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IT DIDN’T QUITE WORK OUT THAT WAY. A partnership with an American operator fi zzled, so after running a couple of card clubs in other peo- ple’s , his family’s irm, Galaxy Entertainment Group, built one of ’s new glittering BY RUSSELL PEARLMAN in 2006. That and building two other incredibly successful casinos in Macau transformed Lui, 62, from the ambitious son of a wealthy con- struction magnate into one of the ’s richest men. In turn, Lui helped transform Macau—which over the past several hundred years has been, in turn, a waystation for refugees fl eeing the Mongols, a bustling Portuguese-run trading colony, a haven for CASINO BOSS early-20th-century gangsters and a neutral port in the storm of World War II—into its latest incarnation: the world’s biggest betting parlor. Gamblers drop more than FRANCIS LUI WON BIG $28 billion a year betting at Macau’s casinos. doesn’t even get one-quarter of that. But instead of sitting back and enjoying Macau’s current form, he’s at the forefront of trying to reinvent the area yet IN MACAU, BUT HIS again. He’s making a multibillion-dollar bet that Macau’s next reinvention won’t involve much at all. Over the next few years, Galaxy wants to add NEXT BET BARELY 10.7 million square feet of space to its existing , nearly doubling its size. It potentially will include a convention center, a concert venue with INVOLVES GAMBLING. several thousand seats, a Broadway-sized theater, thou- sands more rooms and hundreds more shops and dining options. But more than 95 percent of the space will be devoted to things other than gaming. “We want to move away from high rollers toward the mass market, international customers and, ultimately, the convention ot too long ago, Francis business,” Lui says. Lui, one of the world’s Lui envisions Macau will become a lot more like Las most powerful gambling Vegas, an all-ages destination where gambling revenues executives, knew about are overshadowed by the amount visitors spend on as much about running a dining, lodging and entertainment. Vegas-ifying Macau just might work, analysts say. New transportation casino as the average Las options between Macau, mainland and Hong Vegas tourist—which is to Kong can help turn Macau into a holiday resort and not say, nothing. Back in the necessarily just a gaming hub, says Richard Huang, who early 2000s, he did know follows the gaming industry for Nomura. that there was a huge The total investment for Galaxy Entertainment business opportunity in Macau, a densely Group on the peninsula section of Macau: at least packed island strip of land on the coast of $5.5 billion, a price tag that would make even those southwestern China, and the only place in high rollers look twice. The vision is not without risks. the country that allows casinos. But Lui just For one thing, Las Vegas’ fi rst attempt to become more family-friendly ended miserably. In the early 1990s, wanted to build and manage hotels there, as casino operators opened theme parks, exploding pirate his family had been doing, quite well, in Hong ships and roller coasters to attract kids and parents. Kong for years. Someone else could manage Only the roller coasters remain operating. the gambling business, he thought. “I never But Lui and his family have a history of placing bets dreamed of coming to Macau and getting a that pay off . His father arrived in Hong Kong penniless casino license,” he says. after World War II and built a construction-materials

