are a foreigner, try to memorise some of the addresses in Chinese; or at least, have a map so you can point out your intended destination. It is very rare to find a taxi driver who can speak English. 9. Before buying a car, make sure you fully realise the number of vehicles that circulate in Macau and the dimension of the territory. Otherwise, you risk paying millions for a high-end sports car and not being able to really enjoy its full potential. 10. One last piece of advice: if you like cycling, buy a bike instead of renting one. In Taipa, there are some rental shops, but the bicycles there are mostly old and not that well maintained.

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FEATURE

FASHIONABLE

GREEN I

t is the hottest trend in today’s car industry: going electric. However, for the eco-minded driver who is also looking for a stylish ride, there are still very few options out there. The Mini E is one of them, although the model is only a prototype and it is not available commercially. The Mini E is part of BMW Group’s efforts to research and develop transport strategies and new types of vehicles for sustainable mobility. The goal is to bring commercial production of electric models by the German manufacturer a step closer to reality. Mini’s first all-electric car was built in a small series of 600 units. Field trials have been conducted in selected locations around the world since 2009, including in Macau, where two units were made available last April for testing by several government bodies and key public affairs organisations. Based on the current Mini model, the E version is available as a two-seater, as the space in the back is taken up by a lithium-ion battery. It can accelerate from a standstill to 100 km/h in just 8.5 seconds, and offers a top speed of 152 km/h. The car’s range is about 140 to 170 kilometres under normal driving conditions. The Mini E prototype results will help BMW Group to fine-tune its two new models BMW i3 and BMW i8, to be launched under BMW i, a new BMW subbrand, in 2013. The BMW i3 will be BMW Group’s first series-produced car for urban areas to be driven by electric power alone. The BMW i8, on the other hand, will be a plug-in hybrid targeting to blend the sporting ability of a high-performance machine with the fuel consumption and emissions of a small car. Waiting two years to put your hands on the wheel of an electric BMW may sound like an eternity, and since in Macau there are still no regulations for electric cars, the waiting could eventually be even longer.

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NUMBER OF SEATS: 2 POWER: 150 kW TORQUE: 220 Nm ACCELERATION: 8.5 s (0-100 km/h) TOP SPEED: 152 km/h RANGE: 250 km under ideal conditions (140-170 km estimated under normal driving conditions) BATTERY: Lithium-ion, 35 kWh CHARGE: 3 hours (220 volt, 48 A); 4.5 hours (220 volt, 32 A); 11 hours (220 volt, 12 A) CONSUMPTION: 0.14 kWh/km CO2 EMISSIONS: 0 g/km GROSS VEHICLE WEIGHT RATING: 1,660 kg PRICE: Not available for sale

The millionaire Bugatti

BIG SPENDER

tâ&#x20AC;&#x2122;s one of the most expensive streetcars available on the market. Costing as much as MOP23.25 million (taxes included), the Bugatti Veyron 16.4 is a truly powerful machine. With a proven top speed of over 400 km/h, the only problem might be the ability to use it on the small and crowded streets of the territory. Built by Volkswagen AG subsidiary Bugatti Automobiles SAS, it pays tribute to racing driver Pierre Veyron, who won the 24 hours of Le Mans in 1939 while racing for the original Bugatti firm. Now manufactured near the former Bugatti headquarters at Chateau St. Jean, in France, the Veyron 16.4 is built under the supervision of the architect Gunter Henn. Featuring a 16-cylinder engine, the Veyron produces between 1,020 and 1,040 metric horsepower. This easily makes it the most powerful production road-car engine in history. In 2008, the first Veyron was sold in the mainland, at the Auto China show in Beijing. At the time, the customer paid RMB25 million for the privilege of owning the first unit in the country. Reaching 0-100 km/h in just 2.5 seconds, this amazing machine will earn you the envy of your co-workers and friends. And one thing is certain, no one will be able to compete with you â&#x20AC;&#x201C; well, at least, with your car.

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INTERVIEW

REAL CLASSIC

If Vittorio Acconci, owner of the Italian restaurant Pizzeria Toscana lived anywhere else in the world but Macau, he would be a classic car collector. Here, since such a hobby is nonexistent and there are no specialised professionals to take care of old automobiles, he just sticks to his Jaguar Mark 2 By Luciana Leitão atch this,” Vittorio Acconci says, closing the door of his classic, green Jaguar Mark 2 (MK2). “Have you heard it? You won’t see this in any modern cars,” he adds, as the door closes smoothly, making a particular ‘click’. Mr Acconci, owner of the Italian restaurant Pizzeria Toscana, has always been in love with classic cars; modern cars cannot match the smell, the sound and the endurance of such vehicles, he says. Parked in the garage of his restaurant in Barra, the Jaguar no longer hits the road these days. There are people that go there just to see it and to take a picture with such a collector’s item. Since 2007, the car hasn’t left the garage. At that time, Mr Acconci was thinking of moving to Portugal and taking the Jaguar with him, but, for one reason or another, it didn’t happen. In the meantime, electrical problems started appearing in the car. “I even talked to the Jaguar delegation in Hong Kong, but they didn’t seem interested in repairing the car,” Mr Acconci recalls. There was a time before 2007, when Mr Acconci would take his Jaguar out of the garage at the crack of dawn when almost no one was on the road and drive out to Coloane, feeling the energy of this classic machine. Then, he would return, just before the traffic started to get more intense.

Why did he buy it?

Mr Acconci has always had a passion for classic cars. In the sixties, he had a two-seater MGA, which, eventually, he had to let go. So when one of the founders of the Macau Grand Prix approached him, 20 years later, and asked whether he wanted

the Jaguar MK2, he didn’t even blink. It was a golden opportunity. “Fernando de Macedo Pinto had bought the vehicle from another person who had brought it from Portugal,” he recalls. After getting his hands on the Jaguar, he even participated in the Grand Prix’s classic car race, in the 1980s. “At that time, they organized a classic car race, with cars that came from Hong Kong and Japan,” he says, adding that his Jaguar was the only automobile representing Macau in the year in which he ran. It was a “good experience,” but Mr Acconci doesn’t even remember which position he finished in. “I was a little bit afraid. There were a lot of people competing that had loads of experience.” On the starting line, he recalls there was a line-up of marques including Lotus, Mercedes-Benz and BMWs, besides fellow Jaguars. In the 1980s, Mr Acconci paid around MOP30,000 for his Jaguar MK2; nowadays, he doesn’t know how much it would cost, since it is a collector’s item. “There is no one in Macau to assess its value.” Even though it is no longer running, the car is good for his restaurant’s image. “People come here, they like it and take pictures. The Grand Prix people that come here every year also love it,” he says (see box). Mr Acconci wouldn’t even consider letting his Jaguar go. “Sell it? Never. Eventually, I will pass it on to my son,” he says. It’s his way of keeping a piece of motoring history alive in Macau.

Fast food

Right beside the door of the garage where Vittorio Acconci keeps his Jaguar MK2, there is a wall with lots of pictures of famous racing drivers. Why? Because, before its current location in Barra, the main Pizzeria Toscana was located right in the middle of the Macau Grand Prix building (there is a second outlet in Leal Senado Square area). “We were there for 14 years,” Mr Acconci says. At that time, Pizzeria Toscana was the main restaurant used by drivers and their teams during the Macau Grand Prix to grab a hot meal in between their busy schedule. “[Michael] Schumacher, Button, Hamilton, Barrichello... they all came and, now that we are faraway, the drivers and mechanics order by the phone and we deliver.” Through the restaurant, Mr Acconci has become friends with several of today’s best Formula 1 drivers. “Not so much with Schumacher, because he was very closed, but with others,” he emphasizes.

