Inside Asian Gaming

December 2011 | INSIDE ASIAN GAMING 11 Cover Story with all of the people in this company. I’ve enjoyed it an awful lot. “And you can see when Francis and the Chairman walk through the property, there are great smiles and waves and the feeling that we’re in it together. We’re truly a team, we’re truly a family.” GEG’s management is also mindful of maintaining good relationships with its business partners. Junket operators spoken to by IAG are almost universal in their praise of GEG, which they claim treats them much more equitably, consistently and considerately than some of the other casino operators in Macau. The company also appears to be more politically sensitive and on better terms with government (both in Macau and the central government in Beijing) than some of its competitors. Mr Mecca believes Galaxy Macau is perfectly positioned to benefit from the central government’s twelfth five- year plan, announced in May this year, which calls for Macau’s development into a global tourism and leisure centre, in addition to the diversification of its gaming-dominated economy. He observes: “China will provide Macau’s main source of visitors—especially the rising middle class, who prefer a truly Asian product and experience, which is what Galaxy Macau offers. Furthermore, our partnership with Banyan Tree and Hotel Okura will help expand our customer base across North and Southeast Asia.” While the rising tide of Macau’s booming casino industry has been carrying all operators, if GEG continues playing to its strengths, it could well continue moving ahead of the pack, while also growing its higher-margin mass-market and premium direct businesses. Inside Asian Gaming questioned Mr Mecca about GEG’s recent performance and outlook, as well as his thoughts on the Macau market in general. IAG : Did you expect Galaxy Entertainment Group would jump up the Macau market share rankings as much as it has following the opening of Galaxy Macau? Michael Mecca : Our goal was to expand the market. We did not intend in any way to pinch market share from our competitors. Galaxy Macau was about growing the market for Macau; growing the market for Cotai. And I think as we talk to the other properties on Cotai, they experienced growth after Galaxy Macau opened. That was the intent—we wanted to provide another great reason to come to Macau, to come to Cotai. And we understood, again through the Chairman and Vice Chairman, the vision for Macau by the central government and the Macaugovernment,thatMacauwasdestined to become a true holiday destination for mainland China and for all of Asia. As we have always said, market share is not our top priority. We are primarily focused on enhancing our operational efficiency to drive profits and profit margins, and using our capital and resources effectively to maximise benefits for our stakeholders. In the meantime, we will continue to grow StarWorld. The performance of StarWorld validates our business strategy. The VIP-centric property has one of the largest rolling chip volumes in the VIP segment in Macau, and recently achieved its thirteenth consecutive quarter of record EBITDA [earnings before interest, taxes, depreciation, and amortisation]. What do you see as the biggest threat to the continued boom of Macau’s gaming revenue? Is infrastructure a major concern? Human resources and infrastructure are the biggest challenges Macau is currently facing. As the gaming industry grows, obviously the demand for labour also increases. It is still a challenge to find sufficient manpower to meet the demand, and there is a lack of experienced and skilled candidates to fill a wide range of positions. However, recognising this challenge, Local leadership—Deputy Chairman Francis Lui (left) and Chairman Dr Lui CheWoo (right) Michael Mecca