The Japanese government has decided to host an integrated resort (IR) that includes casinos in Osaka for the first time in the archipelago. The Nihon Keizai Shimbun reported that the government approved the maintenance plan of Osaka Prefecture and Osaka City at the IR Promotion Headquarters headed by Prime Minister Fumio Kishida.
The Osaka Prefecture is preparing to open as early as fall and winter 2029. Osaka is also set to host an international fair in 2025.According to MBS News, Kishida said, “The comprehensive resort will attract many tourists from home and abroad. “As Japan is pushing for a tourism powerhouse, it is an important mission,” he said.Osaka IR then emphasized, “After the 2025 International Fair (Osaka, Kansai Full Night), it is expected to contribute to the development of the Kansai region and the growth of Korea, while also promoting Japan’s charm to the world.”
According to Nikkei, the initial investment cost was set at 1.8 trillion yen. It is expected to attract 20 million visitors annually and generate 520 billion yen in annual sales.OSAKA IR Co., Ltd. will be in charge of the operator. Osaka IR Co., Ltd. is a joint venture invested by about 20 Kansai companies, including Panasonic Holdings and Daikin Industrial, in addition to MGM Resorts and International and Orix in the United States. Some of the proceeds go to the Japanese government and local governments.
Yume Island in Osaka, where Japan’s first casino facility will be built. The part marked in yellow is the artificial island of Yume Island.
The Osaka IR will be built on the artificial island “Yume Island” located in Osaka Bay. Casinos, international conference halls, exhibition halls, luxury hotels, and theaters are planned to be built.According to data submitted by Osaka Prefecture and the city, the casino area is about 23,000㎡. The exhibition facility will start with 20,000㎡ at first, expand to more than 60,000㎡ within 15 years of its opening, and more than 100,000㎡ by 2058. The strategy is to attract tourists to various entertainment facilities by maintaining swimming pool facilities. The expert committee established by the Ministry of Land, Infrastructure and Transport judged that the zone maintenance plan met all requirements based on the criteria for the international competitiveness of the facility, the effect of contributing to the local economy, and (gambling) addiction measures. Minister of Land, Infrastructure and Transport Tetsuo Saito officially approved the plan on the 14th.
Accordingly, the operating business operator must apply for a casino license to the “Casino Management Committee” established in foreign countries of the Cabinet Office. The management committee examines whether it is related to anti-social forces and whether there are any illegally modified casino devices. Once the license is issued, the opening of the business will be officially decided.Meanwhile, Nagasaki Prefecture, which submitted the same plan with the Osaka Prefecture, has suspended its decision. It was planned to attract IR to Haustenbos in the prefecture, but the red light was turned on as the management of the Credit Suisse Group, one of the sources of funding, became unstable. The government has decided to continue reviewing the Nagasaki Prefecture plan later.The Japanese government has set a goal to raise the number of tourists visiting Japan to 60 million by 2030. The target is double the record of 31.88 million in 2019. In other words, Osaka IR is a touchstone for achieving this goal.Regarding IR, the government plans to first recognize up to three places and set them by law. In the past, leading local governments have also tried to attract and withdrawn, so it is not expected to be easy to find candidates.Some local residents are also anxious about the IR plan, which includes casinos. Nikkei reported that there are deep-rooted concerns that security may deteriorate or the number of gambling addicts may increase due to the increase. The government said it would limit Japanese visitors and regulate them to the “world’s highest level.” Evening Fuji pointed out that there are still problems such as soil problems, such as concerns over “liquidation” in which the ground weakens in the event of an earthquake. According to Fuji, Osaka City will have to pay about 79 billion yen for liquefaction measures.
Chang Young Choi
US ASIA JOURNAL
