The central government of Japan has greenlit a revised implementation agreement for Osaka’s integrated resort project. Compiled by the Osaka Prefecture and the MGM Resorts consortium, which are behind the project, the plan would allow a formal agreement to be signed later this month.
The approval was announced by Japan’s Minister for Land, Infrastructure, Transport and Tourism, Tetsuo Saito, last Friday. It follows the prefecture’s submission of a revised agreement earlier this month.
Under the revised agreement, the opening of the integrated resort will be further delayed to 2030. In addition, the initial investment in the property has been increased by $1.3 billion to a total of $8.6 billion. The agreement revisions came amid rising prices of construction materials.
The current approval means that the prefecture and the MGM Resorts consortium could sign the implementation agreement in September, securing the future of the highly-anticipated Osaka integrated resort project.
Depending on how the situation unfolds, construction of the main facility could start in spring 2025.
The IR Project Is Closer to Realization Than Ever Before
The MGM Resorts consortium is comprised of the international casino and hospitality giant MGM Resorts International and its local partner Orix Corp. The planned casino resort would be built on Yumeshima, an artificial island in Osaka Bay.
The property would include as many as 2,500 hotel rooms and some 730,000 square feet of MICE space and tourism facilities. The resort is expected to be a major driver of tourism and visitation, bolstering the local economy.
Some experts believe that the project could turn Osaka into a preferred destination for tourism, reflecting the effect similar projects had in places such as Singapore.
Despite all the arguments in favor of the resort, some groups remain unconvinced. A year ago, for example, an anti-IR group pushed for a referendum in hopes of squashing the project. Certain political groups also opposed the project because of various concerns.
In spite of the challenges, the Osaka IR project is now closer to realization than it has ever been, signifying an important triumph for its supporters. The success of this project can not only provide boons to the Japanese economy but may also change the country’s relationship with the gambling industry.
In other news, Osaka selected the business consultancy Deloitte Touche Tohmatsu for the provision of support services for the development of its upcoming integrated resort earlier this year.
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