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Photos: Carmo Correia

NEW CARS

THE LOCAL RELEASES

CHECK-OUT THE MOST RECENT MODELS RELEASED IN MACAU BY THREE OF YOUR FAVOURITE BRANDS

The new BMW 6 Driving down the road with the top open and that priceless sense of freedom - that is the appeal of the new BMW 6 Series Convertible. The designers created the all-new model with the goal of making your best dreams come true. The two-plus-two seater makes a convincing case for itself with several innovative comfort, infotainment and safety features. With its powerful lines, the new BMW 6 Series Convertible is a luxurious machine that combines performance with elegance. The sporty proportions are inspired by the elegance of flowing water. Sexy and dynamic, the flat and extended car body and broad rear add character to this machine.

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Classic revamped Recently launched in Macau, the new generation Mercedes-Benz C-Class comes with some surprising features. With a more striking design, the C-Class has an optional high-resolution colour display in the instrument cluster, together with a new dashboard design with elegant, grained surfaces and prominent decorative trim that emphasise the premium character of the interior. New efficiency-enhancing measures make this a machine ideal for the businessman who appreciates less fuel consumption and more efficient engines. Combining elegance and modernity, the C-Class comes at a price starting at MOP378,000. Are you going to say no?

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NEW CARS

Countryman style You canâ&#x20AC;&#x2122;t really just describe it as small, because it is much more than that: it is the new Mini Countryman. Finally, this groundbreaking model has been released in Macau and it is the first four-wheel drive SAV (Sports Activity Vehicle) of the brand. With a body measuring over four meters long, it boasts four doors and a wide-opening tailgate, as well as a versatile interior offering room for up to five occupants. With more interior space and a better view over the road, the Mini Countryman comes with an innovative rail system between the seats, along with storage compartments and brackets that can be fixed to the rail, all to please the fans that would just like Mini not to be quite so mini.

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Have a go

FAST CARS

The biggest showcase for the world’s most luxurious four wheel vehicles will have its own local version

Anadi by Soleil Motors

t is every car lover’s dream. Top Marques Monaco, the showcase for the world’s best supercars founded in Monaco, will have its first Asian event this year, in Macau, between November 24 and 27. Held at the Venetian Macao, Top Marques Macau will feature around 60 exhibitors. “The Venetian hotel had the perfect exhibition space for it, perfect for a supercar show,” says the company’s chairman and founder, Lawrie Lewis. With the purpose of developing the luxury market within this region of the world, the show aims for sellers to bring and show off all their latest models. One of the supercars coming to the territory will be the spectacular Anadi, a sports car based on the Corvette chassis built in a limited series by Soleil Motors. Other super sports car manufacturers also represented at the event include Gemballa, Pagini, Keonigsegg and Gumpert. And that’s not all. Imagine if you were able to test-drive the Soleil Anadi or any of the other supercars on display. Wouldn’t you enjoy it? At Top Marques Macau, you may have the chance. During the event, Macau authorities have agreed to close 2.1 km of road around the exhibition space for the exclusive use of Top Marques Macau test drives.

Gemballa Tornado

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DREAM RIDES

The drivers’ choices

Two local racers reveal the rides they would like to be driving, if only they could

Good memories”

“

WHO André Couto, Japan Super GT driver DREAM CAR McLaren F1 BEST RESULT IN THE MACAU GRAND PRIX Formula 3 Macau Grand Prix winner (2000) “My dream car is the McLaren F1 street car. I’m talking about the old model. It is a very well built car. At the time, it was the best car in the world. The chassis is all carbon fibre and I had the privilege of driving it at the Japanese Grand Prix. It was one of the most expensive cars in the world. I have very good memories of that car. I was the last international racer to win with that vehicle. Now, the car has already stepped out of the racing circuit and that is one of the reasons why I’m so fond of it. Before racing with it, it was already a dream car. When I arrived in Japan someone asked me: ‘Do you want to race with this car?’ I said yes, without getting overexcited, but inside, I was bubbling. The racing model is slightly different from the street one. The latter is a little bit more luxurious, particularly the interior.”

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“A car with a lot of history” WHO João Fernandes, motorbike racer DREAM CAR Ferrari 250 GT DREAM MOTORBIKE Bimota BEST RESULT IN THE MACAU GRAND PRIX Macau Motorcycle Grand Prix Supersport 600cc – 3rd (2008) “The Ferrari 250 GT. It is a car with a lot of history and, since I like classic cars more than modern ones, I love it. Even though I know it’s impossible to ever buy one. For current cars, I would choose an Aston Martin. When I was little, I used to watch 007 movies with my dad and the Aston Martin was always related to James Bond. I love cars as much as I do motorbikes, but I don’t usually care for the more conventional brands, such as BMW or Mercedes-Benz. If you ask me about my dream motorbike, I would choose a Bimota, because it is special. Usually, all these vehicles are limited editions, and they have different characteristics from the Japanese brands. I actually have one Bimota in my garage in Portugal and this one I will pass on to my son or my grandson. I see motorbikes and cars not just as vehicles, but also as a collector’s items.”

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SHOW OFF

ACCESSORIES AND OTHERS HERE ARE OUR SUGGESTIONS FOR PRODUCTS THAT WILL LOOK GOOD IN YOUR CAR. CHECK THEM OUT

Chanel’s Plein Soleil When you’re behind the steering wheel, you’ll definitely need one of two things: if you have an eye sight problem, you’ll need some regular glasses; or, if it is a sunny day, you’ll need sunglasses. Either way, Chanel solves the lady drivers’ problems, creating a new eyewear collection. Available as sunglasses or with prescription lenses in lilac, caramel, nude and coal black, this collection shows a fresh and clean new line that recreates the nostalgia of the 1950’s.

P’6930 Chronograph It’s a unique watch design that will go hand in hand with your car. The Porsche Design P’6960 Chronograph takes its cue from the design of the legendary P’6910 Indicator. With a compellingly technical look and innovative material combinations, it is fashioned from selfcoloured or black PVD-coated titanium

Porsche Design P´3105 It’s always one of the most needed objects anywhere, either inside or outside a car. Porsche Design has created two very special exclusive writing tools in partnership with Pelikan. The P’3105 Pure Black fountain pen and the P’3105 Pure Titanium, limited to 200 pieces worldwide, are outstanding with their sleek elegance and timeless reserve.

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Rimowa Salsa Air Multiwheel This light weight, integrated mono telescopic system, and sturdy lining trolley will fit nicely into any trendy car. Rimowa Salsa Air Multiwheel’s case will store all your clothes allowing you to travel around easily. In five striking colours, ultra violet, inca gold, aquamarine, navy blue and the newest trendy colour cognac, the Salsa Air series is made of shiny polycarbonate with a multi-wheel system.

