The prefecture survey said that the “excessive investment” of JPY 330 billion (US$3 billion) could take “20 to 46 years” to recover
Japan.- The race for one of the three integrated resorts licenses up for grabs in Japan has a new entrant in the form of the Miyagi prefecture.
The region has been looking into the viability of bidding for an IR licence and has released a report exploring the possibility of an IR bid.
It will take the decision to move forwards or not between February and March, when the national government will determine its Basic Policy.
One of the issues raising doubt is the big investment the city will have to make and how long will take to recover the money. The prefecture survey said that the “excessive investment” of JPY 330 billion (US$3 billion) could take “20 to 46 years” to get back.
Miyagi prefecture is the economic heart of the Tohoku region, a place that was affected by the Great Tohoku Earthquake in 2011. The candidate site is near Sendai Airport, a major transportation hub in the area and the IR would be expected to open in 2025.
Although the investment of JPY 330 billion (US$3 billion) seems excessive, the survey expected 2.85 million to 5.39 million visitors per year. The economic ripple effect is estimated at JPY 510 billion (US$4.6 billion) for the facility development and JPY 150 billion (US$1.4 billion) annually for facility operations.
Miyagi prefecture is the only prefecture/government designated city considering applying for an IR in the Hokkaido and Tohoku regions following Hokkaido’s recent decision to withdraw its plans for an IR bid.