Miyagi prefecture has released a survey report exploring the possibility of an IR bid.
However, with total costs estimated at JPY 330 billion (US$3 billion), the prefecture has also expressed concerns about “excessive investment” that could take “20 to 46 years” to recover.
Hideto Suzuki, chief of the Ministry of Economy, Trade and Industry and Tourism, acknowledged this, stating that it must be accepted that the possibility of an IR is difficult, as reported by the Kahoku Shimpo.
Miyagi prefecture is the economic heart of the Tohoku region. The candidate site is near Sendai Airport, a major transportation hub in the area. The survey on the possibility of an integrated resort tourist facility was outsourced to 77 Research & Consulting Co., Ltd. (77 Banking Group). They will continue with the survey to investigate whether the economic effects of an IR could lead to recovery from the Great Tohoku Earthquake of 2011.
According to the survey report, the IR would be expected to open in 2025 in the area of Sendai Airport. The total investment is estimated at approximately JPY 330 billion and the number of annual visitors after five years is predicted to be between 2.85 million and 5.39 million. The economic ripple effect is estimated at JPY 510 billion (US$4.6 billion) for the facility development and JPY 150 billion (US$1.4 billion) annually for facility operations.
The Miyagi governor is likely to decide on the prefecture’s policy for an IR bid between February and March, when the national government will determine the Basic Policy, including criteria for area selection. Miyagi prefecture is the only prefecture/government designated city considering applying for an IR in the Hokkaido and Tohoku regions following Hokkaido’s recent decision to withdraw its plans for an IR bid.