THE POWER OF ATTRACTION

SEX & CARS

t all depends on the person you’re trying to impress, but make no mistake about it, the vehicle you drive – or don’t drive – does matter. Let us explain. Imagine you’re trying to impress a local lady. As we all know, for Chinese, material assets are perceived as a status symbol and the car you drive really matters. So, don’t even think about cutting corners when it comes to buying your new set of wheels. If you have the money, don’t think of it as a useless expense. Women do tend to look at you more if you show up in a stylish car. Instead, think of it as an investment in your future. ‘But do I really want a woman who only likes me for my car?’ That’s hardly the question. Sure, if she really falls in love with you, she won’t care about your car; but for that to happen, she has to get to know you and first impressions are powerful. If you want to escape the drama of finding a parking space in Macau or avoiding traffic, then the right option is a motorbike. And, let me tell you, there is nothing sexier than a man riding a big, powerful motorbike – the ‘Easy Rider’ effect will do wonders. Now, imagine you are into a more eco-friendly type of woman – oddly enough, there are some in Macau. Then, you just have to appear on the right bike – choose carefully and you’ll make an impression. Even if you are already in a relationship, don’t think the type of vehicle you choose is completely meaningless. The right car can add some spice to your love life. If you still don’t have children but your partner is already thinking about a family, she will find you more attractive than ever if you buy a family car. Furthermore, other women just think sitting right behind their loved one on the back of a motorbike is the coolest image of all – feeling the wind in their hair will stir up desire under the bed sheets. One thing is for sure: whichever choice you make, just ask your partner beforehand. It will pay off in the bedroom.

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Next month look for FINE DINING Grand Canal Shoppes, The Venetian Macao 3D Gold 5cm Abiste Adidas Adidas Originals agnès b. Aigle Aimer Alqvimia Anagram Anteprima Apothecary Armani Exchange Arté Madrid Artini Ashworth Atelier Autore b+ab Bauhaus Belle Bershka Blancpain Blush Bossini Boucheron Boutique di Gondola Boutique V Breguet Breil Brooks Brothers BSX Butani BVLGARI Canudilo Canudilo Holiday Carat Carl F. Bucherer Cerejeira Century Chai CHARRIOL Chevignon Chocoolate Chow Tai Fook Watch & Jewellery Choi Wai Jewellery Chopard Cirque du Soleil Boutique City Chain CK Calvin Klein CK Jeans CK underwear Clarins Club Monaco Coach Codes Combine Columbia Sportswear Co. Converse Corona Crocodile Crocs Daks Damiani Davidoff Deicae Demandor Derain DG Lifestyle Store Diesel Dilys’ Dooney & Bourke Ecco Edelweiss Jewellery Elegant Prosper Elle Jewellery Elov Embry Form Empezoni Emphasis Jewellery Emporio Armani Emporio di Gondola EQ:IQ Esprit Eu Yan Sang Expressions Fabio Caviglia Fables Fancl Fila Florsheim Folli Follie Fossil Franck Muller

2115 2611 2629 2211 2211 2615 2419 2628a 2606 2446 2618 1036b 2442a 2623c 2015 2323 1013 2643 2312 2428 2108 2508 2706 2642 2210 2007a 2301, 2660 1036b 2011 2610 2711 2212a 2523 2006 2705 2005 2400 2207 2202 2402 2646 2402c 2432 2302a 2118a 2118a 2010 1044 2019a 2622a 2431 2601a 2625a 2446 2009 2423 2211 2211 2212a 2023a 2211 2101 1013a 1001/2623b 2107 2105 1019 2201 2632 2109 2616 2025 1020a 2609 K3 2207a 2646 1021 2020 2700 2660 2612 2303 2100 2103 1008 2300a 2635 2401 2603 2407 2413 2012

French Connection Furla G-Star Raw G2000 Geox; Joy & Peace Giordano girls talk Giviea Glashütte Original Godiva Göessele Grossé Guess Accessory Guess Jeans Hanmac H&B Medicine Shop Hauber Hearts On Fire Herborist Henry Jewellery&Watches HKW Medicine Shop Hogan Home of Swallows Hugo Boss Orange Label Hush Puppies i.t innée Izzue Jaquet Droz JC Shop Premium JC Versace Jean Scott Jean Scott Sport Jipi Japa Joan&David Kaltendin Kego Kilara & Ceu Killah Lacoste Lacoste Accessories Lancel Le Saunda Levi’s Links of London LLadró L’Occitane Longines Luisa Cerano Luk Fook Jewellery Lush M Missoni Malo Clinic Health & Wellness Malo Pharmacy Mango Karen Millen Marisfrolg Marjorie Bertagne Marlboro Classics Marathon Sports Massimo Dutti Maubossin Maud Frizon Paris Max&Co. Meng Tim Telecom Mercato MICHAEL WYLER Michel René Mikimoto Milestone Millie’s Mirabell Miss Sixty Mocca Moiselle Montagut Montblanc Monte Carlo Jewellery Moreline Murphy & Nye NaRaYa Natural Beauty Mix Nautica Next Nike Nine West Nokia Normana Omega Optica Boutique Optica Fashion Optical 88 Osim Oto Outdoor Fashion Patchi

2440 2628 2427 2303 2641 2218 2302c K5 2706 2640a 2627 2631 2601 2429 2417 2120a 2622 2008 K6 2013b 2637 2510 2201a 2031a 2111 2328 2636 2613 2523b 2112 2001 2007a 2433 2102a 2612a 2017a 2402a 2306 2306a 2508a 2403 2701 2210a 2425 2608a 2013c 2608 2400 2622 2018 2636a 2630 3015 2652a 2321 2605 2619 2648 2509 2221 2442 1013 2650 2623 K11 2508 2446 2703 2011 2112a 2405 2658 2438 2322 2607 2525a 2002 1001a 2639 2702 2212 2128 2709 2211 2432a 2605 2111a 1020 2003a 1010 2005a 2019 2106 2120 2523a 2111a

Paul & Shark Piaget Piquadro Private i Salon • Nail Nail Promod Pull&Bear Rado Rayure Rich Jade Rimowa Rockport Sa Sa Sa Sa Selective S. Culture S.T. Dupont Samsonite Sisley Sisley Paris Skechers Soft & Intimate Staccato Stefanel Steve Madden Stone Market Stradivarius STS Canada Sulwhasoo Sunglass 88 Swarovski Swatch Tara Moor The Body Shop The Kiss The Manchester United Experience Thomas Sabo Tie Rack / Bric’s Tiffany & Co. TISSOT Tokyu Walker Tommy Hilfiger Tonino Lamborghini Triple Five Soul Triumph and Hom Trussardi Jeans TSL Tumi Tung Fong Hung UM Undergarment United Colors of Benetton Venetian Flori Venilla Suite Verri Vertu Vilebrequin Wolford Yes Zara

2007 2013 2023b 2617a 2316 2525 2006a 2606a 2117 2708 2203 2318 2642a 2300 1022 2527a 2310 2630a 2216 2527 2319a 2421 2612b 2402b 2509a 2643k 2617 K9 2415 2426a 2426 2300b 2302b 2215 2426b 2435 2003 2411 2652 2710 2646a 2436 2220 2625 2022 2707 2102 2526 2308 2633 2600 2703a 2006b 2623a 2626 2023 2313

The City of Dreams Alfred Dunhill Bally Burberry Cartier Chanel Chopard Chow Tai Fook Coach Emporio Armani Gucci Hublot Hugo Boss i TO i Insider IWC Jimmy Choo LeSportsac Longines Marc by Marc Jacobs Omega PENACHE Ralph Lauren Rock Shop Rolex Salvatore Ferragamo Swarovski Tag Heuer The Bubble Shop Timeless Tudor Tumi Valentino Vertu Vivienne Westwood Yves Saint Laurent

