Fri, Jun 21, 8:28pm by Staff Writer
Japan’s Consul-General in Macau, Mitsuhiro Wada, says he doesn’t expect Macau and Japan to be in direct competition for customers once his home nation opens its first integrated resorts in coming years.
Asgam is reporting that the ambassador insists Japan can still learn from Macau’s accomplishments in running the biggest casino industry in the world.
Speaking at the launch of a new Japan Pavilion at Macau’s Tap Seac Gallery, Wada told the Macau Post Daily, “Japan is going to start the business of integrated resorts. Macau is very experience in this field and Japan should learn from Macau’s experience.”
However, he added that Japan “cannot follow Macau’s model” due to significant differences in customer demographics.
“We will create our business in a Japanese way which could be very different from Macau’s integrated resort business,” he said.
“In Macau, most of the customers are coming from the mainland and Hong Kong, but in Japan’s case, the majority of the guests will be Japanese. We also welcome tourists from all over the world, but the main customers would be Japanese people, so I don’t think there will be much competition between Macau and Japan.”
The Japanese city of Osaka is in the box seat to be the first to develop an integrated resort in the country, according to Forbes.
None of Japan’s other larger metropolitan areas have entered the competition for an integrated resort licence, so Osaka stands alone.
Under the licencing process, local jurisdictions will nominate a single consortium for the national government to consider for a licence.
It is now imperative for casino operators and their partners to be able to convince local authorities that they are their best choices.
As Osaka launches its selection process, expect extraordinary competition among at least a half-dozen of the biggest names in gaming, and in this beauty contest, second place won’t even get a bouquet.
“For a successful development, you need a number of things to align: a sufficient population base, including tourists, to feed customers, infrastructure and political support,” MGM Japan CEO Ed Bowers says.
“Osaka has consistently said it wanted integrated resorts. In all jurisdictions across the world, if you don’t get political support, it is extremely difficult for IR development to be successful,” he said.
In January, MGM declared as “Osaka First” strategy and in March, confirmed a partnership with Japanese financial services giant Orix.
The Tokyo-Yokohama metropolitan dwarfs other metropolitan areas with 37 million people, nearly 30 per cent of Japan’s 126 million residents.
Japan Consul-General predicts little competition between Macau and Japan casino industries https://t.co/e8NhADXQIB
— Topgoal Media TV (@Topgoal) June 21, 2019
But Tokyo remains preoccupied with next year’s Olympics and Yokohama has a festering rift between port operators opposing an integrated resort on Yamashita Pier, with some business leaders supporting an integrated resort.
Kansai region, including Osaka, Kobe, Kyoto and Wakayama has 19 million people, 15 per cent of Japan’s population.
The next largest metropolitan areas, centering on auto manufacturing hub Nagoya, with just over 9 million people is not expected to seek an integrated resort.
“We believe the major cities like Osaka offer the best opportunities for IRs to be developed on a large scale, similar to what we have developed in Macau,” Galaxy Entertainment Japan general manager Satoshi Okabe says.
Last week, Osaka announced it would start its Request for Concepts process, even before the national government has finished making the rules, aiming to choose its IR operator next year.
This follows Osaka Ishin no Kai (Osaka Restoration) winning last month’s elections for mayor and governor, with the goal of opening an IR on Yumeshma island before World Expo 2025.
Melco Resorts and Entertainment senior vice president Frederic Winckler called World Expo “an incredible launch platform” for an IR and praises Osaka’s “dynamic” business community.
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