Saturday, July 26, 2008

Ask, and ye shall NOT receive


The Penisula Hotel in Philippines, charges 1800 Philippines pesos for a journey to/from the airport, equivalent to $40 US.

A licenced taxi costs around 300.

To catch a taxi from the airport, you get a voucher from the taxi controller stating the destination and give it to the driver. I asked approximately how much it would cost for my destination and was told, it is metered.

I have a dialog with the taxi driver but watch the meter as it increases. As we round the Mikati block to the hotel I see the driver turn off the clock and when I ask how much, he says 500.

I blow a fuse and tell him in uncertain language that I know what the meter just read and know what he has done. I then tell him that since meter is reading nothing, I don't need to pay him anything ! He panicked muttered something about a misunderstanding, apologized etc but since I was tired and wanted to get to the hotel room, I could no longer be bothered with this so I paid what I last saw.

Left alone, I probably would have given him a 500 note and said keep the change.

Ah, Caveat Emptor since I don't know Latin for 'Greedy bastard'.

Phileas Fogg,
Manila,
26th July 2008.

Friday, July 25, 2008

You can checkout any time you like, But you can never leave!


“The Philippine Star” is usually a source for a laugh or two today’s newspaper didn’t fail with a story titled ‘Motel Chain shuts down for God’.

The quote the article:

There will be fewer lovers’ trysts in Metro Manila as the owner of one of the most popular motel chains in the country said he has succumbed to “God’s will” and decided to padlock the last of his establishments.”

Wyden King, chairman of the Anito Hotels Inc. (AHI), said the closure of the 137-room Anito Arellan Kalookan in Barong Barrio was the proverbial last nail on the coffin of his family’s decades old motel business.

The ways of Lord are very strange and we can’t fully comprehend them. Many people, too, do not understand our letting go of this business,” King, 54, said.

We did not want the devil’s mannon going into the family coffers,” said King, a born-again Christian.

Later on:-

King dramatized his distain for his old business by slashing with a knife the familiar red apple logo on the canvas signage that was brought down form its perch during ceremonies marking the Kalookan motel’s closure.

A white tarpaulin over the main gate read “ Anito Hotel closed for the glory of God”.

The closure was also a religious event attended by family and friends, and even former self confessed patrons of the motel.

Pastors of the Caloocan Minsters Associated (Camia) and the Metro Manila for Jesus Movement officiated at he religious ceremonies.

The ceremonies included King’s sprinkling of water on a bed to exorcise “the devil’s presence.”

King said the beds were mute witness to sins like abortion, suicide, incest and drug abuse, amongst others.


Huh? Suicide and drug abuse I may get as going on in a hotel room, but mute witness to incest?

Back to the story:

“I declare all the beds redeemed, (the hotel) totally closed and destroyed in the name of Jesus. I also destroy my covenant with the devil,” he said.

“Our love for mammon had blinded us all these years. I declare this covenant totally cancelled.” He declared.

Hallelujah. Another soul saved. Lets have a round of “Kum by ya”.

Oh yeh, I almost forgot to mention:

King also asked foregiveness for city officials by encouraging corruption by offering bribes, among others, to promote his business.

And finally this:-

King told The STAR that the business was making more the P2 Million a day before the oil crunch. He admitted that theh current crisis had affected revenues but this was not why he gave up the business.

He said some 11,000 individuals “used” his motels daily and their “lives were ruined by falling into immoralty using these rooms”.


C'mon, if he was so religous, why didn't he change the hotels to a lodge for pilgrims or homes for the poor. Sounds like he is getting closure to death, he's cleansing the negatives on his sin balance sheet.

With declining revenues, there is a lesson that Las Vegas hotels should learn in this story. The City with the slogan “What happens in Vegas, stays in Vegas approach”, should take a hard cold look at what goes on in their rooms.

It is scandalous and I am outraged.

They a missing out on such a gold mine where they should be promoting more decandence to get the tourists in.