L1, The Boulevard L1, The Boulevard L1, The Boulevard L2, The Boulevard L2, The Boulevard L2, The Boulevard L2, The Boulevard L1, The Boulevard L1, The Boulevard L1, The Boulevard L2, The Boulevard L1, The Boulevard L1 & 2, The Boulevard L1, The Boulevard L2, The Boulevard L1, The Boulevard L1, The Boulevard L2, The Boulevard L1, The Boulevard L2, The Boulevard L2, The Boulevard L1, The Boulevard L1, Hard Rock Hotel L2, The Boulevard L1, The Boulevard L1, The Boulevard L2, The Boulevard L1, The Boulevard L2, The Boulevard L2, The Boulevard L1, The Boulevard L1, The Boulevard L2, The Boulevard L1, The Boulevard L1, The Boulevard

The Esplanade, Wynn Macau

Shoppes at Four Seasons

Alfred Dunhill Bvlgari Chanel Christian Dior Ermenegildo Zegna Fendi Ferrari Giorgio Armani Gucci Hermes Hugo Boss Louis Vuitton Miu Miu Cigar Imporium Piaget Prada Sundries The Signature Shop Tiffany & Co. Tudor Van Cleef & Arpels Versace Vertu Wynn&Co Watches and Jewellery

The Encore, Wynn Macau Cartier Chanel Piaget

Grand Lapa Hotel Bally Burberry Cartier Christian Dior Cigar Imporium Alfred Dunhill Emporio Armani Ermenegildo Zegna Florinda Jewelry Hermes Hugo Boss Orange Label Louis Vuitton Omega Salvatore Ferragamo Valentino

13 1 12 11 17 10 9 2 16 8 5 4&5 6 7 15

DFS Galleria, The Four Seasons Bally Burberry Caran d’Ache Cartier Celine Chanel Chloe DFS Beauty World DFS Jewellery and Watch World DFS Sunglass World Dior Emporio Armani Fendi Gucci Hermes Jurlique Kiehl’s Lancome L’Occitane Loewe Louis Vuitton Omega Prada Ralph Lauren Salvatore Ferragamo Shiseido Swarovski Tag Heuer Tod’s Tumi Vacheron Constatin Van Cleef & Arpels

1123 1110 1129 1125 1109 1117 1123a

1101/18-30 1101/33-45 1101/36 1120 1101/23 1102 1108 1116 1101/26 1101/21 1101/28 1101/25 1121 1115 1101/45 1126 1111 1113 1101/29 1101/38 1101/33 1105 1101/31 1101/39 1101/40

Abiste Aquascutum Archaic Chinese Arts Armani Collezioni Audemars Piguet Bottega Veneta Brioni Canali Cerruti 1881 Cho Cheng Coach Cocco Cole Haan David Yurman Diane Von Furstenberg Dilys’ D’urban E-Rave CustomShop Fabio Caviglia Fish Spa Galerie du Monde Gieves & Hawkes Givenchy Guess by Marciano H&B Medicine Shop Hugo Boss Juicy Couture Just Cavalli Kate Spade Kent & Curwen Kenzo Kwanpen La Perla Marc by Marc Jacobs Max Mara Old House Gallery On Pedder Optica Privé Ports 1961 Samsonite Black Label Shanghai Tang Shiatzy Chen St. John Stefano Ricci Stuart Weitzman Tse Valentino Versace Vintage Fine Wines Vinum Fine Wine Merchants

1208 2836 1213 2805 & 2806 1130 & 1131 2845 2802 2850 2801a 2821 2856 2847 2812 2801 2846 1211 2835b 1210 2838 1209 1220a 2835a 2851 2858 1215 2807 2859 2841 2829 2837 2840 2817 2849 2831 2808 1220 2848 2823 2810 2825 2839 2833 2809 1128 2850a 2832 2842 2853 & 2855 1206 1216

One Central Bally Bottega Veneta Bvlgari Burberry Cartier Céline CentralDeli CK Calvin Klein Dior Dolce&Gabbana Emporio Armani Ermenegildo Zegna Europe Watch Company Fabio Caviglia Fendi Furla Gucci Hermès Hugo Boss Kenzo Lancel Leonard Loewe Loro Piana Louis Vuitton Marc by Marc Jacobs Marc Jacobs Max Mara Montblanc Officine Panerai Pal Zileri Rainbow Ralph Lauren Rimowa Salvatore Ferragamo Shiatzy Chen Tod’s Vertu

128-129 G8 G9-G10 125-127 G1-G2 G35 222 232-233 G30-G31 G36-G38 G32-G33 G39-G42 101-107 130 G11-G12 131 G24-G26/ 110-120 G13-G15 132-135 116 139 112 G5 G6-G7 G27-G29/ 121-132/ 229-231 117 G23 113 G4 G22 115 136-138 G19-G20 211 G3/108-109 110 G18 G17

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INVESTING IN CONTEMPORARY CHINESE ART IS A SCORCHING HOT TREND, WITH HONG KONG BEING THE PLACE TO TRADE. MACAU IS ALSO TRYING TO CARVE A NICHE BY KIM LYON

A MODERN MADNESS JUNE 2011

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“Forever Lasting Love” Zhang Xiaogang Sold for: HK$79 million When: 2011

“Bloodline Series: Chen Weimin” Zhang Xiaogang Sold for: HK$23 million When: 2011

“Mao Zedong: P2” Wang Guangyi Sold for: HK$19.1 million When: 2011

“Two People Under a Light” Geng Jianyi Sold for: HK$18.6 million When: 2011

ontemporary Chinese art is fast taking its place on the world stage as a worthy investment. As seen once again late last month, with the Hong Kong Arts Festival and Christie’s latest spring auction, the neighbouring SAR is the place where most of the action is taking place. More than half of last year’s global top ten contemporary artists by auction revenue were Chinese; Zeng Fanzhi, Chen Yifei, Wang Yidong, Zhang Xiaogang, Liu Xiaodong and Liu Ye. There were just three Americans on the list; Basquiat, Koons and Prince. Nouveau rich collectors from the mainland are crucial in promoting and sustaining interest, and could be a deciding factor in demand exceeding supply. The publisher of specialist website Art Market Monitor, Marion Maneker, explains the appeal of Chinese contemporary art in this part of the world: “There are a number of big collectors in Asia who are interested in helping define the culture of their region over the next century.” Special tools for investing in Chinese art have been created. The Shenzhen Culture Assets and Equity Exchange, inaugurated in 2009, is proving a trailblazer for art-as-investment infrastructure. The exchange functions as an alternative platform for the trading of a wide range of cultural assets, including artworks, luxury goods and films. The first art portfolio, in July last year, consisted of 12 paintings by Chinese artist Yang Peijiang. Thierry Ehrmann, the chief executive and founder of Artprice, an art market data organisation, talks about “a veritable revolution in the geopolitics of the global art market”. Says Mr Ehrmann: “Over the last 10 years, China jumped from ninth place to first place in 2010, becoming the world’s largest auction marketplace for fine art and overtaking the United States and the United Kingdom, the grand masters of the market since the 1950s.” Hong Kong has established itself as a pulse point in the Chinese contemporary art trade, rivalled only by Beijing. The situation in Macau is less clear-cut. Macau’s main potential market for art-sellers is the risktaking punters, not connoisseurs, experts note. Art Market Monitor’s Mr Marion Maneker says: “Opening art galleries in casinos is appropriate because buying any work of art is a gamble that it won’t lose its value entirely. Art being a luxury good, it is best bought with the kind of ‘free money’ gamblers feel their winnings are.”

