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A Special International Report Prepared by
The Washington Times Advertising Department - Published on October 25, 1999
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Advertisers
(1) Macau Trade & Investment Promotion Institute
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For many people, including his more than 10,000 employees, Ho is, the "big boss", the largest single corporate employer in Macau. His influence and community-wide respect is reflected in all facets of daily life in Macau. Dr. Stanley Ho Avenue was named after him in 1998, making him the first Chinese in the history of Macau to receive this honor in his lifetime. Of course, Dr. Stanley Ho, who has been decorated numerous times by the Portuguese government, including the Gra-Cruz da Orem doiy Infante D Henrique, the highest honor for a civilian, bestowed upon him by the President of Republic of Portugal in 1995, has always recognized the need to put back into the local community the profits from his casino operations. A quick glance at the landmark Lisboa Hotel is evidence enough of Ho's multibillion dollar success as busloads of Chinese eagerly push their way into the hotel's cavernous and opulent smoke-filled Las Vegas-style gambling halls. Every day of the week, 24 hours a day, Chinese gamblers frequent the nine casinos of Macau. Every hour, 3 million or more patacas (the local currency) worth of chips are bet. The total amount of bets in Macau's casinos in 1998 was in excess of $2 billion.
The annual take from the nine chrome-embellished casinos, all of them open round the clock, is approximately $700 million. These hefty profits have been ploughed back into the economy for years and in fact, due entirely to STDM's complete financing, keep Macau's harbor open to the world. Ho's company has spent in excess of $20 million every year, since the signing of the gaming franchise contract, dredging the silt-filled navigation channels of both the outer and inner harbors. A cornerstone of Ho's commitment to Macau is education. Numerous scholarships have been awarded to students to further their studies and funds have also been made available for the establishment of the Macau-Sino-Latin Foundation and the Chinese Culture and Arts Association of Macau. The very agile and elegant ballroom dancing septuagenarian works out of his expansive corner penthouse office lined with numerous awards, citations, magnificent museum quality jade sculptures, and honorary degrees from all over the world. From this Hong Kong summit located at Shun Tak Center, Asia's gaming czar overlooks the busy and colorful Victoria Harbor and his fleet of turbo-powered ferries bound for Macau with Hong Kong gamblers. In this exclusive interview with The Washington Times he shares his observations on Macau, China and the Handover. Question: How will the upcoming Handover impact on your gaming and entertainment business operations in Macau? Answer: The continuation of the existing gaming industry has been guaranteed by the Macau Basic Law, and it is up to the SAR Government to formulate its own policy in this area. Also, according to the Chief Executive designate, Edmund Ho, (no relation) the gaming and entertainment industry is the pillar industry of Macau, which has to be well-controlled by the government and improved. Clearly, we are taking steps in this direction by upgrading the gaming industry in terms of modernization and professionalism. Q: Your exclusive franchise (STDM)expires in 2001. Do you fully expect that the gaming franchise will be re-extended to you or will it be an open and competitive system? A: It is up to the SAR government to decide, after making a thorough study of the pros and cons of the case with the blessing of the Central government. It is a serious case, as it will affect the future economy and very survival of Macau. There should be no rush in making premature decisions to open up the exclusive franchise for a certain period. There should be sufficient time allowing for readjustments. Since I have been engaged in the entertainment business for over 37 years, I am confident of the strength of STDM. Q: What would be the potential economic impact on Macau if the franchise becomes competitively open? A: The SAR government could indeed run the risk of not receiving a stable income from the taxes of the gaming industry, which presently occupies more than half of the public revenues. Intense competition in this small enclave might result in a drop of revenues which is already quite fragile with so little reserves left over from the previous government. These shocks in any change could also affect the labor market, a quarter of Macau's population depends heavily on employment from the gaming industry. Finally, the social obligations attached to the franchise could not be fulfilled if various license holders waive their responsibilities. Q: Your operations contribute over 50 percent of Macau's total revenues. Is Macau still Stanley Ho's island and will it be in the future? A: It is a historical fact that since STDM took over the franchise in 1962, the gaming industry has developed rapidly and has turned Macau into a "Monte Carlo of the East". In fact a few years ago in 1996, the number of tourists visiting Macau exceeded 8 million, which was 20 times Macau's population. STDM has also made significant contributions to the modernization of the territory in terms of infrastructure, tourism, real estate development, cultural, educational, as well as welfare and social facilities. Q:The gaming industry