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ISSUE 96 - Apr 2012
 
 
What are your expectations for the gross gaming revenue growth of Macau’s gaming industry in 2012?
Decline
Growth above 20 percent
Growth from 10 to 20 percent
Stagnation
 
 

Sink or swim

Issue 10 (2/2005)
Posted: 12/1/2008 4:12:48 PM
Rating:     0% (0 votes)
  

It's the doldrums for Mr. Kuok. The June and July fishing bans on the South China Sea are in effect. For Kuok and the several hundred fisherman who man Macau's remaining fishing crafts, it's the "summer holiday", a time marked by contemplation about an uncertain future. Since the ban went into effect nine years ago, Kuok and fishermen like him in Macau have been spending their soupy hot summers stewing about their ever-shrinking prospects. To whittle away the hours during the two month moratorium, the government has told them they can use the time to hem nets, shave barnacles off their boats, spackle cracks or whatever their crafts need for repair. They can use the time to break open their accounting books, properly place their patacas and conserve energy before hitting one of the world's richest seven seas again in August.

Leaflets for the fleet
This year on the first day of the ban, Kuok and others were greeted with leaflets that were distributed by the Macau Port Authority, Marine Patrol Division of the Customs Service, Fire Services Bureau, Combustibles Security Committee and Health Bureau as well as the Fishermen's Mutual Help Association. The groups were promoting an awareness campaign to lessen the impacts of "fire, crime and typhoons". Kuok and other fisherman were also warned by the Leading Group of Fishers in Guangdong, a maritime monitoring institution, that they were prohibited from leaving the port without authorisation or engaging in fishing activities. As if Kuok needed to hear that. What he really needs to hear about is the status of the loan he applied for from the Macau government. He needs the cash to repair his vessels and for rising fuel costs. Comments Kuok, "As the fuel is very expensive, we can only refill once every few months and carry a large quantity on the vessels. The average diesel fuel expense account are for over two-hundred thousand patacas, which occupies 70 percent of the overall cost". And with resources dwindling, he has to float farther afield for fish. Kuok says, "We look for fish in Hainan and we buy fuel in Hong Kong". He also hopes that the government can provide more measures for the fishing industry, such as subsidising fuel fees to save the sector from drowning. There's been some waves made already.

Fish fund and fees
The government has established the "Fishing Industry Development Committee" to coordinate new policies and measures. In order to assist the sector's sustained development, they've spent MOP 50 million to establish a "Fishing Development and Support Fund", which provides interest-free loans to fishermen to help them pay for production facilities. The fund provides assistance in seven areas; the repair of fishing vessels; the maintenance or replacement of facilities and equipment; the purchase of more efficient fishing tools or equipment; the installation of navigation instruments, freezers or cabin refrigerators; the purchase or construction of new fishing vessels; financial relief due to "unforeseeable or unavoidable" problems due to the fishing ban period; and for production activities which are approved by the Port Authority to maintain or improve the work of the applicants.
According to the President of the Fisherman's Mutual Help Association, Fung Hee, whilst the fund's maximum loan itself is not very high (MOP 500,000), it nevertheless provides urgent help to fishermen who are stuck on the rocks. Fung, himself a former fisherman, says that nearly 20 applications have already been received. Given the rising costs of fuel and pressed resources, there will likely be more in the future. Just four years ago before the big casino boom, a 20-litre barrel of diesel oil cost MOP 300. Now, that same sized barrel of diesel oil goes for more than double the price at MOP 700 to 800.
hese hikes have put a serious dent in the industry given that its three categories of ships (shrimpers, trawlers and smaller craft) are consistently expanding their fishing grounds and markets. True, it is easy for fisherman who primarily operate in the Pearl River Delta to transport their catch to the market on the same day. Things get trickier in the two other areas Macau's fisherman flock to: Yangjiang and Hainan to the south and the Taiwan Straits and coast of Zhejiang province to the north. Whatever they catch in those waters, they sell to nearby territories and Hong Kong. That's a tall order because a good catch depends on the weather, water temperature and demand in mainland markets. There's plenty of competition from fishermen on the Chinese mainland too. Others skirt the mainland equation altogether and have their boats equipped with freezers so the catches can reach Macau or Hong Kong. Whatever profits they make (typically several hundred thousand patacas per annum) largely go to pay off the debts for the construction of their vessels as well as repair and maintenance work. It doesn't leave them with a lot of money in the end, says Fung.

Sinking feeling
For example, Kuok needs to spoon out nearly MOP 300,000 every month just on operational costs. There's also competition as the industry starts to see larger craft, such as the new ten-foot vessels that can net tons of fish off the coasts of Hainan and Zhejiang. Fung points out that there are other of reasons behind the shrinking of the fishing industry. Aside from youngsters having higher academic qualifications and therefore not continuing their fathers' business, the gradual reduction in the annual catch over the years is another major reason. Fung notes that in the 1970's there were 1,000 fishing boats in Macau while the number dropped to 600 in the 1990's. According to statistics released earlier this year, there are now less than 300 fishing vessels. And what boats are left, also serve as their homes; they dislike living at the mercy of the skyrocketing property rates that local landlubbers are coping with. Explains Fung, "Fishing vessels are mainly made of iron or wood. The former cost around five million patacas while the latter are thirty-four million patacas". Fung indicates that the fishing industry was once a pillar of Macau. And fisherman like Kuok are becoming as rare as the availability of the fish the catch.

The mainland's catch

Sou Chon Heng, the President of the Fresh Fish Trader's Union, indicated that most aquatic products sold in Macau are from Mainland saltwater and come from fresh water fish farms. Over 20 fishing wholesalers in Macau sell Mainland fresh fish or frozen fresh fish. He added that over 100 types of fish can be bought in Macau. The most commonly seen are salted fish including the monk fish, horse-head fish and big eye fish. Fresh water catches include carp and four other farmed fish, which usually originate in the Pearl-River Delta. Sou stressed that the fish caught by Macau fishermen only take up a small percentage of the overall fish sales. Some fishermen catch fish and sell them at stalls, which are located in S‹o Loureno Market and Patane Market. The rest are sold to two local fish wholesalers, with each sell between 4,200 to 4,800 kilos per day.

By Wang Xiangfei



Headlines

Facts on Figure April 2010

Home truths

A comprehensive study into Macau's property market says flexibility and caution should be the watchwords as officials shape the future of public and private housing. But most of all, home ownership should be promoted.

Lap of luxury

The Waterside in One Central on the edge of Nam Van Lake is the jewel in the crown of Macau Property Opportunities Funds portfolio. Leasing has just started and prospects are looking good .

Winning bet

A couple of hiccups aside, the Macau Property Opportunities Fund has sailed through the global financial crisis, seeing its asset value increase. The company believes its investment choices have left them well positioned. A Hong Kong listing would make sense, they say, but investors will have the final say.
Other Macau Latest News

TransAct appoints new sales manager for Asia

Rashid Suliman will be responsible for the sales of the company’s products in Macau

Venetian hosts Ice World

The exhibit will last until September 16

Melco Crown to participate in Dragon Boat races

Around 50 Melco Crown employees have joined forces to form two teams

Bank tellers with two-digit salary growth

Wage increases outpace the inflation rate

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