Playing to the galleries

“No Smoking” Liu Wei Sold for: HK$14.1 million When: 2011 JUNE 2011

While some of the upmarket hotel-casinos, including MGM Macau and the Venetian Macao, have attempted initiatives involving art galleries, Macau simply does not have the commercial infrastructure of its neighbouring SAR, Mr Maneker explains. “Hong Kong’s role in the regional and international art market is more than just the fact that it has a few galleries. The city has created laws that make it advantageous to buy, sell and store art in Hong Kong. “Hong Kong is making a huge investment in building an arts and museum district. It is home to the sales of the two major international auction houses and it has the region’s most visible contemporary art fair.” Once vying with Singapore, Hong Kong has gone on to win the role of regional centre. “Macau may develop a nice

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gallery business but becoming an art centre takes more than that today,” Mr Maneker says. While galleries are mushrooming in Hong Kong, there are few that have sister branches in Macau. Galerie du Monde is one exception. Its satellite branch opened in 2008 at The Shoppes at Four Seasons, featuring works by young mainland artists. Managing director Fred Scholle says it is aimed at mainland collectors. “There is a very sincere interest in fine arts in Macau, but it is by a very small group of local residents, mainly European or Eurasian. The main art buyers in Macau are visitors, and they come from all parts of the world. “Perhaps there are many more visitors from the mainland, but when it comes to buying art, we still find that European visitors still account for more interest in what the gallery offers, over mainland visitors.”

Look, like, buy The economic upheaval of recent years dented the contemporary art market, pulling the plug on the careers of second-tier and third-tier artists in China. This has only recently started to change. Mr Scholle explains: “Much of that work lacked any JUNE 2011

For art, get smart S

uch is the abundance of bullish news about record-breaking prices for Chinese contemporary art, one might be persuaded to rush out and buy the latest work of say, Wang Guangyi or Fang Lijun, thinking it a failsafe investment. However, to profit from art requires a certain level of knowledge and expertise – and, of course, initial capital. Contemporary art depends largely on public tastes and other factors, making it a fairly speculative investment. There is something inherently enticing about the idea of wealth through passion. Although investing in art requires a degree of expertise, it is an excellent means of portfolio diversification. When other markets are failing, art investments may act as a cushion. Forget about dividends, bonuses or income. “Art is not a smart investment option over gold,” says the publisher of Art Market Monitor, Marion Maneker. Mr Maneker explains: “Whatever its limitations as a commodity, gold is a recognised, fungible and finite medium that acts as a ready alternative to currency. One invests in gold because the investor feels fiat currencies are not likely to be stable in the near term.” With painting, things are different, he says. “Art is a luxury good that sometimes – with the emphasis on sometimes – provides nominal financial returns when it is sold. Investing in art is like investing in real estate: it can be done but that’s not the point of owning art or real estate, and the vast majority of both are used for other purposes.”

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Lessons learned Forget about dividends, bonuses or income. “Art is not a smart investment option over gold,” says the publisher of Art Market Monitor, Marion Maneker talent and certainly lacked any soul. It was created mainly for the foreign art buyers and for greed both by those artists concerned and also the buyers on the mainland that were just looking for ‘face’ by buying the most expensive piece of the ‘flavour of the day’.” Global shifts have had a twofold effect: making contemporary art more interesting, and inspiring more potential buyers. “The world in general has been hearing more and more about Asia over the past 15 years or so, and certainly more and more interest has been established in the cultures of Asia,” says Mr Scholle. “So it’s natural that the arts of Asia are also finding new interest from people abroad, even those that have not visited this part of the world. And certainly Asian arts, for the most part, are priced very reasonably compared to contemporary Western artists.” Mr Scholle is enthusiastic. “One can still find some great art that is still very affordable to collect and enjoy. Look out for the young emerging artists that are doing some really excellent work but haven’t had the opportunity to show much of their work yet. If you like what they are doing, then acquire some of their work.” This is his standard advice: “Don’t expect prices to double in a year. But enjoy the works you buy, and – who knows? – you may end up with a winner in 10 years or so. Of course, works on canvas are still the most popular and command the highest prices by the big names, but it’s not an Asian medium. It’s a Western medium.” So what are the red hot trends right now? “Photography work has become extremely popular, especially with photo artists from the mainland. There are many talented artists working in this medium on the mainland, and their work is also very affordable,” says Mr Scholle. This is good news for young collectors whose budgets cannot stretch to the most fashionable names. “I personally also believe that traditional ink paintings are going to come back very strong over the next few years. There are more artists now on the mainland doing incredibly beautiful work in ink and ink-and-colour on paper – not traditional imagery, but very contemporary work. I think Chinese collectors will eventually revert to collecting contemporary art in a traditional Asian medium. When that takes hold, prices will skyrocket.” Do not be fooled into thinking that contemporary Chinese art is a failsafe investment. Take heed of Mr Scholle’s final words of wisdom: “What goes up can also go down. Don’t buy for appreciation (value). Buy for appreciation (enjoyment).”

nvesting for enjoyment is standard and solid advice, but it appears art aficionados are hungry for more buying wisdom. As an offshoot of the boom, courses pandering to the aspiring collector have proliferated, with one market feeding the other. Last month, before its spring auctions, Christie’s Education offered a new three-day course in Hong Kong, exploring the Chinese modern and contemporary art market. “Education is a core part of Christie’s mission. In addition to sourcing, researching and presenting the world’s finest artworks at our auctions, we see our role as being the conduit to knowledge about art from our highly trained specialists,” says François Curiel, president of Christie’s Asia. Last month’s course included an introductory overview of art history, exploring the origins of Western modern art, Chinese artistic expressions through ink and oil painting in the 20th century and the development of the Chinese avant-garde from the 1980s onwards. More practical questions were also covered, informing participants about ways to approach the market. “These short courses in Hong Kong offer anyone interested in this field a wonderful primer to further develop their interest, and continue our commitment to provide the highest quality education possible in art history, connoisseurship and the art market,” says Michael A. Michael, academic director at Christie’s Education. Sotheby’s, another international auction house with a presence in Hong Kong, is now offering short online courses teaching similar things, along with its conventional programmes. Macau is slowly following suit, having held an art investment tips session at the end of May.

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DANCE

WONDERLAND Dutch company promises to bring balt to life for young audiences

t may itself be entering its middle age, but Dutch dance company Introdans continues its mission to bring the highest quality dance to youth. And while Introdans is the only European ballet presenting modern dance pieces for children and youth, it is widely regarded among the top three dance companies in the Netherlands. The edgy modern dance troupe that began in 1971 has earned a top-flight reputation for modern ballet performances based on themes presented by the masters. The next stop for the company’s youth ensemble is Macau. Audiences here will have an opportunity to enjoy high-quality contemporary dance tailored to children and youth in a triple bill. The programme includes “Kiss Me Goodnight”, a playful work by Cayetano Soto, an emerging choreographer who dedicates the piece to his mother and adds a note of childish movement to the performance. In “Six Dances”, ballet master Jiri Kylián uses music by Mozart as the inspiration to create a comic dance with dark humour. A cast of dancers dressed in costumes from the 19th century create a funny and inspiring piece. The performance peaks with “The Park” or “Parken”, JUNE 2011

by another dance legend in Mats Ek. This is a piece with enchanting choreography in which all kinds of fleeting and bizarre scenes take place in a magical park. Overflowing with imagination and colour, it turns the familiar archetypes into something fresh and dynamic. It is a piece full of mischievous humour that will delight both children and adults.

