The racing season came to an end a week ago and I was delighted that we were able to report quite encouraging end-of-season figures, particularly for the racing turnover which reached a 10-year high of HK$80.4 billion. The betting tax on racing we contributed to the Government also rose to an eight-year high, coming very close to HK$9.6 billion.
In my view, these are some very satisfactory results, especially when you consider the fact that just five seasons ago in 2005/06, the sluggish economy and stiff competition posed by illegal bookmakers and regional gaming operators had driven our racing turnover down to a critical level of HK$60 billion.
Fortunately, with better economic conditions, additional race meetings and measures to reform the racing tax system, we have been able to strengthen the competitiveness of our racing operations and their ability to attract significant amounts of money back to the legalised market, resulting in our racing turnover increasing by one-third during this period.
Such a strong rebound suggests that what the Club has been doing to promote and expand its racing product is what the public and racegoers want. I take this opportunity to give my heartfelt thanks to everyone in the Club’s work team. Without their massive contributions and dedication in the past few seasons, it would not have been possible for us to attain these achievements.
Besides supporting public spending through betting duties, the Club continues to make substantial contribution to the community through its charitable donations, which last season reached an all-time high of HK$1.62 billion. We estimate that some five million local people will benefit from the 114 charity and community projects to which we have committed funding in the past year. Some 46% of these donations are directed at helping the needy in society, who always command our highest priority.
Last year, we established the Jockey Club Emergency Relief Fund to enable us to give even more timely help to those affected by natural disasters, accidents and other unforeseen incidents. Over the past 12 months, we have made immediate relief payments to more than 160 individuals and their families. We feel happy that we've been able to help these people resume their normal lives.
It's my hope that we can continue providing the same level of support to the public purse and the community in future years, and if possible increase it still further. But we cannot afford to be complacent, as competition for Hong Kong people's leisure spending is growing all the time, especially from overseas and online gaming operators. If we want to keep this spending in Hong Kong, returning benefits to the community, we need strong support from our Government and decision-makers, to ensure that we can compete on a level playing field.
It is noteworthy that in the 2010/11 racing season, more visitors to Hong Kong have been attending our races during their stay. This demonstrates the attractiveness of our racing product to overseas fans, boosted by the fact that Hong Kong races are now broadcast live to foreign racing clubs or media in 11 overseas countries. This should perhaps prompt the Government to study the possibility of enabling overseas bets to be commingled into Hong Kong pools. This is becoming a major trend in global racing and should it be made feasible here, would give overseas bettors access to one of the largest liquidity markets in the world of racing. In turn, this would generate significant extra tax revenue for the Government.
For our simulcast overseas races, we have seen some encouraging growth in the past year with total turnover jumping to HK$1.35 billion, nearly 60 per cent up on the HK$850 million in 2009/10. This generated tax revenues of HK$183 million for the public coffers. There can be no doubt that our extended coverage of simulcast race programmes this season has help stimulate greater interest in the sport worldwide among our local racing fans.
During our summer break in Hong Kong, there are quite a number of other big races being held in Europe. At classic distance we have the King George VI and Queen Elizabeth Stakes being held at Ascot in late-July. For the mile we will see some of the best European milers competing in the Prix Jacque le Marois at Deauville in August. In recent years we have also sponsored a Hong Kong Jockey Club race day at the French track in early August.
The present restrictions imposed by the Government, however, forbid us from arranging any race simulcasts between mid-July and late August. That means local racing fans cannot view some of the most awaited races, such as the first encounter between Frankel and Canford Cliffs in the Sussex Stakes, and the dual between Workforce and Rewilding in the King George.
As more local racing fans have begun to follow global racing in recent seasons, I think we need to revisit the possibility of simulcasting a limited number of overseas races during the summer months. This will ensure that we can channel the growing interest and betting demand to the legalised market, instead of prompting them to resort to online bookmaking websites. We will examine this issue further and try to instigate discussions with the Government. Rest assured that the Club will do whatever it can to meet the needs of its racing fans, and ultimately benefit the whole of Hong Kong.
With the summer break now started, I will be departing for Germany on vacation shortly, so that I can spend more time together with my dad and family at home. I will also attend a few big races to be held in the UK and France during my stay in Europe. I shall stay in touch with you all to let you know my thoughts and things that happen around me.
I should like to send my best wishes to all readers for a great holiday!
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