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Genting Singapore, Melco Resorts qualify for Yokohama RFP

Tomo Yamamoto by Tomo Yamamoto
Tue 1 Jun 2021 at 06:20
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Yokohama has announced that only two operators, Genting Singapore and Melco Resorts & Entertainment, have passed its qualification screening process to take part in the city’s Request for Proposal (RFP) to develop an integrated resort.

The candidate operators were named on Yokohama city’s website on Monday, which also revealed that Genting Singapore has teamed up with Japan’s Sega Sammy Holdings and Kajima Corporation as part of a powerful consortium. Sega Sammy is one of the country’s largest pachinko game manufacturers and is a 45% joint venture partner in South Korean integrated resort Paradise City, located in Incheon, alongside Paradise Co.

Melco has partnered with local construction and civil engineering firm Taisei Corporation.

A third submission from Shotoku Corp did not qualify.

News of Genting Singapore and Melco Resorts progressing to the next stage of Yokohama’s RFP comes just two weeks after Galaxy Entertainment Group announced that it would not take part. Las Vegas Sands and Wynn Resorts both withdrew last year.

According to the implementation policy announced by Yokohama city in January of this year, the aim is for Yokohama’s IR to be built to the world’s highest standards with Yamashita Pier, covering around 43 hectares, named as the candidate site.

The city officially announced its IR bid in August 2019 and by December 2019 had started a request for concept (RFC), with seven major operators participating.

However, the COVID-19 pandemic and concerns over substantial development costs, combined with extremely strict regulations, appears to have dampened the mood for many. A city representative told IAG that Yokohama was grateful to receive its two applications from Genting Singapore and Melco and that they were still seeking the highest standards as per their implementation policy.

Yokohama will now accept proposal documents until 11 June, after which time the city will begin the process of selecting its operator partner.

The city will draft an area development plan with its selected operator to submit to the central government by April 2022. The central government can approve plans for a maximum of three locations in the country and Yokohama will be competing with Osaka prefecture/city, as well as Wakayama and Nagasaki prefectures.

However, it is unlikely that the process for a Yokohama IR will be a smooth one. Resident groups opposing the bid are launching petition campaigns and those with interests in Yamashita Wharf have also raised their opposition to an IR, rallying behind mayoral candidates who will oppose an IR in the upcoming elections scheduled for August of this year.

The business community itself remains enthusiastic with an economic group of Naka Ward, where the candidate site is located commenting, “[An IR] would be an important profit base, connecting Yokohama to the future. We hope that we can support this as a local area without getting emotional.”

The opening target is set for the latter half of the 2020s.  The city of Yokohama wants to use an IR bid as a catalyst for promoting employment and revitalizing the tourism industry in areas severely impacted by the pandemic.

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Tomo Yamamoto

Tomo Yamamoto

Born in Okayama, Japan in 1964, Tomo has covered horse racing, professional baseball, golf, boxing and more in his role as a sports writer. He first encountered casinos before Macau was returned to China in 1999. He has traveled to South Korea and Manila to cover events and scope out the local scene. He has studyied “How to get along with casinos,” a topic he learned of from Osaka University of Commerce.

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