Macau to face competition from future Osaka IR, analysts say
Macau’s gaming industry is expected to face competition from Japan’s first integrated resort, which is set to open in Osaka in 2029.
Macau.- Zeng Zhonglu, a professor at the Centre for Gaming and Tourism Studies at the Macau Polytechnic Institute, has warned that the city’s gaming industry could face competition from integrated resorts in Japan. His warning comes after Japan approved Osaka’s casino resort plans.
Zhonglu warned that Japan is a rising potential market with strong interest and demand for gambling. Japan’s domestic gambling industry also holds immense potential with its sophisticated tourism industry and fully-equipped tourist sites.
Despite the potential for competition, the gaming scholar believes that Macau’s gaming industry is continuing to develop and innovate, diversifying into non-gaming sectors as designated by the local government. The industry is also reducing the role of the gaming sector in the economy to address the issue of dependence on one industry and enhance market competitiveness.
The number of visitors to Macau has recovered to 70 per cent of pre-pandemic levels, and the city is the preferred short-haul destination for tourists from Hong Kong and mainland China. Macau still holds unique geographic and cultural advantages that will continue to draw in visitors, noted the professor.
However, Osaka is now set to open Japan’s first casino resort on the artificial island of Yumeshima in Osaka Bay in the autumn or winter of 2029. Osaka bid to host an integrated resort with MGM Resorts International and ORIX as its IR partner. MGM-Orix has proposed to invest JPY1.08tn (US$8.38bn).
