MARKET INSIGHT: INTEGRATED RESORTS: JAPAN
Osaka prefecture is one of six prefectures in the Kansai region with 8.8 million population whilst its capital city Osaka is Japan’s second largest metropolitan area after Tokyo.
Osaka city has been the economic powerhouse of the Kansai region for centuries and has a 2.7 million city population. Te surrounding Kansai regional population totals almost 22 million.
Osaka’s dwindling population and need to promote tourism and build MICE facilities have been key elements of its IR bid. It has always been a clear favourite for an IR with the man- made artificial island Yumeshima as the location.
Yumeshima is about 10km west of downtown Osaka and near the mouth of the Yodo River and is about 390 hectares in total. It is now home to one of the biggest container terminals in Japan and has great highway and road access to all areas of the Kansai region.
Osaka is fed by the Kansai International Airport which has an international network of 75 cities worldwide (1,433 flights per day) and connects 17 domestic cities (70 flights daily) and is used by 6.98 million people (2019 data). It is a 40- minute car journey or 70-minute train ride from the airport to the Osaka IR.
Domestically there are three airports with extensive rail and road services including Osaka International Airport as a hub airport which has a network of 26 cities (185 flights a day) and 15km from the IR and Kobe Airport which connects seven cities (33 flights a day).
In addition, the Osaka Port International Ferry Terminal provides international and domestic access from Chine and Korea and is just 10 minutes by car to the proposed resort.
Tere are plans in place to improve traffic access to Yumeshima and the development of a new train station to link up the Osaka IR through the extension of the Osaka Metro Chuo line to ensure access from the major stations in Osaka city. Te Yumemai Ohashi bridge and Ymesaki Tunnel provide road links to Yumeshima and the bridge is being widened whilst a large scale bus terminal and parking is being developed within the IR area.
THE PROJECT
Osaka announced its interest in an IR back in 2014 and the Osaka Prefecture IR Promotion Bureau was set up in 2017.
In September 2021 Osaka confirmed a consortium between MGM Resorts International and Japanese financial services conglomerate ORIX, as its IR partner. In reality this was the only applicant after Galaxy and Genting withdrew their Osaka bids. MGM has been keen from the beginning and the company has
In September 2021 Osaka confirmed a consortium between MGM Resorts
International and Japanese financial services
conglomerate ORIX, as its IR partner. In reality this was the only applicant after Galaxy and Genting withdrew their Osaka bids. MGM has been keen from the beginning and the
company has invested heavily via its Osaka-First campaign. The two own a 40 per cent stake each whilst another 20 Kansai companies, including Osaka-based Panasonic,
Kansai Electric Power and East Japan Railway, hold the remaining 20 per cent.
invested heavily via its Osaka-First campaign.
Te two own a 40 per cent stake each whilst another 20 Kansai companies, including Osaka- based Panasonic, Kansai Electric Power and East Japan Railway, hold the remaining 20 per cent.
Te project is worth ¥1.08 trillion (US$8.1bn) and will be 492,000sq.m in total and include approximately 2,500 rooms across three hotel brands – the MGM Osaka, MGM Osaka Villa and Musubi Hotel. Tere will be MICE space, a 3,500 seater theatre, and tourism facilities.
Tere are expected to be around 485 meetings and conventions held annually and 46 exhibitions and trade fairs after the third year of opening. Te conference facilities will have a capacity for over 6,000 people.
It is estimated in the provisional plans that the casino area will be around 23,115sq.m (not more than three per cent of the total IR facility area) and will hold approximately 470 table games and 6,400 electronic games. Age limit for entry will be 20 years.
Osaka City gave its consent to the project in April last year and the Ministry of Land, Infrastructure, Transport and Tourism, which is the public department overseeing the resort
WIRE / PULSE / INSIGHT / REPORTS P91
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