According to information released by the authorities, the Osaka Prefecture IR Evaluation Committee gave MGM and ORIX a total score of 788.5 points from a possible 1,000 under its RFP scoring system, with the prefecture and city subsequently determining that the consortium qualified as a partner to develop and operate an integrated resort.
“Currently, the global expansion of the coronavirus pandemic is having a serious impact on socio-economic and tourism-related industries, but the proposal from the MGM/ORIX consortium shows a deep understanding of the purpose of this project,” Osaka said in announcing the results.
“Looking ahead to post-corona, the realization of a growth-type IR that makes use of the tourist attractions of Osaka/Kansai and the potential of industrial and cultural resources will become the engine of economic growth in the region. The urban brand of Osaka will become a new internationally competitive city brand. It is a very ambitious proposal aimed at raising [Osaka] to the next level,” it added.
“It is expected that the Osaka IR will contribute to the growth of the Osaka/Kansai economy and the [ramping] up of the tourism industry, as well as the introduction of tourism and economic promotion across Japan as a whole,” the prefecture concluded.
Osaka said it will now look to sign a Basic Agreement and prepare an area development plan, including the implementation of public hearings, between October 2021 and 4 January 2022, and from February to March 2022 will seek consent regarding the area development plan from the Osaka Prefectural Assembly and Osaka City Council. An application will then be made to the central government before the 28 April 2022 deadline.
Osaka is looking to develop a world-class integrated resort on Yumeshima, a 390-hectare man-made island located alongside Osaka Port and site of the 2025 World Expo.
The development is estimated to cost around US$9.1 billion with an opening date currently planned for sometime in the late 2020s. MGM CEO and President Bill Hornbuckle stated recently that he expects the company’s initial contribution to total no more than US$2.5 billion, likely spread over three years from 2024 to 2026. The remainder of the financing would presumably come from consortium partners and debt.
Source: GMB / Inside Asian Gaming
