GGRAsia – MP tied to key Osaka party bids Japan nod local IR this year

MP tied to key Osaka party bids Japan nod local IR this year

Dec 01, 2022 Newsdesk Japan, Latest News, Top of the deck

An Osaka MP who heads the Japan Innovation Party – linked to Osaka Ishin, previously the Osaka Restoration Association, that conurbation’s lead political grouping – has called on the country’s government to pledge it will approve Osaka’s integrated resort (IR) plan featuring a casino by December 31 “at the latest”.

“Osaka prefecture and city have been waiting for the approval of their IR District Development Plan all this time. We strongly ask the government to do so by the end of calendar 2022 at the latest,” said Noboyuki Baba, according to information collated by GGRAsia’s Japan correspondent.

MP Mr Baba, who represents Osaka’s 17th district, was speaking on Monday in a question and answer session of the budget committee of the lower chamber of Japan’s parliament, the House of Representatives.

He was addressing Tetsuo Saito, the Minister of Land, Infrastructure, Transport and Tourism, whose department is overseeing the assessment of a bid submitted in April by the Osaka metropolis for a casino resort. Nagasaki prefecture and city also made an application to host a resort in its community.

In his reply, Mr Saito said his ministry was “going ahead with the examination procedures very actively.” He did not provide a timetable for the a final decision on the Osaka IR bid.

Another Osaka MP recently said delays beyond March next year could jeopardise the possibility of such a project (pictured in an artist’s rendering) being ready by the end of the current decade, as mentioned by its proponents.

Mr Saito, in replying to Monday’s calls, made reference to “land issues” for the proposed Osaka site.

Osaka’s city mayor had flagged last month that the national authorities had asked for more information concerning the proposed site.

Mr Baba also referred in his parliamentary comments on Monday, to Expo 2025, a major international exhibition due to be held at Osaka’s Yumeshima island, the location planned for Osaka’s proposed JPY1.08-trillion (US$7.92 billion at current exchange rates) casino resort in partnership with MGM Resorts International.

Expo 2025 is due to run for six months from April 2025. The promoters of an Osaka IR have expressed hope the latter resort can open by the end of the current decade.

The Osaka MP stated: “IR should have a huge impact on the 2025 Osaka and Kansai Expo. Some companies have been saying that they could invest in the Expo if IR is determined.”

He added, addressing Mr Saito: “Again, I would like to hear how important the government thinks the IR policy is and how the overseas casino markets are doing.” The latter was understood to a reference to business recovery in such places post-Covid-19.

In his reply, the minister stated: “The government considers the IR policy as one of the major policies to be a tourism-driven country. It has never changed.”

Mr Saito added: “The expert panel set by the ministry has been looking into the plan, especially now in the Yumeshima land issues…”

Mr Saito observed: “The casino markets in Nevada, in the U.S., and Singapore have recovered strongly… and the MICE [meetings, incentives, conferences and exhibitions] businesses there also have restarted significantly.”

He also made reference to the uneven recovery of the Macau casino market amid China’s zero-Covid policy.

“In Macau, the zero-case policy still has been suppressing the market,” noted the minister.