MARKET INSIGHT: INTEGRATED RESORTS: JAPAN
It is possible that Hokkaido could join a supplemental round for IR bids in the future. Its initial interest was deferred in the first round after an environmental impact study was required. Tis has now been completed and it is said an IR in this region would extend Hokkaido’s appeal beyond ski holidays. And although Tokyo initially passed on an IR bid due to hosting big sporting events at the time, this city too could possibly enter a supplemental round. With a population of 30 million it could easily beat both Osaka and Nagasaki with predicted annual revenues of $6bn.
However, as most operators pulled out as the tender process became lengthy, complicated, and expensive, many believe their interest may only return now depending on Nagasaki’s future.
WHAT WENT WRONG?
Japan’s reluctance to change is a key element. Many fear the golden goose may nose-dive before Japan actually gives the final go-ahead for the IR developments.
Te public acceptance of casinos is also a huge battle. Te idea of Integrated Resorts in Japan remains staunchly unpopular and casino gambling is often associated with addiction and mafia associations and the government has done little to present an alternative view. Odd really considering the Japanese obsession with the semi-legal pachinko slots with around 8,500 pachinko parlours and 2.4 million machines in the country.
Several scandals have also managed to hinder the procedures with the arrest of a lawmaker who campaigned for the casino resorts, whilst lengthy and perhaps inefficient law-making, high gaming taxes, and short licensing periods aren’t the incentive required for such ambitious projects.
With gambling largely illegal in the country the authorities are clearly cautious about the legalities. At the moment there are four public sports permitted (horse racing, bicycle racing, powerboat racing, and motorcycle racing) plus the public lottery and Japanese Football pools. Pachinko and Pachislot continue to exist under a grey umbrella whilst online gambling is still illegal.
Te Integrated Resort Promotion Law and the IR Implementation Law were enacted in 2016 and 2018 respectively which created a framework for the operation of the casino resorts.
Officially known as Bill Promoting Implementation of Specified Integrated Resort Areas, it was sponsored by a group of lawmakers mostly from the ruling Liberal Democratic Party and the aim behind the plan is to attract more foreign tourists into the country by legalising integrated casino resorts, featuring hotels, shops and conference spaces at various locations across the country whilst helping cash strapped jurisdictions.
Travel is almost back to normal whilst the situation is expected to completely normalise this month (May) when Japan is due to downgrade the
categorisation of the virus. This means the only
requirement for travellers will be either proof of three Covid vaccines or a negative Covid
test result for entry. There is an exception however for
travellers arriving by direct flights from China who must take a pre-arrival Covid test regardless of vaccination
status. Visitors can pre-enter all their data online to allow for a fast-track entry into the country.
A VERY SUCCESSFUL TOURISM INDUSTRY
In October last year Japan fully re-opened its borders to tourists after two years of strict Covid restrictions which saw the country virtually closed off.
Travel is almost back to normal whilst the situation is expected to completely normalise this month (May) when Japan is due to downgrade the categorisation of the virus. Tis means the only requirement for travellers will be either proof of three Covid vaccines or a negative Covid test result for entry. Tere is an exception however for travellers arriving by direct flights from China who must take a pre- arrival Covid test regardless of vaccination status. Visitors can pre-enter all their data online to allow for a fast-track entry into the country.
Japan relies heavily on Chinese tourists. In November 2019 there were almost 150,000 Chinese visiting Japan compared to 84,300 in November last year.
It is hoped as tourists return it will help invigorate the economy as the yen recently slid to a 24 year low of ¥144 to the dollar.
Covid has had a significant impact on Japan’s tourism industry. Some 31.8 million international tourists visited Japan in 2019 with ¥4.8 trillion spent. As Covid hit, the year 2020 saw just 4.1 million international visitors whilst
WIRE / PULSE / INSIGHT / REPORTS P87
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