High hurdle for Nagasaki to reapply for IR: prefecture

Mar 14, 2024 Newsdesk Japan, Latest News, Top of the deck  

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Japan’s Nagasaki prefecture (pictured) would face a “hurdle” that would be “quite high”, were it to decide to reapply to the national authorities for the right to host an integrated resort (IR) with casino.

The commentary was given on Wednesday at a meeting of the prefecture’s general affairs committee, as the local authority confirmed it would not make an administrative appeal against a December decision of ‘non-approval’ for Nagasaki’s IR District Development Plan, which had been submitted to the national government in April 2022.

The information was provided by Tomohito Waseda, head of the prefecture’s planning department, and Takeshi Komiya, the head of the IR Promotion Division under the planning department, according to information from GGRAsia’s Japan correspondent.

Any appeal against the national authorities’ decision would have needed to meet a March 27 deadline.

Regarding any future application window that might be opened, the prefecture stated: “The prefecture alone cannot decide right now.”

The local government body added: “Were the prefecture to make an application again, it should have to do all the IR work again from scratch. The hurdle is considered quite high.”

Based on Wednesday’s statement reviewed by GGRAsia’s Japan correspondent, the prefecture’s internal review of its IR efforts – which have been years in the making – is likely to be completed by the end of March, at which time it might have a clearer idea of whether it wants to persist with the policy goal.

Nagasaki prefecture observed in its statement to Wednesday’s meeting: “It is very difficult for the [national] government to overturn its decision, because the government has huge discretion in judging such matters.”

Were the prefecture to file an appeal, the process “would take about a year,” the local authority added.

Nagasaki prefecture’s IR Promotion Division – which is to be scaled down to an “IR Office” – had previously identified the private-sector partners for an IR as “Casinos Austria International Japan” and “Kyushu Resorts Japan and advisors”.

A figure of JPY438.3 billion (US$2.97 billion currently) had been mentioned for the fundraising for the Nagasaki scheme.

The prefecture had said that the “financial arrangers” for the project included Credit Suisse AG, CBRE, and Cantor Fitzgerald Securities Japan Co Ltd.

In late December, the Japan Tourism Agency – under the country’s Ministry of Land, Infrastructure, Transport and Tourism – had said Nagasaki’s IR proposal “did not meet the required standards” set by Japan’s national basic policy on IRs, and cited concerns about the financing arrangements.

The Nagasaki IR project was due to be on land at the Huis Ten Bosch theme park, in Sasebo city, which is part of the prefecture.

The prefecture stated in its Wednesday remarks: “Kyushu Resorts Japan has lost the efficacy of the IR land purchase sale reservation contract and the commitment letters in fundraising, after the non-approval.”

The prefecture also reiterated Kyushu Resorts had “no intention” of seeking an administrative appeal against the centre’s December decision.

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