A government representative has told Inside Asian Gaming that the prospects for procuring the JPY 440 billion (US$3.8 billion) required to develop a Nagasaki IR at Huis Ten Bosch are strong.
There have been concerns aired within the Nagasaki prefectural assembly over the ability of the prefecture’s preferred partner, Casinos Austria International Japan (CAIJ), to fund the development given the lack of detail so far provided.
The plan is for JPY 175 billion (US$1.5 billion) to be funded by CAIJ and other domestic and international sources, with JPY 265 billion (US$2.3 billion) to come from debt.
A representative from the prefectural government told IAG, “The sources of funding have been determined with a high level of probability, but we can’t disclose the names yet. Once it has been approved at the prefectural assembly, we can give you specific names.”
At the prefectural assembly held on 10 March, CAIJ explained the area development plan for the proposed IR.
According to the plan, if approved by the national government, construction is to begin in 2023 with the opening planned to take place in 2027.
This is two years earlier than the proposed IR in Osaka – a bid being led by MGM Resorts and ORIX Corp.
There was also a call for public comments regarding the plan between December and January of this year, for which the results were announced at the assembly.
There were no opinions that led to amendments in the proposal, were considered impossible to reflect in the proposal or required further considerations.
There were, however, concerns regarding CAIJ.
“As a resident of Nagasaki prefecture, I am grateful that an IR will be built here. I am concerned about whether or not the operator is good. According to online articles, it seems like it will be hard to raise funds,” one comment read.
To this, the prefecture responded, “The specific measures being taken to increase the probability of procuring funding has been included in the area development plan and we are arranging for further financial stability.”
CAIJ has also established KYUSHU Resorts Japan, a special purpose company (SPC) to operate the IR. US hotel chain Hyatt, Austria’s Hotel Sacher and Swarovski, among others, are listed as participants in the SPC. Domestically, JTB, Toppan Inc. and Dwango are included.
The prefecture will hold public hearings on 28 and 30 March for local residents and after hearing their opinions, Nagasaki will draft the IR area development plan with the operator for submission to the central government on 28 April.
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