On May 1, the Wakayama IR Promotion Council met in Wakayama City, Japan to reassert that an integrated resort in the region could revive local tourism and industry in the wake of the coronavirus pandemic.
“The post-Covid economic environment will be harsh without IR,” said Council Chairman Masaaki Shirako. “We want to win the bid at all costs to stimulate the economy.”
But on May 13, one of just two bidders for an IR in the prefecture announced it was backing out of the RFP process. Suncity Holdings Japan, linked to privately-held Macau junket investor Suncity Group, noted that Japan’s IR certification process was taking “much longer than expected,” and said it factored into the firm’s decision to withdraw.
That leaves Wakayama with just one bidder—Clairvest Neem Ventures—in what was once expected to be an all-out bidding war for one of the trio of licenses. Osaka, too, has only one suitor in the running, MGM Resorts International.
The Japanese government will license three IRs during Phase 1 of the new industry, with more to come in seven years based on the success of those entries. For many years, Japan was considered the “Holy Grail” of Asia and the next major market. But much of the excitement about the budding industry receded when the pandemic struck, and many global operators have tabled their plans to participate.
According to GGRAsia, Wakayama announced in January that it would select its private-sector partner for its IR by spring of this year and open its IR around “spring 2026.”
Local authorities interested in hosting a casino resort must first select a commercial partner, and then apply to the national government for the right to host such a facility. Up to three resorts will be permitted in Japan under the legalization framework.
A statement on the website of Suncity Holdings Japan quoted boss Alvin Chau as saying the decision to exit Wakayama was made after “careful consideration” and was also due to the “enormous impact” of Covid-19 on the casino industry. He noted that the “uncertainty” is likely to affect the world “for a long time.”
Chau expressed “sincere gratitude” for the “kindness” shown by the people of Wakayama during Suncity’s dealings with the prefecture.
Previously, the IR Promotion Council, comprised of 100 local companies who support an IR bid, had adopted a resolution stating, “We urge the prefecture to make a plan that fully respects the opinions of the selection committee and make decisions for the citizens that promise stable financial management of Wakayama.”
Secretary-General Katsuaki Shirako declared, “When considering the era after the coronavirus, Wakayama will have a very difficult economic environment if the IR does not come.”
It cannot help that even Clairvest does not seem fully engaged in the process. A year ago, Clairvest told Asia Gaming Brief that it would serve as the “quarterback” for an IR consortium in Wakayama. And though it submitted its proposals to the prefectural government, according to AGB, the company has otherwise been “publicly silent.”
