It's shocking how much we gamble
5/11/09: 'It's shocking how much we gamble' - Melbourne Cup is theirs, but in NSW the race is taken much more seriously – and interest is growing.
Melbournians spent $39.6 million on Cup Day, but Sydneysiders forked out a staggering $56 million.
And as interest rates move up steadily - it's become clear that gambling is on the rise.
In my 15 years of living in Sydney, I am sure the festivities have escalated. Has anyone else noticed?
I was partying at The Ivy and there was no sign of the recession - as over $170k was raised in half hour amongst the Sydney "A-list" for cancer. From where I was sitting the day looked distinctly more like a social barometer than an economical one!
Certainly in Sydney, the celebrations started almost at dawn - with fashion finery on display from as early as breakfast time.
Queues formed at the live site in Martin Place to take bets from 6.30am.
The subsequent attention to festivity, parties, milliners, fashion and beauty preparation, alcohol and food consumption no doubt got cash registers ringing - at least retailers and the hard-hit hospitality industry were smiling.
By 11pm, taxis were impossible to find and the streets were filled with staggering individuals suffering in 37 degrees heat with high heels in hand.
Ironic that on the same day, the RBA announced its latest decision on interest rates at 2.30pm - half an hour before the race on which Australians jointly bet more than $100 million each year.
Fascinating, that we Aussies spend more money on gambling than on household bills, definitely not a sign of ‘cautious’ times. Or is it?
An analysis of the Australian Bureau of Statistics data by CommSec found the average Australian household spent $2292 on gambling last year compared with $1830 on gas and electricity bills, $2056 on petrol and $1996 on telephone and internet bills.
Craig James, chief economist at CommSec called the figures "staggering". This is less than people spend on perfumes and cosmetics, beer and wine, stereos, TVs and DVDs. Can you believe it?
And what of productivity and business and lost revenue?
Figures researched this week show the cost of a Cup holiday to the Sydney metropolitan area would be more than $389 million. The cost to the entire state would be $581 million. So what do you think?
Do we work through or give up and party? Is it an opportunity to socialise and cement links with employees, and colleagues, or watch the race on the TV at home alone.
Many in business say this is a key event to socialise and network, I wonder how many deals have been sealed over a drink and bet?
It is in no doubt that the leisure industry definitely sees a huge boost to profits at this time of year with many venues charging top dollar for tables or just entry.
As for racing and international trade, six international horses lined up for the $5.6million Melbourne Cup race - the world's richest horse race - so can we build a case that our strong Aussie dollar has attracted international interest?
Is the Melbourne Cup another revenue generating opportunity for the economy?
However, do you as a business owner feel under pressure to 'get in the spirit of things' in front of staff and not be seen as 'scrooge of race day'?
What are your thoughts on Melbourne cup day versus your own business productivity?
And what about working Mums and parents struggling to look after children and match social expectations? In a period when the number of companies going broke to September was apparently up 12% it’s amazing that more aren't at work!
At Taurus, I've given up the fight. Our phones stop ringing - we can't get through to anyone on a landline - so we embrace the Melbourne Cup.
The city, for us, appears to shut down for the afternoon. It may not be a public holiday in Sydney, but we've made the decision to treat it as a deserved half day and put a smile on staff faces.
