The long wait is now over and I'm delighted that we were formally able to unveil the details of our Racecourse Master Plan to the media yesterday. All of us at the Club have put a lot of time and effort into this important project, which will be a vital weapon in helping us secure the long-term sustainability of horse racing in Hong Kong in the face of ever-growing competition, by ensuring that we can continue to offer our customers world-class facilities and dedicated services. The revival of racing turnover in recent seasons has put the Club in a stronger financial position to proceed with this very large-scale investment.
Our plans have been formulated in line with comprehensive customer surveys and research over recent seasons, which has helped us better understand the services and facilities that different segments of our customers expect. They will not only provide enhanced facilities for our Owners, Members and other existing racing fans, but also address the needs of customer groups that will be important to our future development, including the young professional set, corporate clients and high value customers.
We have already completed Phase 1 of the Master Plan at a cost of around HK$700 million, and our surveys show strong increases in customer satisfaction and raceday utilisation. We will now commence Phase 2, involving a total investment of some HK$3.1 billion. This phase will include substantial facilities upgrades at both racecourses, aimed at turning them into venues that provide an unforgettable sporting and entertainment experience for all our different customer groups.
In general, we will position Happy Valley as a night-time venue for corporate entertainment, young customers and new racegoers, while for Sha Tin we will strengthen its standing as a weekend destination that makes full use of Hong Kong’s world-class racing events to showcase the Club in the international sporting arena.
Most racing papers have already given widespread coverage to our plans today, so I don't think you need me to list all the proposed new facilities one by one here. If I did, it would become the longest blog I've written yet in five seasons!
But I do want to reiterate here how much importance the Club places on maintaining the sustainability of horse racing in Hong Kong, as this is not merely an issue for the Club, but for the whole community. Besides the 26,000 staff directly employed by the Jockey Club, tens of thousands more in the transport, catering, media and other sectors earn part of their living from racing, while up to 70% of the population benefit in some way through charity and community projects funded by the Club.
However, the Club has been facing fierce competition in recent years from other leisure and entertainment operators in the region, especially the Macau casinos and the junket operations closely associated with them. Our latest estimates indicate that Hong Kong people lost nearly HK$26 billion in Macau casinos in 2010, a figure has almost trebled in just five years. Indeed this spending now significantly exceeds our combined gross revenue for horse racing, football and the Mark Six, which was HK$23.7 billion last fiscal year.
In addition, the Club has to pay the highest betting duty on racing in the world, which reduces our competitive edge, and is further constrained by Hong Kong's very stringent regulatory framework, which has not kept pace with the realities of today's global gaming environment.
Despite all these challenges, we are fully committed to maintaining Hong Kong's position as one of the leading racing jurisdictions in the world. Only by doing so, we can ensure that the Club continues to serve as a major tax contributor to Hong Kong, and fulfils its community and charitable missions over the long term.
Tomorrow’s season opening race meeting at Sha Tin Racecourse symbolises a great starting point for us, and all of us at the Club are energised and ready to take up this challenge. As a gesture to mark the new season, all of you will receive a door gift of the season’s racing calendar and pen upon admission. Acting Chief Executive of the Hong Kong SAR Henry Tang will join us for the traditional gong striking at the season opening ceremony, starting at 11.45am. So please come and join us in the Parade Ring if you arrive early at Sha Tin Racecourse tomorrow.
It is good that after a lot of preparations the 2011/12 season finally gets out of the gates. As always, the HKSAR Chief Executive’s Cup will be the highlight race of season opening day. My general advice for the beginning of the season is to look for horses which show their fitness is well advanced, may not have the best form at the end of last season, as well as trainers who like to have a winner at the beginning of the season.
In the HKSAR Chief Executive's Cup we have only 8 starters but a lot of quality. The pace should be good to slow which favours horses like Multiglory, Good Words as well as Little Bridge who are expected to be positioned in the front of the field. I expect a good performance from the Tony Cruz horses in general because his horses look well advanced in their training. Multiglory moves well and should control the pace of the race from the front. I still prefer him over Good Words who is training well but I have some doubts if he is up to this level especially in Sha Tin. Derek Cruz has Joy And Fun in good shape. Despite the slow pace, I have the impression that he’s back to his best and with his rating drop considerably, he’s for me the horse to beat. Little Bridge from the Danny Shum's yard, which has a good early form track record, looks to be a danger to Joy And Fun, as well as Rich Unicorn from John Size for a place.
Meanwhile, Caspar Fownes-trained duo Lucky Nine and Green Birdie will be contesting against 13 top-class Japanese sprinters in the G2 Centaur Stakes in Japan, which will be simulcast for betting in Hong Kong. It appears that both of them have shown nice form ahead of this race. I think the race should give Hong Kong a chance to have a first overseas winner for the new season. Both horses have good chances for me and their main opposition should come from Dasher Go Go, A Shin Virgo, as well as San Carlo.
Anyway, I hope you enjoy with our programme. See you at Sha Tin tomorrow! I hope all of you also have a wonderful Mid-Autumn Festival holidays with your friends and families early next week.
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