Respectable air The Introdans Ensemble for Youth, to give the company its full title, began with little more than a healthy dose of ambition. Ton Wiggers is the company’s co-founder and now general director. His manifesto was to make dance accessible – even familiar – to as large and diverse a public as possible. If necessary, he was prepared to use non-traditional and unorthodox methods to communicate his love of dance. Throughout the 1970s he took on the roles of dancer, choreographer and artistic director. Later, he concentrated on the extensive tasks of artistic director. On the 25th jubilee of Introdans in 1996, Wiggers was made a Knight in the Order of the Dutch Lion and has since been heavily involved in cultural festivals in the Netherlands. Since 2009, Introdans has been part of the basic national infrastructure of the Dutch Ministry of Education, Culture and

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Science. Princess Margriet of the Netherlands is the patron. While acclaim and awards have flowed, the company remains true to its mission to present high quality dance to a broad public, particularly through its outreach programme, “Introdans Interaction”, a creation that was born in 1989. The programme works in schools and in many other environments, exposing both the very young and old through a range of educational activities, day projects, interactive workshops, after-show talks and other behind-the-scenes events. Interaction also organises days for teachers and indepth sessions for the elderly.

Meet the team For the trio of performances Macau audiences will have the opportunity to see, there are three choreographers with three distinct styles. Mats Ek was born into a famous family of dance but felt no attraction to the art as a child. By 17, he was enrolled in a summer course in modern dance but instead took theatre, directing plays in Stockholm between 1966 and 1973. By 1972, he had returned to dance training and in 1976 completed his first choreography. His work is characterized by social involvement, psychological dilemmas and subtle humour.

Czech Jiří Kylián completed his first successful choreography in 1973 but it was 1978 that saw his international breakthrough with “Sinfonietta”. The work was made especially for the famous Spoleto Festival in the United States and was well received. Kylián has received various awards, including the Edinburgh Festival Critics Award in 1996 and 1997. Various works by Kylián have been performed by Introdans Ensemble for Youth: parts from “Dream Dances” (1997), three parts from “Toy Stories” (1999), “Piccolo Mondo” (1999), part of “Symfonie in D” (2002) and the famous “Stamping Ground” (2006). In the 2006/07 season Introdans Ensemble for Youth danced “KYLIÁN4KIDS”, a complete programme with works by Kylián. The youngest of the trio, Cayetano Soto began his dance education in Barcelona at the Instituto del Teatro and continued his studies at the Royal Conservatory in The Hague. In 2006, Soto won the Hapag Lloyd prize for the creation “24FPS”, which he made for the Royal Ballet of Flanders. In the 2009-10 season, Introdans Ensemble for Youth performed the “BONTE BENDE” programme, which partly consisted of Cayetano Soto’s new creation, a world premiere for this ensemble under the name “Kiss Me Goodnight”.

Dancing in the Wonderland DATE: Saturday, July 8 TIME: 7.30pm VENUE: Grand Auditorium, Macau Cultural Centre TICKETS: Between MOP200 and MOP80. A 10-percent

discount is available for CCM Friends and some Bank of China customers. AVAILABLE: Macau Cultural Centre and Kong Seng Outlets More information is available at the Cultural Centre website, www.ccm.gov.mo JUNE 2011

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SOUNDS OF NOSTALGIA Portuguese fado singer Ricardo Ribeiro and the Macao Chinese Orchestra harmonise for an East-meets-West concert

an Portugal’s most traditional music, fado, blend with the sounds of the Macao Chinese Orchestra? The answer is definitely “yes”. After having embraced the voice of Portuguese fado singer Camané in 2007, this time the ensemble invites Ricardo Ribeiro for a concert entitled “Fascinating Macao”. The result not only highlights Portuguese fado but carries the essence of Lisbon to Macau, while Ribeiro dares to step outside the bounds of fado and of time. JUNE 2011

Ricardo Ribeiro

Besides the Macao Chinese Orchestra, Pedro de Castro on Portuguese guitar, Filipe Silva on bass and Jaime Santos on classical guitar will accompany Ribeiro in Macau. For this concert the orchestra also reawakens the spirit of an important collaborative project with Portuguese flautist Rão Kyao by opening the show with several themes from “Macao Junção”. Not only was “Macao Junção” released as an album by the Macao Cultural Affairs Bureau, it also figured in the soundtrack of Macau’s handover ceremony in 1999. Ribeiro is a fado singer from Lisbon with a traditional style whose full-length solo album releases are few and far between, yet still popular. Born in 1981,

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What is fado? F

ado music is usually labelled as the most traditional form of urban folk music from Portugal. It can be traced back to at least the early 1800s. Fado is usually characterised by mournful tunes. The lyrics are often about lost or unrequited love, death and general sadness, implying a bitter-sweet longing. There are two main styles. Fado from Lisbon is usually performed by a singer accompanied by two or three instruments, Fado from Coimbra is sung exclusively by

men and closely linked to the academic traditions of the University of Coimbra, one of the oldest tertiary education institutions in Europe. Portugal has applied for fado to be recognised by the United Nations Educational, Scientific and Cultural Organisation as part of the intangible cultural heritage of humanity. If the application is successful, it will stand side by side with Argentina’s tango and China’s art of paper cutting.

Macao Chinese Orchestra

he is part of Portugal’s new generation of fado singers, which is spearheaded by female artist Mariza, who last performed in Macau two years ago. Ribeiro made his commercial recording debut in 2004 with “Quando Se Gosta de Alguém”, his contribution to the compilation album “A Tribute to Amália Rodrigues”, followed later in the year by his own full-length solo album. Though it would be half a decade before his next full-length album, Ribeiro kept active, recording themes for several compilation albums. In 2007 his song “Casa de Fados” featured on the soundtrack of the documentary film “Fados”. One year later, he featured on the album “Em Português” by Lebanese oud player and composer Rabih Abou-Khalil.

Only last year did Ribeiro release his second solo album. “Porta do Coração” was a top-five hit on the Portuguese album chart and spawned the single “Moreninha da Travessa”. The Macao Chinese Orchestra was founded in 1987. Pang Ka Pang is now its artistic director and principal conductor. Entrenched deep in the ensemble’s DNA is a long tradition of musical exchange. The orchestra regularly cooperates with many Chinese and foreign musicians and its repertoire covers a wide range of musical genres, from traditional Chinese melodies to contemporary Chinese compositions, that explore and develop the art of “symphonicising” folk music.

