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May saw Macau welcome a big, new player to town: Galaxy Macau
The Galaxy Macau mega resort – the third of its kind in Cotai after the Venetian Macao and City of Dreams – is aiming to boost its parent company’s bottom line, while opening new markets for the gaming operator.
Galaxy Entertainment Group, who owns and manages the property, expects the resort to be the only new integrated destination resort to open in Macau this year. Analysts agree, as there are increasing doubts as to whether Sands China will be able to launch the first phase of its parcels five and six in Cotai by the end of this year, as previously announced by chairman Sheldon Adelson.
“We are confident that it will become a key draw for all visitors,” Galaxy Entertainment Group vice-chairman, Francis Lui told Macau Business. “And while we would prefer not to speculate on future results, we believe our successful track record at StarWorld indicates we will also be able to make a success out of Galaxy Macau.”
Mr Lui doesn’t disclose targets on the expected market share growth to be driven by the new property. “We are less concerned about market share than we are attracting a new and different kind of customer to Macau,” he says.
Overall, analysts are estimating Galaxy’s new property will further propel Macau’s casino revenue upward to record highs. They do not expect it will impact negatively the other gaming operators, other than in the short-term.
“We believe an increasing number of clientele will come to Galaxy Macau from the mainland, Hong Kong and Taiwan as well as Japan, Korea, and Southeast Asia, and that the mix will include traditional gaming enthusiasts as well as a newer group of weekend holiday-goers who are interested in exploring the true resort, dining, entertainment and leisure characteristics of the property,” says Mr Lui.
“Because of what Galaxy Macau is adding to the market, we believe the pie will only grow larger.”
Ted Chan Ying Tat, the chief operating officer for gaming at Melco Crown Entertainment, told reporters he doesn’t expect Galaxy to hit on the bottom line at the City of Dreams. According to Mr Chan, it is quite the opposite: the new property will help to add more traffic to Cotai, benefiting Melco Crown.
