Galaxy Entertainment Group says it’s committed to a wide range of non-gaming offerings in Macau.
Macau.- Galaxy Entertainment Group chief operating officer Kevin Kelley says the operator will host 50 major concerts and 250 MICE (meetings, incentives, conferences, and exhibitions) events in 2024.
Speaking at the MGS Entertainment Show & Summit, Kelley said: “The Macau SAR Government has the right idea with this objective to evolve Macau from a heavily gaming-centric tourism model to becoming a highly diversified world centre for entertainment and tourism.
“As we move forward into the future, we have to embrace the reality that the success of our past does not necessarily guarantee the success of our future.”
According to Macau Business, Kelley emphasised the need for operators, manufacturers and the government to align efforts. During his speech, he predicted a rise in the popularity of slot machines and electronic table games due to a market transition in gaming jurisdictions worldwide and citing daily observations on Galaxy’s gaming floor.
The MGS Entertainment Show & Summit’s theme was “The Asian Pioneer Returns.” Organised by the Macau Gaming Equipment Manufacturers Association (MGEMA), it’s hosting approximately 35 exhibitors across a 3,000-square-meter exhibition floor. The two-day event features a conference program addressing post-Covid challenges, industry innovations and regional opportunities.
GEG posted net revenue of HK$9.7bn (US$1.24bn) for the year’s third quarter. The figure was up by 11.4 per cent sequentially and 374.4 per cent from the prior-year period. EBITDA was HK$$2.8bn, a rise of 576 per cent when compared to last year and 12 per cent in quarter-on-quarter terms. Gross gaming revenue (GGR) was HK$8.75bn (US$1.12m), up 853 per cent year-on-year and 14.2 quarter-on-quarter.
Macau’s diversification plans
The government of Macau’s economic diversification plan for 2024 to 2028 aims to bolster the economy by expanding non-gaming sectors and diminishing the historical dependence on casinos for employment and tax revenues. The “1+4 model” focuses on four industries: healthcare, finance, technology and events in the fields of sports, culture and business.
The government expects the non-gaming sector to contribute approximately 60 per cent of gross domestic product (GDP) by 2028. In 2019, the gaming industry represented just over 50 per cent of Macao’s GDP.
The six Macau casino operators have collectively pledged to invest a minimum of MOP108.7bn (US$13.48bn) in non-gaming initiatives and explore overseas markets. The companies will be required to increase their non-gaming investment by around 20 per cent of their initial pledge if Macau’s annual gross gaming revenue reaches MOP180bn (US$22.45bn) by 2027.