MGM Resorts Japan announced that it signed a conclusion of a basic agreement for area development of specified complex tourist facilities and preparation of area development plan for a planned integrated resort (IR) in Osaka, Yumeshima area.
MGM Resorts Japan Reveals Update Regarding Osaka IR
MGM Resorts Japan was established in September 2014 by MGM Resorts International with a goal to enter the IR market in the country. On Monday this week, MGM Resorts Japan revealed that its subsidiary Osaka IR is currently collaborating with the prefecture and the city in Osaka. Osaka IR was created by MGM Resorts Japan in collaboration with ORIX to operate the proposed IR in Osaka. Ultimately, Osaka IR is planning to apply with the national government for certification of the area development plan.
“We are pleased to inform you that we have signed the “Basic Agreement for the Development of Areas for Specified Complex Tourist Facilities.”MGM Resorts Japan
According to MGM Resorts Japan, Osaka IR has signed a “Basic Agreement for the Development of Areas for Specified Complex Tourist Facilities.” Additionally, in collaboration with the prefecture and city in Osaka, Osaka IR created a development plan for a specific complex tourist facility located in the Osaka / Yumeshima area.
“Through this project, Japan MGM Resorts and ORIX would like to contribute to the sustainable growth of tourism and the economy of the Osaka / Kansai region and, by extension, the country.”MGM Resorts Japan
The new project has an approximate price tag of JPY 1.08 trillion ($9.4 billion). This would make the project the single most valuable investment within the gaming and hospitality industry. What is more, the resort is expected to substantially boost the tourism and the economy of the Osaka, Kansai region. The IR is expected to even impact positively the tourism and economy of the whole country as well.
The IR Plan May Meet Resistance
The recent update comes at a time when residents in Osaka are preparing to gather signatures for a referendum regarding the planned IR. Only recently, the media outlet Nikkei revealed that residents in the area plan to gather signatures starting from March 25. The plan is to collect approximately 200,000 signatures from residents until May 25. If that happens, a referendum on the topic may be launched.
This is not the first time residents opposed an IR project. A similar referendum was initiated in Wakayama prefecture. Late last month, the referendum was rejected, which has put an end to those efforts for the moment.