Fascinating Macao FADO SINGER: Ricardo Ribeiro PORTUGUESE GUITAR: Pedro de Castro BASS: Filipe Silva CLASSICAL GUITAR: Jaime Santos

Macao Chinese Orchestra CONDUCTOR: Pang Ka Pang WHEN: June 19, 8 pm WHERE: Grand Auditorium,

Macao Cultural Centre TICKETS: MOP40 to MOP100 TICKETING HOTLINE: 2855 5555 WEBSITE: www.icm.gov.mo/ochm

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Philanthropy

Seeking the cure

The Adelson surname is closely linked to gambling and now medical philanthropy

heldon Adelson and his wife, Miriam, are mostly known for controlling Las Vegas Sands, the parent company of Sands China, and increasingly for sponsoring a medical foundation bearing their name. The Dr Miriam and Sheldon G. Adelson Medical Research Foundation was established in 2006. It is an institution operated independently by the Adelson family and does not have a direct connection to Las Vegas Sands or Sands China’s corporate social responsibility initiatives. The institution is committed to collaboration between international researchers who participate in finding treatments to prevent, reduce or eliminate disabling and life-threatening illness. The chairman is Mrs Adelson, who is a specialist in internal medicine. She has also devoted herself to the treatment of chemical dependency and drug addiction. The first initiative of the foundation in Macau took place in April, by bringing to the territory David Da-I Ho, a renowned expert in the field of HIV/ AIDS research, for a lecture. Mr Ho, who was elected Time Magazine’s “Man of the Year” in 1996, shared some insights at the University of Macau regarding a demonstration project headed by him in Yunnan province, targeted at preventing mother-to-child transmission of HIV. “It is part of me giving back to Macau,” Mrs Adelson told Macau Business. “I would like to do something here for the local community, like I did in Las Vegas [establishing a drug abuse treatment and research clinic]. In the medical field, of course, that is my passion.” The foundation has no roadmap laid out but Ms Adelson stresses she is open to requests from local authorities. Worldwide research supported by the Adelson Medical Research Foundation includes research into neural repair and rehabilitation, which seeks to manipulate the regeneration of axons in the brain, spinal cord and peripheral nerves. Another initiative involves cancer research, seeking therapies targeted at the mechanisms that make malignant cells. According to Mrs Adelson, scientists funded by the foundation have already wrote more than 200 research papers.

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JUNE 2011

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Entertainment Entertainment

The Macau Business Team

HAPPY BIRTHDAY TO US! Macau Business got one year older last month. To help us celebrate, over 200 guests attended our seventh birthday party by the Venetian Macao swimming pool – great people at a great location, courtesy of Sands China Ltd, the venue sponsor. As tradition demands, Macau Business hosted the birthday party, and it was also us who – with the support of our generous partners - handed out the gifts in our traditional lucky draw. Our special thanks to: EPLD - Portuguese Wines & Gourmet Products; PokerStars Macau, Morton’s The Steakhouse, SJM - Grand Lisboa, Davidoff/Blue Bell, Macau Golf & Country Club; Caesars Golf; Club Cubic; Westin Resort; Galaxy Entertainment Group; City of Dreams - Hard Rock Hotel and Grand Hyatt Macau; Mandarin Oriental, Macau; the Venetian Macao; Wynn Macau; Sofitel at Ponte 16; MGM Macau; Original Tech; and Louis Vuitton. Happy birthday to us... and to you too, dear readers!!!

Samba time! JUNE 2011

Robbert van der Maas and Robert Drake

143 Photos by: Gonçalo Lobo Pinheiro

Artur Santos, Luís Melo and Mafalda Melo

Danny McDonagh

Katharine Liu

Beth Doherty

Herman Leong

Gigi Lee, António Mil-Homens and Swallow Xu

Rafael Gama, Daniela Angeja, Ana Telo Mexia and José Carlos Angeja

Ana Chaves, José Costa Santos, Isabel Castro, Fátima Valente, Ana Tique and Diogo Baptista

Eric Saudete

Patrícia Neves and Fernando Ferreira

Paulo A. Azevedo welcomes Cath Burns

Richard Whitfield

Xenia Choi, Simpson Lei and Vanessa Estorninho JUNE 2011

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Entertainment

Venetian entertainment

Kenny Lo and Olivia Ng

Diana Massada, David Punter and Maria Ramadas JUNE 2011

Gilberto Lopes

Reggie Martin

Juliet Risdon and Andrea Mansfield

Luciana LeitĂŁo, Diana do Mar and Emanuel GraĂ§a

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Maria Massada, José I. Duarte, José Reis and Rita Amorim

Daniel Cheng

Jennifer Chan and Jacqueline Wu Photos by: Gonçalo Lobo Pinheiro

The Wynn team

Alberto Kwan

Jeniffer Liao

SK Chan, Paulo A. Azevedo, Jonathan Wong and Luis Pereira

Priscilla Leong

Frederico Conde

Phyllis Sio and Starr Xian

Adalberto Barros and Mário Alves

Virginia Leung JUNE 2011

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Entertainment

Sandy Walter won the Louis Vuitton handbag

On behalf of Louis Vuitton, Paulo A. Azevedo delivers the award to Diana Massada

Michael Jensen delivers the MGM Macau award to Jos茅 I. Duarte

Phyllis Sio hands out the Sofitel at Ponte 16 award to Herman Leong

Ant贸nio Mil-Homens receives the Wynn Macau prize by Katharine Liu

On behalf of Mandarin Oriental, Macau, Ada Chio delivers the award to Daniel Cheng

Larry Petryk won the Club Cubic award, handed out by Bruna Pablo

JUNE 2011

Guiomar Pedruco receives one of the City of Dreams prizes from Charles Ngai

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Virginia Leung receives the Venetian Macao award from Kevin Clayton

Alberto Kwan delivers the Original Tech award to Ana Chaves

Ada Chan delivers the Westin Resort award to Simpson Lei

On behalf of SJM - Grand Lisboa, Tiffany Chan delivers the prize to Xenia Choi

Charles Ngai hands out one of the City of Dreams awards to Sandy Walter

Larry Petryk delivers the Macau Golf & Country Club prize to Diogo Baptista

Andrea Mansfield hands out the Mortonâ&#x20AC;&#x2122;s The Steakhouse award to JosĂŠ Manuel Cardoso

Linda Wong delivers the Galaxy Entertainment Group award to Wendy Lam

Jennifer Welker receives the Davidoff/Blue Bell award from SK Chan

Yves Duron receives the PokerStars Macau prize from Danny McDonagh

Li Wei hands out the Caesars Golf award to Beatrice Yeung

Dave Williamson receives the EPLD - Portuguese Wines & Gourmet Products Macau prize from Diogo Giraldes

JUNE 2011

148

Corporate Social Responsibility

CHARITY IN STYLE More than 260 guests gathered last month at Four Seasons hotel for the International Ladiesâ&#x20AC;&#x2122; Club of Macau Charity Ball 2011. True to form, the club, also known as the ILCM, once again organised a fantastic fundraising event. At the end of the evening, over MOP750,000 (US$94,000) was raised to help a host of organisations and institutions which help those most in need in Macau.

