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THE M3: JUNKET COMMENTS; MACAU GRAND PRIX; PACKAGE TOURS; CASH HANDOUT

The Macau Metro Monitor, November 16, 2011

VERY IMPORTANT PERIOD Inside Asian Gaming

IAG says currently most junkets are operating under a profit-sharing model with the most aggressive offer at 47% of win. IAG understands from insiders that the big junkets are all operating under a profit-sharing model while the smaller junkets and sub-junkets are all operating on the traditional RC model, capped at 1.25%.  IAG says there was a persistent rumor regarding a major Macau junket which had halved its credit issuance in recent weeks. 

IAG added that there has been a industry rumor that a Macau operator has a packet of bad VIP debt dating back several years that has so far been kept off the operator's books.  There's a suggestion in the past few weeks that some form of mutual write downs between the operator and the junkets concerned may serve in effect to cancel out the debt. 

RATES OF MACAU HOTELS SHOOT HIGH DURING GRAND PRIX WEEK Macau Daily News

The 58th Macau Grand Prix will kick off on November 17th.  Hotel rooms are expected to be short in supply.  The room rates for some hotels near the race circuit go up three times higher than normal weekends, rocketing from around MOP1,000 to more than MOP3,000.  

VISITOR ARRIVAL STATS TELL US WHAT WE SUSPECTED Intelligence Macau

Based on the latest visitor arrival data which indicate that Mainland visitors on package tours (compared with those on IVS visas) are on the rise, IM says someone is getting more aggressive in the mass market and paying more for tour packages from travel agencies.  Every property in Macau has paid middlemen described as "executives in the people-moving business" during their opening, although how much they pay and for how long has varied.

NEW CASH HANDOUT FOR 2012 Macau Business

Macau CEO Chui said the government will keep the cash handout of MOP7,000 (US$875) for each permanent resident in 2012.  Non-permanent residents will get MOP4,200.  That is the same amount residents received in 2011, but divided into two cash handouts.