In the wake of the Covid restrictions and the decline of the pre-pandemic junket system, Macau is facing a unique challenge in its tourism landscape. The local authorities aim to diversify the region, striving to establish itself as a global destination less reliant on gaming. Galaxy Entertainment Group's chairman, Francis Lui, believes that a dual approach is necessary to accommodate both high-end gaming and a broader array of attractions.
During an exclusive conversation, Lui articulated his vision for a "parallel strategy," where premium gaming amenities sit alongside non-gaming attractions, developed simultaneously but on separate paths. He stated, "The vision in Macau is that it has to be sustainable, and you don’t want to bet on just pure gaming." Acknowledging Macau's special status as China’s only jurisdiction with legal casinos, he pointed to the massive untapped market potential on the mainland.
Lui interprets the government’s messages as an encouragement to evolve while demonstrating social responsibility. “You can continue to evolve and earn your money, but at the same time, there are some social responsibility and economic values that you have to create,” he said.
Galaxy Macau's Phase 3 is a key element in this vision. Lui asserted that it embodies the government's aspirations for the region. The completion of the Galaxy International Convention Center and Galaxy Arena, launched in 2023, features 10,000 square meters of flexible event space, the largest indoor venue in Macau, seating up to 16,000 people, amidst state-of-the-art technology. Additionally, Lui has emphasized the need to elevate Macau's competitiveness against other regional hubs like Hong Kong and Singapore by offering superior facilities.
To cater to the shifting expectations of high-end customers, Galaxy has introduced two luxury hotels, Raffles and Capella, both designed to meet the demand for diverse and premium experiences. Each hotel includes exclusive gaming areas, upscale dining options, and leisure facilities, like a bowling alley and golf simulators, catering to an evolving clientele.
"It’s a very different business model that we’re evolving into," Lui explained. Amid market fluctuations, he reported that Galaxy has managed to maintain stable profitability while aligning with the government's vision.
With these developments, Galaxy Macau now encompasses a range of accommodations, dining options, and entertainment choices, routinely ranking among the top in gaming revenue in the region. Last year, Galaxy’s group EBITDA surpassed US$1.8 billion, a slight drop from US$2.1 billion in 2019, reflecting the ongoing adjustments in the market.
Looking ahead, Phase 4 is on the horizon with plans to introduce even more luxury hotel brands and a new theater, along with additional retail spaces and gaming facilities, signaling a planned capital investment of HK$100 billion (US$12.75 billion). "From day one, we decided we wanted to build out our piece of land in four phases [because] we felt the clientele was evolving very fast," Lui shared.
He also mentioned strategic adaptability, revealing that the number of planned hotel rooms for Phase 4 was revised downward from 2,500 to just 1,500 based on market trends toward more exclusive options. Despite this pivot, Lui expressed confidence in catering to the premium sector while also addressing the need for more affordable accommodations, linking Macau’s long-term tourism goals to a larger vision.
Further complicating matters is the potential for development across the border in Hengqin, a special economic zone. Lui highlighted that although Galaxy no longer holds land options there for a seaside resort, he remains optimistic about the area’s potential. Improved connectivity between Hengqin and Macau could lead to increased visitor numbers and opportunities.
He emphasized the importance of creating attractions that encourage visitors to stay longer in Macau rather than returning to Zhuhai at night. Lui’s hefty investments reflect his commitment to evolving entertainment facilities that resonate with modern expectations, potentially integrating new technologies seen in global hotspots like Las Vegas.
Lui is actively considering various future developments, including the renovation of StarWorld for mass market focus, and the transformation of Broadway into a more lucrative asset, dependent on market conditions. Beyond Macau's borders, he noted interest in potential projects in Japan and Thailand, while also viewing the UAE as a promising site for integrated resorts.
After taking on the role of chairman in December 2024 following the passing of his father, Lui has refocused on strategic decisions amid a shifting global landscape. With family members involved in the company, he believes in a balance between ownership and operational leadership.
His children have gradually taken on responsibilities without being forced into roles within the family business. "I’ve always encouraged them to choose their own path," he noted, highlighting a desire for them to develop a sense of ownership and commitment.
As he continues to shape the future of Galaxy and its contribution to Macau, Lui is driven by a profound belief in the region’s potential. His passion for the industry and the opportunities ahead remains evident, reflecting an enduring dedication to the evolution of Galaxy and the city itself.
