Prime Minister Fumio Kishida said on April 14 that the resort complex is very important for Japan's goal of becoming a "tourism powerhouse", the same day the government approved plans to open the first casino.
"It will contribute to the development of our country," Mr. 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 bring economic benefits and promote job growth.
The resort complex will be built on the artificial island of Yumeshima in Osaka, and is targeted to open in the second half of 2029.
A model of the resort complex in Osaka is expected to open in late 2029. (Image courtesy of MGM Resorts International and Orix)
The casino will be adjacent to an international convention center and luxury hotel. The resort complex is expected to attract 20 million visitors a year and generate 520 billion yen ($3.8 billion) annually.
A joint venture called Osaka IR will manage the resort, formed by a group of 20 investors, including MGM Resort International, Orix, Panasonic Holdings and Daikin Industries.
"The Osaka World Expo 2025 and the resort complex will turn around the sinking fortunes of the Kansai region," said 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 Sea of Japan coast, are expected to reach 1.1 trillion yen a year, with 93,000 jobs created. Osaka City and the prefecture are expected to collect 106 billion yen in annual taxes and other revenues from businesses. "This will be a turning point for Osaka," Osaka Mayor Hideyuki Yokoyama said Friday.
Osaka is studying Singapore's successful casino model and applying it to its own. Marina Bay Sands and Resorts World Sentosa, which both opened in 2010, both feature theaters, aquariums and theme parks.
In 2019, Singapore welcomed 19 million foreign tourists, a 60% increase from a decade ago. Despite its small land area, Singapore, the city-state, has secured its place as an international tourist destination after its resort complexes opened. Osaka is looking to build a resort complex that will appeal to people from all over the world. The resort will feature restaurants, shops selling traditional Japanese crafts, along with places where visitors can experience Japanese flower arrangement and tea ceremony.
The resort will include a tourist center that will direct visitors to the Kansai region. One of the challenges is establishing a viable revenue model. Osaka aims for the casino to generate 80% of the complex's revenue. However, government regulations limit gaming floor space to 3% of the entire resort complex, or a maximum capacity of 11,500 people.
