There is “unlikely to be any national competition in the short term” to MGM Osaka, Japan’s first integrated resort (IR) with casino. So says Orix Corp, the main local partner alongside MGM Resorts International in the JPY1.27 trillion (US$8.03 billion currently) scheme.
The two each have a 40 percent stake in Osaka IR KK, the consortium developing the property.
“While the national government originally considered approving three IRs across the country, development of the other two projects has been put on hold for now,” stated Orix. It was referring to the potential for up to two other schemes, though only MGM Osaka has been approved. Last year a former national-level tourism official called for the opening of a second round of IR applications.
The MGM Osaka, to be at Yumeshima, an artificial island in Osaka Bay, is due to see construction start on the main building site in April, with the promoters eyeing a late-2030 opening.
Orix added in its Thursday statement on the project: “Regionally, meanwhile, Yumeshima will have to compete with the established IRs in Asia, particularly in Macau and Singapore.”
But the company further noted, citing its executive officer Toyonori Takahashi (pictured), that Japan’s other attractions, from food to culture, and nature, gave it strong advantages over other places.
As Japan’s first IR, “we believe it will attract many visitors and tourists to Osaka, both from the rest of Japan and from overseas,” said Mr Takahashi.
The company said – referring to the Japanese region where Osaka is located – the investment in MGM Osaka contributed to “Orix’s overall Kansai strategy of attracting and serving tourists and travellers to the region via the airports it operates, the hotels and entertainment facilities it manages, as well as the giant redevelopment of the Umekita district in central Osaka”.
Mr Takahashi further noted: “I believe projects like Yumeshima and Umekita contribute both to our company and to Kansai as a whole.”
The executive stated he was “confident” about the chances of the “success of Japan’s first integrated resort development”.
On Thursday the Osaka authorities confirmed that a motor racing circuit, an arena, hotel and other entertainment facilities are elements in two private-sector proposals by other entities for development next door to MGM Osaka.