44 PHOTOGRAPH BY ANTONIO LEONG

If we tried to copy Las Vegas and do exactly would be here for the long haul, that we should bring to have an average stay of 1.2 days, then 1.5 days, and now what they were doing then we’d always be No. 2. in our own brand, Galaxy, and our own culture. So we it’s two days. The overnighter spends three times more thought we should split. than the day-tripper. Macau should be built for the Asian market. The biggest challenge at the time was that we didn’t have any credibility with gaming. People doubted WHAT GIVES YOU CONFIDENCE THAT whether a local company from Hong Kong would be THIS DIVERSIFYING IS GOING TO WORK? successful. Plus, gaming is a small industry—people came from either Las Vegas or Atlantic City. To attract The position of Macau is written in the government’s a credible, reputable executive from either was a huge 13th fi ve-year plan [which came out in 2016] to be a challenge. We had to “world and leisure center.” The central govern- convince people that we ment is doing everything to make it happen. It has made were an up-and-coming repeated requests to us to diversify into non-gaming. company, that we had the It’s also constructing the Hong Kong-Zhuhai-Macau The biggest license and knew what we bridge. We envision that the mainland and Macau will be had to do. interconnected and borderless. Right now, Macau doesn’t challenge We also had to get our have a world-class airport, but once we fi nish the bridge is we didn’t hands dirty. I knew the we’ll have access to Hong Kong’s airport and can expand casino doesn’t run itself. outside of . have any We rented space in other credibility people’s hotels to learn HOW ARE YOU GOING TO FIND ALL how to run casinos. We THE TALENT TO WORK AT THESE NEW with worked those clubs for PLACES YOU’RE BUILDING? gaming. a year or two. After we built up that knowledge Since we continue to emphasize the non-gaming parts, and confi dence, we built we want to be able to cooperate with the universities in our fi rst casino in 2006. Macau to see if they will help us train people who can help with conventions, translation and show business. The GAMBLING HAS CLEARLY WORKED IN MACAU. central government wants us to be localizing as well. They SO WHY DOES YOUR EXPANSION PLAN INVOLVE want the senior positions to open up for local people. We ALMOST NO MORE GAMBLING? started adopting the strategy of bringing in local people for senior management and top management positions. The central government has made it very clear that they You can’t think of this as just a job, though. You have don’t want to see explosive growth in gaming revenue. to have the passion. You need teamwork, too. You can They want to see a balance of growth. For our part, we have 200 executives, all richly talented, but if they’re not want to see people coming to Macau to get married. We working together, you’re not going to be successful. You want to be a more family-oriented destination. We want have to be able to make every manager be able to hold to move away from the high rollers toward mass market, hands and work together. It’s a challenge. international customers, and ultimately convention busi- Integrity and honesty are also core values here. When ness. On a per-capita basis, Macau gets about 75 percent I give an assignment to a manager, I don’t want to have of the non-gaming revenue that Las Vegas does. We think to keep looking over their shoulder to see if they’re doing we’ll catch up to Vegas, if not exceed it. their job. This way we can cut a lot of the o© ce politics away. This is not an easy culture to instill, so you have to WHY DIDN’T YOU DO LAS VEGAS–STYLE DINING install it from the top. I have to lead. AND ENTERTAINMENT IN THE FIRST PLACE? MACAU WAS—AND STILL IS—THE ONLY LEGAL YOU WANT TO DIVERSIFY AWAY FROM ]GAMBLING empire. The family parlayed that fortune into the devel- PLACE IN CHINA TO GAMBLE. YOU WON A If we tried to copy Las Vegas and do exactly what they were IN MACAU, BUT ARE YOU INTERESTED IN BUILDING opment of dozens of residential projects throughout the LICENSE TO RUN A CASINO IN 2002, BUT WHY doing then we’d always be No. 2. Macau should be built for CASINOS IN NOW THAT THE GOVERNMENT world and owning or managing 32 hotels across Hong DIDN’T GAMBLING INITIALLY INTEREST YOU? the Asian market, and Asian people like diff erent things. SEEMS AMENABLE TO HAVING THEM? Kong, Macau, mainland China and the . Take food and beverages. In Las Vegas I see more bars than Lui’s Macau gamble also is in line with what the Chinese YOUR FAMILY MADE ITS FORTUNE IN I didn’t necessarily say, “We should go into a casino.” restaurants. Here I see more restaurants than bars. People Japan is a huge off ensive strategy for everyone, including government envisions for Macau (the local tourism board HONG KONG CONSTRUCTION. WHAT LED I thought we should go into Macau and use our back- here will enjoy a bowl of noodles more than standing up Galaxy. But it’s not just about money. We aren’t going to says Macau relies “too much” on gaming). Plus, the local YOU FROM HONG KONG TO MACAU? ground knowledge in hospitality. I never dreamed of and having a beer. In Las Vegas, people drink and gamble. invest everything that we can just to get a license. We gaming market may soon become a lot more crowded, coming to Macau and getting a casino license. My In Asia, people gamble, then drink. Also, there are great can’t carbon-copy what has been done in Macau. They’d with potential casinos in Melbourne, and even We eventually were thinking of getting into Hong Kong extended family in and I would go to Las shows in Las Vegas, and they play to full houses every want something very original and creative. We know that Japan (although Lui may have a hand in that one). real estate, but by the late 1980s that market was really Vegas on visits but it was purely for enjoyment. We knew day. Here, we need to bring in families and convention there are many Japanese who enjoy Michael Distefano, Korn Ferry’s chief marketing o© cer maturing. It’s tough to be in real estate in Hong Kong we didn’t know how to run big casinos. people before we can even talk about show business. gaming like , horse racing and chief operating o© cer, Asia Pacifi c, and Jimmy Ho, as a start-up. So in the 1990s we got into hospitality Also, up to now, Macau is, relatively speaking, a day- and boat racing. It’s a very acceptable TURN THE PAGE managing director of Korn Ferry’s Hong Kong o© ce, sat and hotels. Then in 1999, when Macau became part of WHAT CHANGED YOUR MIND? trip market. People come in, play, eat and go back to their form of entertainment. I think it’ll down with Lui to talk about his vision for his fi rm, how China, we thought we could contribute from the hos- hometowns on the same day. The Macau average trip is be a great market, and in 10 years, if INTERVIEW to attract talent to Macau and what other regions of the CONTINUES ON pitality end on Macau. By that time we had 10 years of We initially partnered with an American operator, but 1.5 days; a Las Vegas average trip is probably four days. done properly, that market could be world he’d like to reinvent. FOLD-OUT building hotels and managing hotels directly ourselves. the philosophies were too diff erent. We fi gured we We have to get people to stay longer. At Galaxy, we used close to Macau. • THE PAST, PRESENT

