New $2 billion casino opens in Macau
Hong Kong property and construction tycoon Lui Che Woo has opened the doors to his new $2 billion casino in Macau.
Lui, Chairman of Macau casino operator Galaxy Entertainment, experienced a two-year delay in opening the property, as a result of the global financial crisis. Macau is the world's largest gaming market, with revenues surpassing Las Vegas four fold.
Designed as an Asian-style palace, the 550,000 metre2 property is the third casino to open on the developing Cotai strip, Macau's version of the Vegas strip and which authorities hope will transform Macau from a pure gaming destination into a tourist and leisure destination.
Galaxy Macau's gold embossed turrets glow against the Macau skyline, magnifying the glitz of billionaire Sheldon Adelson's Venetian property and Melco Crown Entertainment's City of Dreams, all situated within walking distance of each other.
Macau, formerly a hotbed for piracy and smuggling, has been trying to upgrade its image with Michelin starred dining options and vast luxury retail outlets, all in a bid to woo China's rising middle class."
While around 70% of gaming revenue is still accrued from the high-rolling VIP sector, Galaxy Macau is allocating two-thirds of its 450 gaming tables to the mass market, confident of delivering returns in the mid to high teens to investors.
Galaxy's new 2,200 room property, which incorporates international hotel brands Banyan Tree and Japan's Okura, is hoping to creating a "super industry" of gaming and tourism in the former Portuguese colony, according to Galaxy Vice Chairman Francis Lui, a committee member of the Chinese People's Political Consultative Conference (CPPCC).
Francis Lui explains "if you merge Phuket in Thailand together with Macau it would create a new dimensional kind of market. The example of Galaxy Macau is to bring this tropical mood to Macau."
With its 350 ton white sand beach, simulated wave pool and southeast Asian resort-style spa facilities, Galaxy is hoping to create a niche market in the former Portuguese colony, emphasizing the health and well being of its visitors.
Galaxy Macau is following in the footsteps of rivals Melco Crown and Sands China in targeting China's mass market, betting that improving infrastructure and rising consumption will help propel demand.
Galaxy's new project only covers around a third of its available land space on the Cotai strip. It plans to develop the rest of its land bank over the next seven to eight years.
Wynn Macau, casino mogul Steve Wynn's Macau unit of Wynn Resorts, MGM Resorts International, and SJM Holdings are the three other licensed operators yet to start construction on the strip.
As Galaxy Chief Financial Officer Robert Drake adds "we could build three more of these if we wanted to."
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