One of the big events that we missed while Paul and I were in Singapore was the Melbourne Cup. I found this article by Tim Harcourt, chief economist of the Australian Trade Commission and the author of Beyond Our Shores on today's Age Online site, so I've reprinted it here. It gives a different view of something that goes beyond my tiny one-eyed view of Singapore being souless because of its chase of the mighty dollar.
WE SAW history in this year's Melbourne Cup. Two Japanese horses — Delta Blues and Pop Rock — came in first and second. They were carefully prepared by a Japanese trainer and the winner was ridden by a Japanese jockey. An Australian rode the runner-up.
Should we true-blue Aussies be worried about foreign interest in an iconic event such as the Melbourne Cup? Not at all. After all, to succeed in racing, like any successful industry, we need imports as well as exports. That's the first lesson of international economics. No country can just export to foreigners and buy nothing in return. Not only is it unrealistic, but it is also against our own economic interests.
Of course, the Melbourne Cup is a major event in international trade as well. When you mention trade to most people it conjures up images of coal, iron ore, wheat and wool rather than horses. Trade stories usually deal with multilateral negotiations in the World Trade Organisation in places such as Geneva, Doha and Cancun. But the mounting yards at Flemington are indeed a trade venue, and the bookies are great trade negotiators in their own right. In fact the Melbourne Cup is an international trade event in more ways than one.
First of all, there's the race. The Melbourne Cup is a reflection of globalisation in many ways. We have foreign horses and foreign trainers trying to win the multimillion-dollar prize. And there are also foreign punters. The Melbourne Cup is one of the big events on the international racing calendar and a major scalp for any racing syndicate — whether they be Australian or foreign.
Along with the success of the Japanese this year, Irish trainers and horses are always in the running, and in more recent years the leaders of horse-mad Dubai in the United Arab Emirates have taken a big interest in the events at Flemington. After all, it is called the Emirates Melbourne Cup, following the sponsorship by the UAE national carrier.
And is this a bad thing? After all, we've often had foreign horses winning the cup, so why not foreign trainers? Think of the many great New Zealand horses — from Phar Lap to Kiwi — in the cup's history, and remember Vintage Crop, Ireland's first winner in 1993. Foreign entrants also lift standards, enhance competition and skills and, ultimately, the amount of prizemoney on offer.
The global nature of the Melbourne Cup has helped develop Australia's own racing export industry. According to Austrade's racing industry specialist, Geraldine Doumany, the Australian horse industry contributes "around $8 billion a year" in economic benefits in terms of feed, floats, live horse exports and tourism. "Much of the industry is based around the thoroughbred racing sector, with big sales around events such as the Magic Millions on the Gold Coast, which grossed almost $80 million this year," she said.
"Most of the buyers are from Asia — mainly Japan, Korea, Hong Kong and the Philippines — but there are an increasing number of UAE based buyers, particularly in Queensland."
Racing-related products are also a big part of our export industry. For instance, one South Australian company, Steriline Racing, is a leading exporter of racing technology. Steriline specialises in the design, manufacture and installation of starting gates and running rails. Steriline has won contracts to install 14-stall starting gates in France and Germany.
Steriline's managing director, John Fargher, likens export success to the 3200-metre race that has become the Melbourne Cup. "It requires stamina and persistence and a good knowledge of the form," he said.
Secondly, there's that other great Australian sport — fashion. The spring racing carnival is also a major part of the fashion industry's year.
From Jean Shrimpton's mini in the 1960s to Megan Gale's appearances this year, fashion has always created as many headlines as hemlines at the Melbourne Cup. It is a great way to showcase Australia's fashion export talent, which is doing wonders overseas. For example, at the recent Celebrate Australia Australian Style Week in Shanghai, many prominent labels such as Ess Hoshika, and Fashionassassin performed as well as some up-and-comers, including Kanchai of Mosman and the Newcastle-based trio of sisters, High Tea with Mrs Woo.
Finally, there is business networking that always occurs in hospitality tents and maybe later in the car park. Hospitality is the name of the game and Australia's fine food and beverage exporters use the Melbourne Cup to raise awareness of their brands.
In addition, following on from its great success at the Melbourne Commonwealth Games, the Rugby World Cup and the Sydney Olympics, Austrade's Business Club Australia was also there to facilitate international trade and investment.
The BCA has generated about $1.7 billion in exports and investments through its 8500 members (38 per cent of whom are overseas).