Jean Scott, David and Matt Helm

Olinda Leung, Quean and Alan Chan, Candy Sum and Ana Paula

Joseph Chan, Faye Ho and Sophie Lei

Linda Switzer and Beth Doherty

Donald Shaw and Christina Cheong JUNE 2011

Phoebe Lai and Victor Lei

Meg Pringle and Lain Duckworth

Ally Li and Elsa Song

Elsa Carreiro, Supha Kook and Nicole Helm Terry Jursa and Julie Kirkman

Olivia and Patrick Tse

Vonny Tjhin, Dabbie and Tony Lam

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Michael and Winnie Ngo

Elsa and Marco Leung

Elsa Yue, Andrea Mansfield and Sophie Lei

Don Hall, Malaveka Singh and Supha Kook

Royal Rowe and Robbert Van Der Maas

Quean Yiu, Ally Li and Juju Schiff

Diana, Ingrid Masselink, Andrea, Helen and Jean

Gary and Nina Lichtenstein

Ron and Natalia Leung

Greg Mansfield and Olinda Leung

Sophie Lei, Lillian Le Truong, Angelique and Winnie Wong JUNE 2011

150 150

BEST BUDDIES “Very strong personality” or “bravura” are not the kind of words one usually expects from Steve Wynn when he refers to his rival, Sheldon Adelson, the boss of Sands China. But last month, in a rare moment of solidarity, the chairman and chief executive of Wynn Macau backed up Mr Adelson against the accusations from former Sands China chief executive Steve Jacobs. Mr Jacobs accuses Mr Adelson of using improper leverage on Macau government officials. Frozen Spy wonders: are the two U.S.-based casino moguls finally burying the hatchet? Will they eventually team up to endure intense scrutiny by U.S. regulators every time Macau pops into the picture? Will MGM Resorts International back them up?

GALACTIC DREAMS The imagination of Galaxy Macau’s marketing personnel amazes Frozen Spy: it is a bold statement indeed to say that the property is Macau’s “first truly integrated destination resort”. What are those geniuses arguing? That the Venetian Macao is only a gambling parlour? That City of Dreams has nothing else to offer besides gaming tables and slot machines? Please, marketing boys and girls, let’s be a little more creative and stop using clichés that no longer make sense.

BIG BROTHER MISSING WORKERS Every businessman in Macau complains about the lack of available workers and all are always asking for more imported labour. So it came as a surprise to Frozen Spy when the government last month announced that by the end of March there had been 106,000 approvals of applications to import labour, but there were only around 81,000 imported workers actually here. The government says this discrepancy is normal. To Frozen Spy, it seems very strange to see some companies closing down because they cannot import labour, while there are 25,000 applications out there waiting to be acted on. Maybe the system needs to be fixed. But that wouldn’t please a bunch of people who are happy with the present loopholes, would it?

JUNE 2011

The number of public sector workers has increased every year since 2005, according to official data. At the end of last year, Macau had almost 23,000 civil servants, 4.51 percent more than a year before. Unfortunately, the efficiency of the public administration machine has not increased at the same rate. Frozen Spy hopes we are not creating a monster that will grow too big to manage and be completely unproductive. In some services, the threat is imminent. Want examples? Just look at the portfolio of secretary for transport and public works Lau Si Io and you will find a handful.

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FULL SCHEDULE At every Macau Arts Festival, drama group Dóci Papiáçam di Macau debuts a new satirical play spoken in pátua, the Macanese dialect. This year the group chose to talk about the panda craze that took over Macau with the arrival of Hoi Hoi and Sam Sam, the panda pair offered to the territory by Beijing. For the audience, it was a blast. Well, not for everyone. Secretary for administration and justice Florinda Chan, who was in-charge of the panda process, was spotted in the audience but our sources say she left during the intermission. Frozen Spy is certain that Ms Chan has a well-developed sense of fair-play and did not leave because the play mocked the expensive MOP90 million (US$11 million) panda pavilion, among other things. For sure, she left because she had a busy agenda to attend to.

MACAU’S MADNESS Here is a true tale, one that took place in Macau – a place where reality by far beats fiction.

ON THE ROAD, AGAIN The debate that chief executive Fernando Chui Sai On spends too much time outside of Macau has been running for a while. Recently, one newspaper’s front page report noted that Mr Chui had spent 80 percent of his time in Macau and was not travelling nearly as much as had previously been reported. Politicians and scholars commenting on the news said the problem was not the time Mr Chui had spent on the road but the quality of his stand-ins when he is either on holiday or a business trip. Frozen Spy wonders why all the fuss? Macau has been on autopilot-mode for some time, whether the chief executive is in town or not.

Phone conversation Civil servant: Your transcript doesn’t specify you have a major in Geotechnics. Engineer: I’m sorry but the modules I have taken all show I have a major in Geotechnics. CS: So that means you aren’t a civil engineer? E: Miss, that means I am a civil engineer, with a major in Geotechnics. CS: But that isn’t on your transcript. E: Miss, in the university I graduated from, years one to three of the civil engineering bachelor share common modules, and years four and five are dedicated to specific modules, according to the chosen major. Anyone analysing the transcript with a minimum-level of understanding would know my major is in Geotechnics. CS: But your transcript doesn’t specify years. Besides, we can’t just input anything in our database. So, what’s your degree in? E: Civil Engineering, with a major in Geotechnics. CS: That isn’t what’s written here. What is Geotechnics? I don’t understand what it is. What is it in Chinese? [The engineer provides translation] CS: That means it is not civil engineering? E: Miss, there are many different types of civil engineers. There are structural engineers, traffic engineers, and urban planning engineers. CS: I know, but we must only input the correct information. E: Miss, if this is too complicated, I will go to your offices myself and erase the part “major in Geotechnics”. CS: No, no, no. You cannot erase it because the information must be consistent and accurate. But what you wrote as your major is not consistent with your degree certificate. That means you are not a civil engineer? E: Miss, I seem to be unable to explain myself to you. Just do whatever you like. CS: We will input the data as you have filled in the forms then.

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June 2011

index

7 Luck Casino

www.7luck.com

Aristocrat

Pages 60-61 & 75

www.aristocratgaming.com

Aruze Gaming

Page 65

www.aruze-gaming.com

Aspect Gaming

Page 95

www.aspectgaming.com

Atronic

Page 91

www.atronic.com

Bally Technologies

Pages 71 & 104

www.ballytech.com

BNU

Page 21

www.bnu.com.mo

FutureLogic

Page 63

www.futurelogic-inc.com

Galaxy Entertainment Group

Page IFC

www.galaxyentertainment.com

GPI Gaming

Page 73

www.gpigaming.com

IGT

Page 81

www.igt.com

Interblock

Page 97

www.interblock.eu

Jumbo Technology

Page 83

www.jumbogames.com.tw

Konami

Page 85

www.konamigaming.com

Macau Cultural Centre

Page 02

www.ccm.org.mo

Macau Daily Times

Page 129

www.macaudailytimes.com.mo

Macau Post Office

Page 47

www.macaupost.gov.mo

Melco Crown Entertainment

Pages 17 and IBC

www.melco-crown.com

MGM Macau

Pages 5-6

www.mgmmacau.com

MGTO

Page 01

www.macautourism.gov.mo

Mortonâ&#x20AC;&#x2122;s The Steakhouse

Page 25

www.mortons.com

Our Dental Clinic

Page 43

www.ooioc.com

PokerStars Macau

Page 19

www.pokerstarsmacau.com

Sands China

Pages 03 & 32-35

www.sandschinaltd.com

Shuffle Master

Pages 87 & 89

www.shufflemaster.com

SJM

Page 111

www.sjmholdings.com

Sofitel

Page 10

www.sofitel.com

Transcity Asia

Page 69

www.transcityasia.com

JUNE 2011