Galaxy Entertainment Is Losing $4.02 Million Per Day
The continued border restrictions between Macau and Guangdong is costing Galaxy Entertainment Group astronomical sums of money. Lui Che Woo, the Chairman of Galaxy, wants the restrictions lifted as soon as possible as losses mount up.
Galaxy is considered the healthiest of the six Macau gaming concessionaires because if its liquidity. A report in April revealed Galaxy has HK$43.46 billion cash ($8.19 billion) in cash reserves. This is the gambling giant enough breathing space for approximately 40-months. The company is mega-rich but it’s currently spending $4.02 million a day with nothing coming in.
Lui spoke to the Hong Kong media shortly after Galaxy’s annual general meeting.
“The suspension of casinos surely impacted our business greatly. It’s hard to calculate our loss during the pandemic, but we must follow and respect the government policies in preventing the spread.”
The company believed an easing of border restrictions would happen on June 7. An outbreak of COVID-19 in Hong Kong put paid to those plans, however. A so-called “travel bubble” was expected to allow travel between Macau and Guangdong. This route is extremely important because it travel to Macau from mainland china.
Millions of visitors travel to Galaxy via high-speed boats, spending hundreds of millions of dollars. The late Stanley Ho built the very harbour that Lui is hopeful of reopening soon.
Galaxy Could Start Seeing Customers Soon
The border restrictions Lui wants relaxing look likely to happen before June ends. Social Affairs and Culture’s Elsie Ao Leong U announced Macau residents can apply for a special pass allowing them to travel to Zhuhai without a medical examination.
Only residents with business or practical travel needs can apply for these passes. Medical tests taken two days before the intended travel need to come back negative for the exemption. People who receive an exemption can travel back and forth for a week without further testing.
Macau’s government is also launching a shuttle service to and from Hong Kong International Airport. This service intends to bring stranded locals back home. These residents go into quarantine for a fortnight before being allowed to move freely around Macau.
Efforts for a similar system between Macau and Guangdong are underway. Galaxy would see customers return to its massive casino almost immediately.
Galaxy is attempting to control its spiralling costs while restrictions are in place. Lui’s son and Vice Chairman of Galaxy, Francis Lui said Galaxy is doing everything it can to control costs.
That may be the case, but it’s still ploughing ahead with Phase 3 and 4 of the Galaxy Macau project.
Construction of Phase 3 and 4 Back Underway
Problems have plagued Phase 3 of Galaxy Macau since construction began. It has hit several delays and seen construction costs increase massively.
Disaster struck in March when scaffolding collapsed at the project. The accident resulted in the sad deaths of three construction employees. Four other construction workers suffered unknown injuries in the accident.
A spokesperson for Galaxy issued a statement on behalf of the company.
“Galaxy Entertainment would like to express our deepest regrets over the accident. We extend our most heartfelt sympathies to the workers and their family members. After the incident, Galaxy Entertainment has taken all necessary actions and fully cooperated with the authorities to carry out rescue work and investigation.”
“Galaxy Entertainment has tasked the contractor to conduct a thorough review of all safety measures on the construction site and ensure all related rules and regulations are strictly abided by all relevant parties. Since the case is under police investigation no further information can be provided at this stage.”
It wasn’t the first accident on the huge project. Four construction workers died in an accident in 2015.