Osaka IR project secures US$3.4bn loan

The MGM-Orix consortium has secured a loan from a group of Japanese banks.

Japan.- MGM Resorts and Orix Corp have secured a US$3.4bn loan from two Japanese banks, Mitsubishi UFJ Financial and Sumitomo Mitsui Banking, for the development of the US$8.2bn MGM Osaka, the first integrated resort (IR) in Japan. The MGM-Orix consortium was selected as IR partner by the Osaka Prefecture in September 2021. Each company holds 42.5 per cent stake.

The IR, slated to open in 2030, is to feature approximately 2,500 hotel rooms, along with facilities for meetings, incentives, conferences, and exhibitions (MICE). The prefectural government had envisaged an inauguration in the autumn or winter of 2029. However, there was a delay in getting approval from central government.

Preparatory work began last December after concrete was poured into the ground on Yumeshima, an artificial island in Osaka Bay where the IR will be built. The IR is anticipated to generate annual revenue of JPY520bn, of which about 80 per cent is expected to come from the casino. About 20 million people a year are expected to visit, including 6 million visitors from abroad, generating sales of JPY520bn annually, with JPY420bn coming from gambling revenue.

Osaka considers fixed fee for foreign visitors to mitigate overtourism

Osaka Prefecture is exploring the possibility of implementing a fixed fee for foreign visitors to address concerns related to overtourism. Governor Hirofumi Yoshimura has suggested that the fee collection could coincide with the start of the 2025 World Exposition.

The fee would generate funds for initiatives aimed at managing overtourism. Currently, there are no such specific taxation schemes on tourists in place, according to the Ministry of Internal Affairs and Communication. According to Kyodo News, governor Yoshimura emphasised the importance of ensuring a balance between tourism promotion and the preservation of local communities.