Macau is undergoing a transformation in its tourism industry, moving away from a heavy reliance on gaming as the government seeks to establish the region as a global destination. Amid this shift, the six gaming concessionaires are also refocusing their strategies, though many still prioritize high-end gaming, often at the expense of catering to other types of visitors.
Francis Lui, chairman of Galaxy Entertainment Group, advocates for a "parallel strategy" that aims to develop both premium gaming and diverse non-gaming attractions simultaneously. Lui insists on implementing this approach, staying aligned with the goals of Macau's authorities.
In an exclusive interview with iGaming Business, Lui stated, "The vision in Macau is that it has to be sustainable, and you don’t want to bet on just pure gaming." He recognizes Macau's unique position as the only place in China with legal casinos and notes, "Macau’s mainland market ‘under-penetration is humongous.’" In exchange for the privilege to operate gaming venues, Lui emphasizes the importance of understanding and supporting governmental objectives.
As a prominent figure in Macau’s casino sector, Lui interprets governmental guidance as a call to evolve, saying, "You can continue to evolve and earn your money, but at the same time, there’s some social responsibility, economic values that you have to create."
The third phase of Galaxy Macau is seen by Lui as a manifestation of the government’s vision for Macau. He remarked, "We sort of sensed it a few years back, and then we decided that Phase 3 is going to match that vision."
To that end, Galaxy has made significant investments in state-of-the-art amenities, including the Galaxy International Convention Center and Galaxy Arena, which opened in 2023. These facilities feature 10,000 square meters (108,000 square feet) of pillar-free space and the Galaxy Arena can accommodate 16,000 guests, making it the largest indoor venue in Macau. Additionally, the complex includes a 715-key Andaz hotel.
Lui noted that they built two luxury hotels, Raffles and Capella, anticipating changes in customer preferences toward more multi-experiential offerings. He explained, "We see diversification," as the market shifts from VIP clients to a broader premium mass audience.
Each hotel features premium gaming areas with private salons and a range of exclusive non-gaming amenities such as upscale dining, bowling, golf simulators, spas, and cinemas. Lui described the transition from a VIP-centric model to a sustainable business model as essential for future growth, stating that despite this shift, profits remain stable compared to 2019.
Following the completion of Phase 3, Galaxy Macau offers a wide array of entertainment options, emphasizing their commitment to combining high-quality gaming with non-gaming attractions. Lui highlighted that the resort has a total of 5,000 guest rooms across nine brands, along with hundreds of gaming tables and slot machines.
Looking ahead, Galaxy’s Phase 4 is set to open next year, which will include additional luxury hotel brands, a 5,000-seat theater, expanded retail and dining options, and further gaming facilities. Lui estimates that total investment for Galaxy Macau will reach HK$100 billion (US$12.75 billion).
In delineating the rationale for four development phases, Lui explained that this structure allows them to adapt to evolving consumer preferences. For Phase 4, a readjustment has led to a revised plan focusing on 1,500 higher-end hotel rooms, instead of the originally planned 2,000 to 2,500, which might conflict with governmental tourism growth goals.
Lui also mentioned the potential for development on Hengqin, an island near Macau with lower land and operational costs. He expressed optimism about connecting Hengqin and Macau more efficiently to enhance tourism by allowing easier transit for visitors.
In terms of attraction development, Lui has studied successful projects around the world and believes Macau needs to embrace modern entertainment technologies to stay competitive. He has suggested that the gaming concessionaires explore collaborative investments in new attractions, leveraging their collective resources committed to non-gaming initiatives.
Beyond Macau, Lui sees further opportunities for Galaxy, including enhancements to StarWorld and potential developments in Japan and Thailand as well as the United Arab Emirates, where he believes Galaxy could excel in creating integrated resorts.
