However, Japan’s Ministry of Land, Infrastructure, Transport, and Tourism is having none of it, as the government has qualms about the feasibility of the project as submitted by Nagasaki.
Nagasaki Misses the Mark with Government
Kyushu Resorts Japan and Nagasaki prefecture will have to go back to the drawing board or fold their bid altogether. Government officials have expressed open worry over the nature of financing of the proposed projects.
There seems to be an unsatisfactory level of commitment outlined in the letters that are supposed to show support and outline the terms of funding. They are customary and usually enough to convince government officials to indeed agree and proceed with the further stages of a project.
As such, the panel that weighed in on the decision said that they still doubted whether the proceedings could move on due to this lingering fear of lack of funds. It’s not just the funding, though, as the panel is similarly dubious of the chosen companies that will supposedly operate the project.
Casinos Austria International was the only participant who had a hands-on approach in such matters, and it was unlikely that CAI alone would make up for all the participants in the Kyushu Resorts Japan consortium. More worryingly, CAI’s investment is smaller than that of keener but less experienced parties.
Lack of Expeirence and Other Concerns
There was also outlined fear about how the proceeds from an operational casino resort would be divvied up, as too many investors – as is the case with Nagasaki’s bid – would mean that there will be many parties that are eager to recoup their investment overlook other important aspects, such as eliminating the harmful influence of casinos.
Nagasaki still has plenty of time to consider a revised bid, although securing more investors – or the right investors as it were – and eliciting stronger commitment would prove the most difficult part.
Still, overblow fears of recession and a flagging economy may embolden overseas companies with plenty of experience and cash on hand to move more strongly on Japan, and use the near-miss Nagasaki just had with the government to rally and potentially host one of the casino resorts – a total of three to arrive in the year over the next decades or so.
Osaka in the meantime has been gaining steadily with its construction and is likely to arrive on time.