I'm sure you're all very much aware of the recent volatility in global financial markets. It is becoming clear now that the current market uncertainty and gloomy sentiment is likely to continue for a considerable period of time, and inevitably that will have a knock-on effect on many different sectors of the community in the coming months.
Although the local economy in general has not shown any signs of substantial impact at the moment, I think we all are living on the same island and cannot be spared from the economic consequences in the longer term. That's why in regard to the current market environment, I will not be surprised if the economic slowdown in Hong Kong starts to affect the Club's racing turnover.
The Club has also introduced the new place odds calculation mechanism this season. We've observed that total place investments over the first two race meetings have been a bit lower than that of the corresponding period for last term. We will continue to monitor this trend and see if our racing customers still need more time to adapt to this new model, or whether there are any other reasons behind it. I would also like to hear more views on this new mechanism and you all can leave your message to me through this blog.
As it's not going to be an easy year for us, I believe it's the right time for the Government to take positive action and reconsider offering the Club more flexibility in its horse race betting operations. We have long been arguing the case for a relaxation of the existing regulations that limit our overseas simulcasts to just 10 races a season. Given the present economic scenario and the general trend of betting deregulation that is benefiting other racing jurisdictions in the region, it is clear that the Club can no longer afford to stand still.
It is also vital that the level of tax levied on bets from overseas can be lowered, to allow the Club to be more competitive in this market. I hope the Government will take the opportunity to rethink some of these issues, so that we can maintain our role as a major tax contributor and provide stable revenues to the public purse. Otherwise, the losers will be the community at large and the many charitable projects that depend on funding from the Club.
Without the Club's support, it would also not have been possible for Hong Kong to co-host the equestrian events of the Beijing and Olympics and Paralympics this summer. In addition to providing the venues, our Club provided a lot of professional support and many of our colleagues put in huge efforts to make the events a success. On Thursday evening I hosted a party in a Central restaurant to thank them all for their hard work over the past three years. Without their great contributions, this historic event could not have been so successful. I'm delighted that they all enjoyed a great party on Thursday.
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