Local outlet Macau Business Daily is reporting that Francis Lui Yiu Tung, vice chair of Galaxy Entertainment Group, has told Chinese language newspaper Macao Daily in an interview that the lingering downturn in the local gaming industry will not slow down plans for a HK$40 billion (US$5.16 billion) to HK$50 billion expansion of their Macau casino and leisure properties. Galaxy opened Phase II, featuring Broadway, on May 27, 2015 in the midst of shrinking revenues around them. The group was allocated just 150 gaming tables to complement 250 suites at their new Ritz Carlton and additional 1,000 rooms at the upscale JW Marriott hotel.
Broadway Macau added 320 five-star guestrooms and suites. The properties were linked by an air-conditioned bridge. Banyan Tree Macau, Hotel Okura Macau and Galaxy Macau hotels were previously opened in Phase I. Galaxy Phase I & II cover approximately 1,000,000 sqm.
Galaxy Phase III is expected to begin construction before the end of 2016 with Phase IV commencing next year.
While no details for the property expansion were announced, the vice chairman did say that 97 percent of the developments would be non-gaming, targeting family guests and MICE (meetings, incentives, conferences and events/exhibitions). Mr. Lui also reportedly told the outlet that table allocation would not be a critical element of the development, and his company is looking at what potential customers may want five years out.
Mr. Lui said that the as yet uncompleted Hong Kong-Zhuhai-Macau Bridge will increase tourism sources and help the local MICE industry, which most analysts say is an important element in Macau’s non-gaming economy. Non-gaming revenues for Galaxy have increased 60 percent year on year according to the report.