Galaxy Entertainment Group Ltd. (00027.HK) is pressing ahead with a HK$100 billion (US$12.9 billion) investment in Macau despite its faltering gaming sector, the Hong Kong Economic Journal reported Thursday.
The casino operator said it is committed to helping turn Macau into a world-class tourist destination, the report said, citing chairman Lui Che-woo.
On Wednesday, the company opened its newest casino resorts — Macau Galaxy II and Macau Broadway.
Galaxy has invested more than HK$43 billion of the planned HK$100 billion spending in Cotai, Macau’s casino hub.
However, Lui hinted at a slower investment pace as headwinds batter the gaming industry and the wider economy.
“Every sector has to stop for awhile at a certain stage in its development,” Lui said.
Macau Galaxy Phase II attracted more than 3,000 visitors on its debut.
Deputy chairman Lui Yiu-tung said future projects will feature more non-gaming elements, depending on the performance of the new casinos.
Macau Galaxy II has more than 95 percent of its amenities reserved for non-casino activities, catering and retailing.
It may take two to three years for a new business model to emerge, Lui Yiu-tung said.
He expects double-digit growth in non-gaming revenue.
Translation by Vey Wong
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