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MGM’s Osaka evaluation score revealed as government says pleased with plans around MICE, tourism and economic impact

Shintaro Kamimura by Shintaro Kamimura
Sun 16 Apr 2023 at 13:40
MGM Resorts unveils Osaka IR concept
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Japan’s Minister of Land, Infrastructure, Transport and Tourism, Tetsuo Saito, says the examination committee that certified Osaka’s bid to develop an integrated resort was “positively” satisfied with the bid team’s proposals around MICE facilities and boosting the local economy. He also expressed his hope that the IR, to be developed by a consortium led by MGM Resorts International and local partner Orix, will become a tourism base from which Japan can further market itself to the world.

Saito’s comments followed news of Osaka’s successful bid on Friday morning, with information released shortly after showing that the MGM consortium achieved a score of 657.9 points from a possible 1,000 according to the examination committee’s criteria. A score of 600 or above was considered a pass.

“The examination committee conducted a thorough and careful examination over a period of about a year,” Saito said.

“The fact that it includes what will become Japan’s largest convention facility and the economic ripple effects were among the factors that contributed to a positive evaluation and approval. We hope that it will become a tourist base that spreads the charm of Japan to the world.

“A casino license will be required for running the casino part of the business, which will require confirmation of sufficient measures to prevent and counter [gambling] addiction. I believe the Casino Management Committee will make these considerations going forward. From the perspective of the MLIT, Osaka’s plan includes integration with related facilities to ensure effectice addiction countermeasures and we plan to continue monitoring the progress of development.”

The expert committee examined a wide range of development plans across 25 line items, with the Osaka bid scoring highly for items such as its ability to carry out IR business operations (37.9/50) and effect on the local economy (37.1/50). According to the development plan, the IR will create 116,000 jobs during construction and 93,000 jobs in operation.

Overall facility scale (8.6/10) and scale of MICE facilities (15.7/20) also scored well, although scores related to project design and community relations efforts were mixed.

Officials from the MGM-led consortium will now finalize  details around the IR development and opening schedule before signing an implementation agreement that will precede the start of construction work.

On the progress of Japan’s only other IR bid, from Nagasaki and Casinos Austria, Saito said, “We will conduct a careful and thorough examination without setting a deadline for the examination committee.”

Major item Middle item Evaluation item Points allocation Score
Contribution to the realization of internationally competitive and attractive stay-type tourism
(450 points)
Entire IR area (100 points) 1. Concept 30 18
2. Architectural Design 30 19.7
3. Facility scale 10 8.6
4. Universal Design 30 18.9
MICE facilities (120 points) 5. Scale of MICE facilities 20 15.7
6. Functions of MICE facilities 50 32.9
7. MICE facility management 50 34.3
Attractive facility (50 points) 8. Attractive facilities 50 35
Customer transport facilities (50 points) 9. Customer referral facilities 50 34.3
Accommodation (60 points) 10. Scale of accommodation 20 14.9
11. Services at restaurants 10 7.1
12. Services at accommodation 30 21.9
Other facilities (30 points) 13. Other facilities 30 19.3
Casino facilities (20 points) 14. Casino facility design 20 11.1
Land where the IR will be developed (20 points) 15. Traffic convenience 5 3.7
16. Improving transport access 15 10.9
Economic and social effects (150 points) Effect on tourism (50 points) 17. Effect on tourism 50 29.3
Effect on local economy (50 points) 18. Effect on local economy 50 37.1
Contribution to achiveing goals of government’s 2030 tourism strategy (50 points) 19. Contribution to achiveing goals of government’s 2030 tourism strategy 50 32.9
Ability and system to operate business stably, continuously and safely
(200 points)
Ability to carry out IR business operations (50 points) 20. Operator’s ability to carry out IR business operations 50 37.9
Financial stability (50 points) 21. Financial stability 50 33.6
Disaster prevention and mitigation measures against infectious diseases (50 points) 22. Disaster prevention and mitigation measures against infectious diseases 50 33.7
Community relations efforts (50 points) 23. Community relations efforts 50 27.1
Utilization of profits from the casino business (50 points) Utilization of earnings from casino business (50 points) 24. Utilization of earnings from casino business 50 30
Elimination of harmful effects (150 points) Addiction measures (150 points) 25. Addiction measures 150 90
TOTAL POINTS 1,000 657.9

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Tags: irJapanMGM ResortsOsakasCoreTetsuo Saito
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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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