Francis Lui warns hotel shortage threatens Macau’s global tourism edge

The Galaxy Entertainment Group (GEG) chairman, Francis Lui, has highlighted that addressing accommodation supply issues is vital for enhancing Macau’s competitiveness as a non-gaming destination, impacting its standing in both regional and global markets.

As one of the keynote speakers at the G2E Asia Conference and Asian IR Expo, Lui presented six key points for Macau’s future development.

He noted that recent investments have significantly boosted the growth of non-gaming elements, with the non-gaming sector accounting for over 60% of Macau’s gross domestic product (GDP) in 2023, achieving remarkable results in promoting non-gaming attractions.

He emphasized that since the conclusion of the Covid-19 pandemic, Macau’s visitor numbers have surged back to approximately 35 million annually. During mainland China’s recent May Day Golden Week holiday, the city welcomed over 850,000 visitors, leading to record hotel occupancy rates and a remarkable 33% year-over-year increase.

“Although representing a 33% yearly increase, Macau is gradually shifting towards a more mass-market model, which influences our decision to invest in and develop world-class hotels, dining, entertainment, and family-friendly resort facilities. […] As Macau shifts towards a more mass and event-focused model, the question of hotel rooms must also be addressed,” Lui stated.

Referencing Chief Executive Sam Hou Fai’s assertion that, amid rising global uncertainty and intensifying competition among cities – particularly in tourism and gaming – economic transformation is urgent, Lui highlighted the need for Macau to address its accommodation supply issues promptly.

“Both in Macau and throughout the Guangdong-Macau In-depth Cooperation Zone in Hengqin, integration will bring change. By comparison, consider that there are over 155,000 hotel rooms supporting 42 million annual visitors elsewhere. This is over three times that of Macau. Nearly 44,000 rooms supported 35 million visitors last year. Given that demand for accommodation will continue to outstrip supply in the years ahead,” said Lui, who believes that with the growing number of visitor arrivals, demand for hotel accommodation will continue to increase.

“We must also come together as an industry to protect Macau’s premium positioning –  not competing on price, but on quality and customer experience,” he urged the sector.

In his remarks, Lui emphasized the critical significance of economic diversification for the long-term sustainable development of the industry and Macau’s future contributions to the overall economy of the Guangdong-Hong Kong-Macau Greater Bay Area.

Highlighting the group’s initiatives, particularly the city’s “Tourism+” appeal aimed at attracting a wider range of international visitors, Lui reaffirmed their commitment to promoting non-gaming development. He pledged to enhance the luxury hospitality collection with Capella at Galaxy Macau, which has been recognized as the best hotel brand in the world for two consecutive years.

“Accolades like this not only elevate our resort brand but also enhance Macau’s global positioning. With this strategy in mind, we will introduce additional global hospitality and lifestyle brands to our resort in the future,” said Lui

Looking ahead, according to him, the group’s Phase 4 development and the planned high-tech, immersive theme park will deliver a next-generation resort experience that is engaging, enjoyable, and sustainable for guests.