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Nagasaki IR plan approved by prefectural assembly

Shintaro Kamimura by Shintaro Kamimura
Thu 21 Apr 2022 at 05:32
The Japan IR Industry: A Golden Opportunity Squandered

Huis Ten Bosch, the previously planned site of a Nagasaki IR.

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At the Nagasaki prefectural assembly meeting held on 20 April, the prefecture’s area development plan for an IR bid was approved by majority vote. The prefecture will now work to submit its bid to the central government by the final 28 April deadline.

Casinos Austria International Japan (CAIJ) has been selected as the IR developer and operator, and the development costs for opening are estimated at JPY 440 billion (US$3.4 billion) in the proposal.

CAIJ and Nagasaki prefecture claim that, with the support of American commercial real estate services and investment firm CBRE Group, they have already obtained letters of commitment pledging investment exceeding the planned JPY 440 billion (US$3.4 billion) in development costs from domestic companies. However, the names of the investing companies have not yet been disclosed.

Kyushu Resorts Japan – a special purpose company established by CAIJ – will develop the hotel and MICE facilities with an aim to open for business in autumn 2027 if approved by the central government. Annual sales are estimated to reach JPY 218 billion (US$1.70 billion) by the fifth year of operation with an annual visitation of an estimated 6.73 million visitors, and an economic ripple effect of JPY 323 billion (US$2.52 billion).

Developments in Nagasaki on Wednesday were in stark contrast to Wakayama where the prefectural assembly voted against its own area development plan, meaning it is highly likely the bid will be abandoned. While the central government can approve up to three locations for IR development, it now seems only two – Nagasaki and Osaka – will bid.

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Shintaro Kamimura

Shintaro Kamimura

Shintaro Kamimura (from Tokyo) has worked for many years as a professional mahjong player, mahjong instructor and a writer. He travels far and wide both in Japan and overseas, fine-tuning his already extensive expertise in many areas of gaming, including Japanese pachinko and slot machines, and overseas casinos.

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