in Macau has had its share of bad press, what do you think is necessary to present a different family-centered entertainment focus in Macau without sacrificing the core gaming industry? A: We are learning from the examples of Monte Carlo and Las Vegas by gradually diversifying the gaming industry into a so-called "cultural tourism," based on the enclave's rich 400 year-old cultural heritage. One of the latest attractions to be developed or rather that is in-progress is the Macau Tower, a project in which we have invested over $120 million. Upon completion, the 338 meter high tower will be among the top ten in the world. We are also suggesting to the government the need to develop more theme parks with strong cultural content. Macau can indeed become a city of culture and relaxation, not just a city for gambling. Q: Your holding company, Shun Tak, through the transportation arm of the company entered into a new joint venture with China. Do you envision further areas of cooperation and business ventures with Beijing's blessing? A: Recently, Shun Tak has expanded its shipping operations into China via our acquisition of CTS-Parkview and a joint-venture of our shipping operations with China Travel Group. In addition to cost savings and an improvement of efficiency, this merger has enabled us to gain immediate route expansion from Hong Kong and Macau into the Pearl River Delta-Shenzhen and Guangzhou. With an expanded fleet of 32 vessels, including the largest fleet of jetfoils in the world plus 12 vessels operated by CTS-Parkview, we are currently exploring further business expansion opportunities into the Pearl River Delta region. Q: Former Tai Fung banker, Edmund Ho, is soon to take control of Macau as the new Chief Executive. He has gone on record as a loyal defender of the contributions of the gaming industry, how do you characterize your relationship with him? A: The relationship between the two Ho families has always been excellent. (The two families are not related.) His father, Ho Yin, the famous leader of the local Chinese community was also a good friend of mine. There is no way to break this friendship, which is based on mutual trust, the rule of law, and a concern for a better future of Macau. Q: What are the major challenges facing Macau as we approach the new millennium? Some people have suggested that as long as there is gaming there will always be triad-related problems contributing to Macau's unsavory international image. Do you agree? A: The major challenge for Macau into the new millennium is first of all, to guarantee a smooth transition of power and to implement the "one country, two systems" concept. This naturally would include streamlining the public service with consistent and adequate reforms, including an intensified campaign against corruption within the police force and to really clean them up from triad infiltration. It is unfair to say that the casinos are the only source of organized crime. In the case of Macau, the deterioration of the public security has a lot to do with the regional environment, where triads from Hong Kong, Taiwan and the mainland are taking shelter in Macau because of its lax immigration policy, intensifying the turf war between them. Subsequently, one of the top priorities of the SAR government is to restructure and reinforce the police and to enhance cooperation between the police and the casinos in fighting and controlling the triads. Q: Many of your business associates in Macau and even Hong Kong believe that close relationships with China will offer greater business prospects. Is this true for you, particularly in respect to the Pearl River Delta and its future and your company's expansion plans? A: Yes, I do believe that a close relationship with China will offer excellent business potential. China has a population of over 1.3 billion with a GDP record growth of 8 percent in 1998. Naturally, the return of sovereignty of Hong Kong and Macau to China has further enhanced the communication links and economic growth in the Pearl River Delta. Beijing has also recognized the important role of STDM in the future development of Macau beyond 1999. Of course, I envision further areas of cooperation and more business ventures with China. There is great potential and we (STDM) intend to participate in Macau's growth, to improve the social stability, and economic prosperity of the territory long after 1999. Q: What is the future role of Macau? A: After the handover of Macau to China, Macau can further develop its role as a bridge between China and Europe. This is yet another challenge for STDM after its over 30 years' history in Macau. |
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(1) Betting on the future with China |
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Although the Portuguese have left their distinctive cultural imprint in Macau strongly reflected in the 18th century architecture of Largo de Senado, it is Stanley Ho, a self-described energetic 78 -year-old merchant and one of Asia?s most widely known tycoons, who has been largely responsible for Macau's modern transformation into a city of bright lights, casinos, hotels, bridges, major land fill reclamation projects, and the development of the new international airport.
His flagship company, Sociedade de Turismo e Diversoes de Macau (STDM), has held the gambling monopoly franchise in Macau since 1962 and in the process has transformed this once sleepy Portuguese entrepot into the "Monte Carlo of Asia." Ho's operations alone provide more than 50 percent of the government's total revenues.