Osaka IR starts additional open recruitment of businesses until April 6th.
The Nikkei Newspaper published an article where discussing the open recruitment for business looking to into Osaka’s integrated resort (IR) since the prefecture and city has set the guidlines.
We translated the Japanese article to English for our readers.
For the original Japanese article, click here.
On the 19th, Osaka Prefecture and Osaka city announced that they have finalized an “implementation policy” which summarizes the conditions required for integrated resort (IR) operators, including casinos which are aiming to attract casinos. The prefecture and city will start additional public offerings. Open recruitment application for businesses are accepted until April 6th. In February, the prefecture and city revised the draft implementation policy, allowing partial opening in the latter half of the 2020s and gradual development of exhibition facilities. The conditions, including the selection schedule, have changed significantly, and additional public offerings will be made from the perspective of “fairness.”
Only the joint group of MGM Resorts International and Orix is registered to participate in the Osaka IR. Regardless of whether or not there is a business operator that accepts additional public offerings, the proposal will be submitted around July, and the business operator will be then decided around September. With the consent of both the prefectural and city councils, businesses will apply to the national government for approval of the area development plan around April 2022. If certified, it is assumed that the business operator will start construction after FY2023.
What is IR?
IR (integrated resort) is a tourist facility which integrates casinos, an international conference hall, exhibition facilities, and accommodation facilities (hotels). The government plans to accept applications from local municipals aiming between October 2021 and April 2022, and will select up to three development areas from the candidate sites. The IR Implementation Law requires the completion of five core facilities together with the casino as a condition for opening. According to the law enforcement ordinance, (1) exhibition facilities are 20,000 square meters or more, and (2) accommodation facilities have a total guest room area of 100,000 square meters or more.
Prefectural and municipal governments have given consideration to businesses affected by the new coronavirus. In the implementation policy, the direction of seeking the “world’s highest level” scale, which exceeds the national standard, was not changed, however there will be an expectation of progression stipulated by the government. At the opening of exhibition facilities must be more than 20,000 square meters and 60,000 square meters within 15 years. Accommodation facilities need only to meet national standards when they open, and the standards required by prefectures and cities are set within the business period. Business period was set by the national government to be 35 years.
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