Friday, October 5, 2012

Tourism rescues China

With hopes high that the Chinese tourist is soon to fly to the rescue of tourism in the Far North it was interesting to see this post today at Macrobusiness: The Chinese tourist rescues his economy

It is Golden Week in China and Macrobusiness had noted some rebound in Macau casino revenue, albeit from relatively low levels of growth.  Also noted is comment from BA Merrill Lynch:

Robust Golden Week tourism data also suggest that China’s GDP data, despite the low quality, might be more real than what’s perceived by bears who are focused too much on power usage and industrial production. Tourism data also point to a shift of consumption toward leisure, a new source of demand.
This has also been reported elsewhere:
Golden Week tourism growth points to soft landing
Golden Week boom bouys airlines

Perhaps I should follow the lead of Macrobusiness and pop down to the casino to ask the doorman how trade is going? Reef Casino results were subdued for the first half with the upper level closed for renovations.

However, the (thinly traded) share price has been recovering over the past year and it is noted in recent disclosures that director Julian Hercus has been topping up his holding and acquired an extra 31,129 shares at an average $2.35 since the latest results were released. Hercus now holds 281,129 shares via his super fund.

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