Osaka, Japan’s metropolis, is facing the possibility of allocating an extra JPY25.7 billion (US$174.6 million) in public funds for land improvement at its designated integrated resort (IR) site, which includes a casino. The need for this additional spending could arise after the project’s anticipated opening around autumn 2030. The funds would be directed toward a 6-hectare plot of land earmarked for IR expansion and an additional 14 hectares currently designated for parking and landscaping, which could also be repurposed for facility expansion.
Background on the Osaka IR Project
The Osaka IR project is a collaboration between local authorities and private-sector partners, including leading U.S. casino operator MGM Resorts International and Japan’s Orix Corp. The project is situated on Yumeshima, an artificial island in Osaka Bay, and is already committed to a budget of JPY78.8 billion to address soil liquefaction and contamination issues before construction begins.
Potential IR Expansion
The 6-hectare area designated for potential IR expansion would allow for the addition of facilities such as meeting spaces, incentives, conferences, exhibitions (MICE) venues, and more hotel rooms. This expansion is outlined in an updated draft implementation compact between Osaka authorities and their private-sector partners.
Project Timeline and Costs
The latest draft agreement stipulates that any further project expansion will be determined within 10 years of the initial opening, which is currently scheduled for autumn 2030, slightly delayed from previous estimates. The initial development cost estimate has also risen by 17.6 percent to JPY1.27 trillion.
The Osaka IR project is a significant endeavor that aims to boost tourism and economic development in the region. However, the need for additional public funds underscores the complexities and financial challenges associated with such ambitious projects. As development progresses, stakeholders will closely monitor the project’s timeline and budget to ensure its successful realization.