Galaxy Entertainment to venture into theme parks

Galaxy Entertainment Group Ltd chairman, Lui Che-Woo says he will be venturing into family friendly theme parks as part of the next two phases of the HK$86 billion (US$11 billion) Galaxy Macau project, according to an interview with Bloomberg.

Lui said the theme park will be “something special and high-tech” similar to the movie “Avatar.” The theme park will be smaller but more unique than larger theme parks, Lui added.

“Nowadays you already see that all these theme parks all have different special ideas,” said Lui, “So we’re thinking of how to compete against them.”

The decline of VIP players in Macau and the ramp up of the mass market means that operators need to come up with new ways to attract tourists.

“Theme parks are a great idea and Macau is desperate for more non-gaming attractions,” said CLSA Ltd. analyst Aaron Fischer as quoted by Bloomberg. “These investments are in line with government demands so this will further strengthen relations and reduce the risk of the license not being renewed.”

Galaxy Macau Phase Two and the Broadway Macau projects started operations in May, 2015. Construction of the third and fourth phases of Galaxy Macau are expected to start this year, according to deputy chairman Francis Lui, in a briefing last month.

Union Gaming analysts are optimistic of the theme park development, based on their research on theme park visitors in China. “The development of a theme park will, in our view, create a cluster effect on the west side of Cotai that should result in increased mass market wallet share for these properties,” said analysts.