LEISURE LETTER (10/6/2015) - 0880.HK, AIRBNB, CCL, UBER

TICKERS: 0880.HK, AIRBNB, CCL, UBER

EVENTS     

  • Oct 8: Hedgeye Macau call 2:30pm
  • Oct 8: Tigre de Cristal opens

COMPANY NEWS 

0880.HK -  The chief executive of casino operator SJM Holdings Ltd, Ambrose So Shu Fai, believes measures the central government intends to take to help gaming in Macau recover from its slump will have the desired effect, Rádio Macau reports.   

The Portuguese-language radio station quotes Mr So as telling reporters that the easing of curbs on mainlanders visiting Macau would bring more tourists to the city. 

ARTICLE HERE

Takeaway: We still recommending a long trade in Macau stocks but we struggle to see what the government can do over the near term to boost GGR. 

AIRBNB - Westpac Bank confirmed on Tuesday that Westpac and Airbnb are teaming up in a new campaign to aid Australians with the home ownership process. The campaign, called "Spare, Spare Room" will be officially launched on Wednesday. Throughout the campaign, Australians will have the opportunity to win one of 50 $250 gift cards to accommodate their guests through Airbnb.  

ARTICLE HERE
 

CCL -  Star Princess docked at Canada Place in downtown Vancouver, BC, early Sunday with reported norovirus on the ship.  On the 15-day cruise to Hawaii apparently 61 were sickened by the virus.  

ARTICLE HERE

UBER - A small startup quietly operating in Boston says it can build a better business by taking less from drivers, and charging passengers lower prices.

  • Fasten’s service is identical to Uber’s low-cost UberX service, which employs regular folks to ferry passengers in their own cars, except for a couple of important details. 
  • Instead of taking a percentage cut, say 20% to 30%, from each ride, it only takes $1 per ride (or a fixed daily or weekly fee, according to Fasten’s website). 
  • For passengers, Fasten can potentially be cheaper because it doesn’t use “surge pricing,” price hikes that kick in when demand goes up. Instead, Fasten says it lets passengers increase their fare offers if drivers don’t accept their ride requests quickly enough. 

ARTICLE HERE

INDUSTRY NEWS    

Korean Casino Deal - A deal announced on Monday could lead to the development of one of the largest foreigners-only casino resorts seen so far on Jeju Island in South Korea.  The country’s Lotte Tour Development Co Ltd announced that a privately held affiliate, Dongwha Investment and Development Co Ltd will be building the biggest integrated resort on Jeju Island.  The resort could have up to 1600 hotel rooms, 200 tables, and up to 400 slot machines. 

ARTICLE HERE

Takeaway: Chinese tourists can travel to Jeju Island without a Visa for up to 30 days, making Jeju a viable option. 

China Outbound Travel - According to the China Outbound Tourism Research Institute, Hong Kong, Tokyo and Bangkok were the top three outbound tourism destinations, while long-haul destinations in Europe and America have also increased significantly.  As the Golden Week holiday coincided with the mid-Autumn festival this year, Chinese workers taking an extra three days off work would have had a 12-day holiday, encouraging longer haul travel.  

ARTICLE HERE

REGIONAL REVENUES (SEPT):

Arkansas (total): +20% YoY