Japan Travel Integrated Resorts

In July 2018, the Government of Japan passed legislation allowing Integrated Resorts (IRs), mixed-use properties including hotels, entertainment and convention venues, and leisure facilities anchored by a casino, to operate.  The Government of Japan expects IRs will attract inbound tourists to underserved destinations, and ultimately help boost surrounding local economies.

In 2020, the Japanese government announced basic guidelines and rules for IR operator and location selection.  A maximum of three localities would be selected to host IRs (with the next application period opening in seven years), and any local governments interested in applying must appoint an IR operator to develop the facility, produce financial plans and gambling addiction prevention measures, and submit a formal application to the central government. Integrated Resorts would be required to include convention and exhibition spaces that can also be utilized for concerts and sporting events; facilities that are equipped to host Japanese traditional, cultural, and artistic performances; and accommodations with reliable and efficient transportation systems; as well as other tourist attractions such as shopping malls. The total floor area of the casino operating area is limited to 3% or less of the entire IR.

In the first round of bidding, several locations were mentioned as possible sites for the first IRs, such as Hokkaido, Tokyo, Yokohama, Osaka, Wakayama, and Nagasaki.  Subsequently, Hokkaido, Yokohama, and Wakayama announced that they would not pursue the IR opportunity at this time.  In April 2022, Osaka and Nagasaki applied to host IRs, and on April 14, 2023, the Japanese government approved Osaka as Japan’s first host of an IR. The Osaka prefectural and city government plan to open the IR in early 2030 on the artificial island, Yumeshima, in Osaka Bay.  The resort will be developed in partnership with MGM Resorts International and ORIX Corporation, who will act as IR operators and project leaders.  According to Osaka prefecture, the resort is expected to attract around 20 million visitors annually and bring ¥1.14 trillion ($8.1 billion) in annual economic benefits to Western Japan.

Because there are still two open slots for localities to host IRs in this inaugural application period, there is a possibility that the Japanese government will consider additional applications without waiting the seven-year period to open a new application window.

For more information about Japanese travel and tourism and IR, please contact the U.S. Commercial Service Japan at Office.Tokyo@trade.gov / Office.Osaka-Kobe@trade.gov or visit the U.S. Commercial Service Japan Website: https://www.trade.gov/japan.