Mar 20 (newsonjapan.com) - Gov. Hirofumi Yoshimura, of Osaka Prefecture and Osaka City, announced on September 28th 2021 that they would partner with MGM Resorts International to negotiate the construction of a casino resort under Japan's liberalized gaming regulations.
The projected $10 billion complex was also detailed, demonstrating MGM's goal to deliver a world-class resort to Osaka. The plan is to transform the area into one of the world's finest leisure and entertainment destinations. For the Osaka project, MGM was the only bidder. The projected world-class hotel and amenities are expected to aid in promoting tourism in the Kansai area.
"It is an honor to be chosen as Osaka's partner in constructing an integrated resort. I appreciate the city in conducting a rigorous and deliberate approach to accomplish its aim of constructing an international class IR in Osaka," stated MGM Resorts CEO & President Bill Hornbuckle. "We will work together with prefectural/city municipal administrations to provide an iconic, distinctly Japanese destination warranting Osaka's designation as host to one of Japan's first integrated resorts."
The government authorized casinos in 2018 with the approval of the, most awaited, casino bill to encourage tourism. Since its passing, international businesses have been eyeing Japan for development potential. However, due to the pandemic's effect, Japan has delayed plans to accept official applications from towns interested in hosting integrated resorts.
The application period, which was initially set to begin in January 2021, had been rescheduled to start in October. Local governments are expected to conduct an open bidding procedure to pick a private-sector bid partner. Yoshimura stated during a media briefing that the prefecture and city want to build the "world's finest growth-oriented integrated resort," noting that the projected investment level for the Osaka resort is "extremely ambitious and aggressive."
What is meant by the phrase "Integrated Resorts" (IR)?
An integrated resort (IR) is a huge complex that includes a luxury hotel with gambling facilities, as well as other attractions such as meeting spaces, theaters, amusement parks, and retail malls. The concept originated in Singapore. The phrase integrated resort' is a euphemism adopted because of hostility to casinos. Licenses were issued to Marina Bay Sands and Resorts World Sentosa, which both commenced operations in early 2010, and were by 2013 the most lucrative casinos around the world. This kind of notion was first created in Singapore in order to increase tourist revenue. Following its phenomenal success, other countries across the globe, including Australia, Japan, and South Africa (Sun City), have taken the required measures to build Integrated Resorts.
MGM's Experiences With Integrated Resorts
MGM Resorts International is a worldwide hospitality business with operations in various states of the USA as well as numerous countries of the world. They are widely known for their operations in MGM Grand Las Vegas. It is the third-largest Integrated resort worldwide.
The 30-story main structure is acquired by MGM Growth Properties and The Blackstone Group and managed by MGM Resorts International. The facility is 89 meters tall. The resort has 2.7 hectares of outdoor pools, rivers, waterfalls, a 35,000-square-meter conference center, and the MGM Grand Garden Arena. Additionally, it is home to various stores, nightclubs, and restaurants, as well as Clark County's biggest casino, which spans 15,930 square meters.
Project Particulars
Hotel
- Total number of rooms: 2500
- Restaurants
- Chain shops
- Banquet Hall
- Spa
- Fitness Facilities
Convention Complex
- Conference facility area: 400,000 square feet
- Accommodation: 6000 visitors
- Exhibition space: 330,000 square feet
Entertainment
- Theater accommodation: 3500 seats
Socio-Economic Impact of The Project
Increases In Domestic and International tourism
Japan's economy, whose demographic has begun to decline due to a low birth rate and an aging population, is anticipated to contract more in the future. Consequently, the government is aiming to increase domestic income via increasing overseas tourism. In addition, the project's purpose is to encourage tourism in the surrounding region, which includes the Kansai Tourism Center, Japan Food Pavilion, Garden Theater, and Kansai Art & Culture Museum — all of which contribute to the creation of a gateway for more tourism in Japan. If the project succeeds, the Osaka Integrated resort is estimated to draw around 20.5 million domestic and international tourists annually, with an estimated economic impact of more than JPY 760 billion.
Growth In Employment Opportunities
The greater the project, the more personnel will be required. The establishment of these Integrated Resorts is projected to generate a significant number of job openings. This project is planned to employ around 15,000 individuals when the IR is built in the latter part of the 2020s – perhaps in time for the Osaka World Expo 2025.
Conclusion
This integrated resort facility would represent a landmark event for Japan's economy and tourism. However, we have to wait for a couple of years to see whether our expectations meet reality.
