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Prime Minister Fumio Kishida affirmed on April 14th that the resort complex is crucial to Japan's goal of becoming a "tourism powerhouse," the same day the government approved plans to open its first casino.
"It will contribute to the development of our country," Kishida said, according to Nikkei Asia.
A resort complex includes entertainment facilities such as theaters, casinos, convention centers, and hotels. Japan expects such resort complexes to generate economic benefits and boost job growth.
The resort complex will be built on the artificial island of Yumeshima in Osaka, with the goal of opening in the second half of 2029.
The model resort complex in Osaka is expected to open in late 2029. (Image provided by MGM Resorts International and Orix)
The casino will be adjacent to an international convention center and a luxury hotel. This resort complex is expected to attract 20 million visitors annually and generate 520 billion yen (US$3.8 billion) in revenue each year.
A joint venture called Osaka IR will manage the resort, formed by a group of 20 investors, including prominent names such as MGM Resort International, Orix, Panasonic Holdings, and Daikin Industries.
"The Osaka World Expo 2025 and the resort complex will turn around the declining fortunes of the Kansai region," commented a prominent business executive in the Kansai region, which includes Osaka and Kyoto.
The economic benefits for the Kansai region, including Fukui Prefecture on the Japanese coast, are projected to reach 1.1 trillion yen annually, with 93,000 jobs created. Osaka City and the prefecture are expected to collect 106 billion yen in annual taxes and other revenue from businesses. "This will be a turning point for Osaka," Osaka Mayor Hideyuki Yokoyama affirmed on Friday.
Osaka is studying Singapore's successful casino model and applying it to its own. Marina Bay Sands and Resorts World Sentosa, both opened in 2010, feature theaters, aquariums, and theme parks.
In 2019, Singapore welcomed 19 million foreign tourists, a 60% increase from a decade earlier. Despite its small land area, Singapore, a city-state, has secured its position as an international tourist destination after the opening of its integrated resort complexes. Osaka is seeking to build a resort complex that will attract people from all over the world. The resort will feature restaurants, shops selling traditional Japanese crafts, and venues where visitors can experience Japanese flower arranging or tea ceremonies.
The resort will include a tourist center focused on sightseeing in the Kansai region. One of the challenges is establishing a viable revenue model. Osaka aims for the casino to generate 80% of the entire complex's revenue. However, government regulations limit the casino floor space to 3% of the entire resort complex, equivalent to a maximum capacity of 11,500 people.
