Macau has weathered the worst of its economic woes and is now on the bounce-back – according to one of the city’s most prominent gaming stakeholders.
[dropcap]G[/dropcap]alaxy Entertainment owner Lui Chee-Woo made the remarks to assembled press following the release of encouraging interim financial results for the company.
“Macau’s gaming sector has hit rock bottom and a rebound is already on the horizon,” he said.
Whilst Galaxy’s net revenue remained relatively static on a like-for-like basis, the company enjoyed a 13 per cent rise in its adjusted earnings up to June 30 – to HK$4.7bn (E540m). These gains were almost entirely the result of a significant (22 per cent) upturn in mass-market play.
“The first half of 2016 was encouraging for Macau and we continued to see gradual signs of stabilisation, as it diversifies, and the shift towards mass segment continues,” stated a company spokesperson. “While we do acknowledge there might be increased competition with the opening of additional properties in Cotai, we are hopeful that the new properties will also be a catalyst for increased visitation and increased length of visitor stay.”
The first half of 2016 was encouraging for Macau and we continued to see gradual signs of stabilisation, as it diversifies, and the shift towards mass segment continues
Galaxy Entertainment already relies more heavily on its various entertainment and hospitality assets than many of its significant competitors in the SAR – and as such has been tipped by many industry observers as being well-placed to attract both mass and non-gaming visitation.
According to Lui’s eldest son Lui Yiu-tung, the forthcoming phase three and four of the company’s Galaxy Macau resort will expand upon this model yet further: with 95 per cent of floor space dedicated to non-gaming activity.