45 46 47 & FUTURE OF MACAU THE MACAU MAKEOVER Macau’s latest change, from a gambling-fi rst destination to an all-around tourist spot, would only be the latest in a centuries-long series of changes. CHINA MACAU THE PAST THE PRESENT THE FUTURE Trade of goods, legal and otherwise, Now a special district under China’s control, Macau has one of the largest population densities on the China wants to turn Macau into a well-rounded tourist attraction. fl ourished for centuries after established planet, with more than 650,000 people living in a space about half the size of Manhattan. The main economy The government and private developers are spending tens of billions of a permanent settlement in the 1550. is dominated by casinos, which take in over four times more gaming revenue than Las Vegas. dollars to attract visitors who are interested in more than gambling.

A woman at the entrance of Ruin of St. Paul’s, 1950. EXPANDING A MIX OF BOTH CHINESE AND WESTERN ARCHITECTURES, OPPORTUNITY GALAXY MACAU IT HAS BEEN THE URBAN HUB OF MACAU FOR CENTURIES. THROUGH LAND RECLAMATION, THE TOTAL PHYSICAL AREA OF MACAU HAS INCREASED EXPANSION 16.62 KM2 OVER THE LAST 30 YEARS. FRANCIS LUI’S MEGA-CASINO COMPLEX IS GETTING A $5 BILLION-PLUS EXPANSION Left: The area shown in silver GEARED TOWARD ATTRACTING on the map is “land” added to CONVENTIONEERS AND FAMILIES, Macau over the last decades. NOT GAMBLERS.

Ho HONG KONG–ZHUHAI– MACAU’S ORIGINAL MEGA-CASINO WAS BUILT MACAU BRIDGE IN 1970 BY . THE $10 BILLION INFRASTRUCTURE BEHEMOTH WILL CONNECT HONG KONG TO MACAU AND THREE MAJOR CITIES IN MAINLAND CHINA. GUIA COTAI EXPANSION FORTRESS MOSTLY OPEN WATER AS RECENTLY AS 2000, THIS LANDFILLED SPACE A-MA TEMPLE IT IS A SYMBOL IS THE HOME OF MACAU’S GAMBLING GROWTH, INCLUDING THE THE OLDEST TEMPLE OF MACAU’S $4.1 BILLION WYNN AND $2.5 BILLION PARISIAN. IN MACAU, DATING EUROPEAN BACK TO 1488, IS COLONIAL MACAU AIRPORT THEME PARKS China women’s DEDICATED TO THE LEGACY; IN 1622 national volleyball MAZU, THE TAOIST THE PORTUGUESE OPENED IN 1995, MFM HELPS TRANSPORT AND MORE SPORTS team player Zhu Ting. GODDESS OF SAILORS FENDED OFF A 6 MILLION PASSENGERS A YEAR. ALREADY HOME TO A GRAND AND FISHERMAN. DUTCH INVASION PRIX, THE GOVERNMENT WANTS DURING THE TO BRING MORE MAJOR SPORTS “BATTLE EVENTS TO MACAU AND WANTS TO OF MACAU.” BUILD A MAJOR THEME PARK.