Wakayama Lays Out Final Plans for IR, Expects Huge Financial Windfall
Posted on: March 29, 2022, 06:31h.
Last updated on: March 29, 2022, 01:55h.
Less than a month before the submission of final integrated resort projects to the Japanese government, Wakayama has its plans ready. The prefecture is positive that the Wakayama Marina City casino property will be a huge financial success.
There’s less than a month to go before the presentations of planned IR projects in Japan. Wakayama has been working overtime to put its vision together before the deadline. It just published its regional development plan, according to Inside Asian Gaming. The plan details how the IR may look, who will be involved, and how it will impact the community.
The plan is the result of a large collaborative effort. Not only did the government and casino representatives put the puzzle together, but so did local residents. They provided input that helped shape the final project.
Clairvest Neem Ventures and Caesars Entertainment are still going to take the lead. Additionally, Wakayama has provided more details on other investors that will participate.
Among them are Nishimatsu Construction, Cantor Fitzgerald, Global Gaming Asset Management, Hanwha Investment & Securities Co. Ltd, Idreamsky Technologies Holdings Ltd, ESV5 Esports Company, GW Investment Group, Zlony Holdings, and NFKing Production Ltd.
If Wakayama receives approval to move forward with its IR, which could come about a year after the submission of projects, the prefecture already has a time frame in place for the first phase of the launch. The casino and certain other amenities will open simultaneously sometime in the fall of 2027.
The last steps in Wakayama’s process are to receive final approvals from local officials and the prefectural assembly. Once those are in place, the prefecture will be completely ready to forward its project to Japan’s national IR development team.
Wakayama is one of the top three potential hosts for integrated resorts (IR) in Japan, alongside Osaka and Nagasaki. The prefecture has been diligently working to finalize how its potential project may look ahead of the submission deadline of April 28.
Only a maximum of three IRs are allowed in this first phase of the launch, but Japan can also approve just one or two, or even none. Wakayama wants to make sure it cannot be left out and is almost ready to present its project.
Huge Windfall for Local Communities
Wakayama has major ambitions for its project but is confident that its numbers are realistic. Within three years, the IR will receive around JPY262.1 billion (US$2.1 billion) in direct revenue. The IR will, at the same time, provide JPY353.4 billion (US$2.9 billion) to Wakayama and JPY545.2 billion (US$4.4 billion) to the Japanese national economy.
Tax revenue will increase as well. Wakayama estimates an additional tax contribution of JPY41.9 billion (US$338 million) to the prefecture and JPY67.8 billion (US$547 million) in national taxes by 2030.
Wakayama predicts that each foreign visitor will be worth around JPY171,147 (US$1,380) per trip. This is apart from the gambling spending, with the prefecture hoping to attract a lot of high-end tourists from all parts of the globe.
The IR has grown somewhat since its earlier renditions. Now, the casino floor will measure 55,367 square meters (roughly 13.6 acres), 8,867 (95,443 square feet) more than before. However, the gaming area went from 19,857 square meters (213,738 square feet) to 19,643 (211,435). This is approximately 2.8% of the IR.
There will be more hotel rooms and MICE (meetings, incentives, conventions and exhibitions) space as well. Wakayama estimates 2,652 keys – 98 more than before – and the event space will accommodate 9,000. That’s 3,000 more than previously planned. The first step, though, is to receive approval.
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