The BCA is working closely with the Victoria Racing Club to promote international business through the Melbourne Cup and it is already paying dividends.
So congratulations Delta Blues and arigato (thank you) Japan, you have helped raise the standards of what could well be regarded as the greatest horse race on the planet — the Melbourne Cup.
Should we true-blue Aussies be worried about foreign interest in an iconic event such as the Melbourne Cup? Not at all. After all, to succeed in racing, like any successful industry, we need imports as well as exports. That's the first lesson of international economics. No country can just export to foreigners and buy nothing in return. Not only is it unrealistic, but it is also against our own economic interests.
Of course, the Melbourne Cup is a major event in international trade as well. When you mention trade to most people it conjures up images of coal, iron ore, wheat and wool rather than horses. Trade stories usually deal with multilateral negotiations in the World Trade Organisation in places such as Geneva, Doha and Cancun. But the mounting yards at Flemington are indeed a trade venue, and the bookies are great trade negotiators in their own right. In fact the Melbourne Cup is an international trade event in more ways than one.
First of all, there's the race. The Melbourne Cup is a reflection of globalisation in many ways. We have foreign horses and foreign trainers trying to win the multimillion-dollar prize. And there are also foreign punters. The Melbourne Cup is one of the big events on the international racing calendar and a major scalp for any racing syndicate — whether they be Australian or foreign.
Along with the success of the Japanese this year, Irish trainers and horses are always in the running, and in more recent years the leaders of horse-mad Dubai in the United Arab Emirates have taken a big interest in the events at Flemington. After all, it is called the Emirates Melbourne Cup, following the sponsorship by the UAE national carrier.
And is this a bad thing? After all, we've often had foreign horses winning the cup, so why not foreign trainers? Think of the many great New Zealand horses — from Phar Lap to Kiwi — in the cup's history, and remember Vintage Crop, Ireland's first winner in 1993. Foreign entrants also lift standards, enhance competition and skills and, ultimately, the amount of prizemoney on offer.
The global nature of the Melbourne Cup has helped develop Australia's own racing export industry. According to Austrade's racing industry specialist, Geraldine Doumany, the Australian horse industry contributes "around $8 billion a year" in economic benefits in terms of feed, floats, live horse exports and tourism. "Much of the industry is based around the thoroughbred racing sector, with big sales around events such as the Magic Millions on the Gold Coast, which grossed almost $80 million this year," she said.
"Most of the buyers are from Asia — mainly Japan, Korea, Hong Kong and the Philippines — but there are an increasing number of UAE based buyers, particularly in Queensland."
Racing-related products are also a big part of our export industry. For instance, one South Australian company, Steriline Racing, is a leading exporter of racing technology. Steriline specialises in the design, manufacture and installation of starting gates and running rails. Steriline has won contracts to install 14-stall starting gates in France and Germany.
Steriline's managing director, John Fargher, likens export success to the 3200-metre race that has become the Melbourne Cup. "It requires stamina and persistence and a good knowledge of the form," he said.
Secondly, there's that other great Australian sport — fashion. The spring racing carnival is also a major part of the fashion industry's year.
From Jean Shrimpton's mini in the 1960s to Megan Gale's appearances this year, fashion has always created as many headlines as hemlines at the Melbourne Cup. It is a great way to showcase Australia's fashion export talent, which is doing wonders overseas. For example, at the recent Celebrate Australia Australian Style Week in Shanghai, many prominent labels such as Ess Hoshika, and Fashionassassin performed as well as some up-and-comers, including Kanchai of Mosman and the Newcastle-based trio of sisters, High Tea with Mrs Woo.
Finally, there is business networking that always occurs in hospitality tents and maybe later in the car park. Hospitality is the name of the game and Australia's fine food and beverage exporters use the Melbourne Cup to raise awareness of their brands.
In addition, following on from its great success at the Melbourne Commonwealth Games, the Rugby World Cup and the Sydney Olympics, Austrade's Business Club Australia was also there to facilitate international trade and investment.
The BCA has generated about $1.7 billion in exports and investments through its 8500 members (38 per cent of whom are overseas).
The BCA is working closely with the Victoria Racing Club to promote international business through the Melbourne Cup and it is already paying dividends.
So congratulations Delta Blues and arigato (thank you) Japan, you have helped raise the standards of what could well be regarded as the greatest horse race on the planet — the Melbourne Cup.
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