Imagine this telephone conversation:

“Hello, BL Z Bub Hotel. Room service?”
“Yes, this is room 666. I like to order some heroin before I perform an abortion on my daughter.”
“Sorry sir, we are out of heroin”.
“Oh ok, what about crack.”
“Sir, we have crack. I’ll have someone bring it up”.
“Whilst I am at it, I was wondering if you have any other debauchery specials?”
"We have a special on human sacrifices. Buy one, another killed for free”.
“Are they free range? I am a environmentalist back home you know”
“No sorry sir, we only have factory farmed humans”
“Then I’ll skip it, Thanks. I pride myself in being green”.
"Have a nice day and thank you for staying at BL Z Bub. The hotel that brings the devil out of you”.


Phileas Fogg,
Manila Peninsula Hotel,
26th July 2008.

Sunday, July 6, 2008

All bets are off

It seems that our earlier January blog prediction on Las Vegas' declining fortunes is coming closer to reality every day.

From UK's Telegraph:


Casino owners in Las Vegas have been warned that America's economic slowdown had left the gambling mecca facing "its most severe downturn ever".

Challenging the resort city's traditional boast that it was virtually recession-proof, shares in companies that operate casinos have dipped to new lows this week.

With casino owners plunging into heavy debt and even bankruptcy, industry experts have warned that the world's gambling capital faces the toughest economic challenge in its history.

Keith Foley, a gaming analyst who tracks 55 gambling companies for Moody's, a credit-rating company, said the casino industry was "in the midst of what could be its most severe downturn ever"

"After 9/11, when it bounced back really quickly, everyone thought Vegas was immune to just about anything," he said.

"It is suddenly obvious and maybe kind of scarey that it is not." A combination of rising petrol prices, the housing crisis and cuts in airline services have helped drive down the number of people coming to the Nevada resort city and the amount they are spending there.

The spending downturn has primarily affected the shops and restaurants on which the casinos rely for most of their profits rather than the gaming rooms.
I read on:

Many casino operators have borrowed heavily to finance ambitious expansion plans intended to keep Las Vegas as the world's gambling mecca.

Four casino companies have already gone into bankruptcy this year, including Tropicana Entertainment, which defaulted on $2.7 billion debts.

Harrah's, the world's biggest casino group by revenue and owner of Caesars Palace and seven other big casinos on the Vegas "Strip", posted a fourth-quarter loss in the Spring.
Also from Las Vegas Review Journal, the bright lights don't look so bright:-

Forecasting the demise of Las Vegas is a game that's as tired as puns on the city's ubiquitous "what happens here, stays here" advertising slogan.

But for the first time in recent memory, two benchmark indicators of the health of Las Vegas, the number of hotel rooms in development and airline seat capacity at McCarran International Airport, are moving in opposite directions.

According to the Official Airline Guide, seat capacity at McCarran is expected to decline 12 percent in the fourth quarter. Meanwhile, the number of available hotel rooms on the Strip is expected to increase 18 percent by the end of 2009.

That has investors wondering how resort operators intend to maintain the 90 percent occupancy rates to which they've grown accustomed with fewer available airline seats for customers and drive-in traffic slacking off as gasoline prices approach $5 per gallon in parts of Southern California, the No. 1 source of Las Vegas visitors.

"In our opinion, this could not come at a worse time for Las Vegas," Wachovia analysts Brian McGill and Denis Kelleher wrote in a note to investors. "With the cuts in airline capacity, we do not think there will be enough seats to fill the new room supply."
A major Duh for LV!

Looks like the gambling Corporations have been participating in their own products and spinning that wheel. Betting on being in the black but ends up in the red.

What is ironic is that Casino operators get a mention in Taleb's book "Black Swan".Overview. Though in this Bloggers opinion, this event was not a black swan but entirely foreable as it highly correlates to the housing bubble.

Me no more Heloc = Me no more travel, me mo more gamble.

Room rates in LV are already coming down. The legendary hotel buffets offerings are being cut back. If this continues, the Elvis impersonators will end up pawning their "Blue suede shoes" and moving to "Heatbreak Hotel".

Phileas Fogg,
Houston, Texas
6th July 2008.

For further read see also WSJ article.