Inside Asian Gaming

INSIDE ASIAN GAMING | May 2012 20 top wave pool with additional leisure amenities and lush tropical gardens; • Expanding gaming capacity by up to 500 tables and more than 1,000 slots; • More than 45 new food and beverage outlets for a grand total of more than 100. GEG currently has about 500 workers on site carrying out piling work. According to Union Gaming Research Macau, “Given the head start as the first of what should be six new Cotai IRs (one for each of the concessionaires), the availability of labor should be less of an issue for Galaxy as it might be for other operators.” Mr Govertsen also believes “the normal build cycle of approximately three years will give Galaxy Entertainment that much more time to hone its mass-market operational skill as it readies a significant amount of mass-market supply in the form of Phase II.” At the Phase 2 announcement, GEG’s chairman, Dr Lui Che-woo, commented: “We have decided to accelerate the rollout of Phase 2 based on the success of Phase 1 and to align the opening of Phase 2 with the completion of major infrastructure developments in the greater Macau region in mid-2015. These developments will serve as a catalyst for future growth and diversification of Macau’s tourism and leisure market.” Dr Lui added: “Galaxy Macau will benefit from increased visitation to Macau as major new infrastructure developments in China improve its accessibility, including the expansion of the border gates in Macau and Zhuhai, a high-speed railway network, completion of the ferry terminal in Taipa, a super highway between Guangzhou and Zhuhai and the construction of the Hong Kong- Zhuhai-Macau Bridge, among others.” GEG plans to fund Phase 2 through a combinationof existingcash, cashgenerated from operations and debt, and does not intend to issue new equity. What next for Wynn? Following news of Wynn Macau’s Cotai approval, Stephen A. Wynn, chairman and CEO of Wynn Resorts, gushed: “The official transfer of real estate in Cotai makes possible the commencement of the construction phase of what will be the single most important project in the history of Wynn Resorts.” Mr Wynn continued: “We are mindful of our responsibilities to the citizens and government of Macau and we will remain consistent to the history of our organization by bringing to life a hotel resort in Cotai that will mark a new standard of elegance in the world.” AlthoughWynn Macau’s land concession contract has been given the go-ahead, it still has several government applications pending, such as for the design of the property. Mr Govertsen suggests such approvals are a way to stagger development to ensure there is a reasonable gap between major Cotai property openings, noting, Dr Lui Che-woo, chairman of Galaxy Entertainment Group “We have decided to accelerate the rollout of Phase 2 based on the success of Phase 1 and to align the opening of Phase 2 with the completion of major infrastructure developments in the greater Macau region in mid-2015. These developments will serve as a catalyst for future growth and diversification of Macau’s tourism and leisure market.” “We are mindful of our responsibilities to the citizens and government of Macau and we will remain consistent to the history of our organization by bringing to life a hotel resort in Cotai that will mark a new standard of elegance in the world.” SteveWynn Cotai Double happiness—rendering of Galaxy Macau Phase 2