Hong Kong Jockey Club riding high

Horse racers compete at the Hong Kong Jockey Club, one of the largest racing organizations in the world. (Photo: CFP)
The Hong Kong Jockey Club (HKJC) doesn't just horse around. It plays an enormous role in Hong Kong's economy and is much more than a non-for-profit racing organization. The club, though not immune to the economic crisis, has fared well during the economic meltdown, a senior executive said in an interview with the Global Times.

HKJC, founded in 1884, is the single largest taxpayer in Hong Kong, thanks to its unique non-for-profit business model, said the executive, who requested anonymity.

"There are no shareholders in HKJC or bonuses distributed by the club," he said.

Economic backbone

In the fiscal year 2008/2009 ending June 30, of the HK$20.14 billion ($2.6 billion) in betting and lottery revenue, 64.4 percent was paid as betting duty and profits tax to the Hong Kong Special Administrative Region (HKSAR) government, according to HKJC's annual fiscal report. The approximately HK$12 billion ($1.55 billion) in duty and profits tax accounts for 10 percent of the fiscal revenue of the HKSAR Government, according to the executive.

The club helps stabilize Hong Kong's employment as well, the executive said. As one of the city's largest employers, it currently employs about 25,000 full-time and part-time workers and the part-timers account for about 11 percent of the part-time employees in Hong Kong. Every race day is prime time for the part timers as well as restaurants, bars, news stands, and taxis in the area as lots of people rush to the race track and off-track betting outlets of the club.

Challenges and opportunities

HKJC, like other commercial institutions, was not immune to the impact of the financial tsunami crisis, said the executive.

The club's surplus after taxes plunged from HK$3.27 billion ($421.96 million) in 2007/08 to HK$707 million last year, and the club only appropriated HK$500 million ($64.52 million) to The Hong Kong Jockey Club Charities Trust last year, compared with HK$1.78 billion ($229.69 million) in 2007/08, according to its fiscal report.

Source:Global Times

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