As MGM Resorts International awaits the go-ahead to break ground on an integrated resort (IR) project in Osaka, Japan, the prefecture is also preparing to host the 2025 World Expo. With both based on Yumeshima Island in Osaka Bay, officials are concerned the dual projects will cause serious delays.
According to the Asahi Shimbun, last fall Yoichi Miyamoto, chairman of the Japan Federation of Construction Contractors, told expo organizers that the expo pavilions won’t be ready for the international event. “At present, the situation is very severe,” Miyamoto said. “Even if construction begins this year, that still means we only have one year, a very difficult prospect.”
Making matters worse are labor shortages in the construction industry and higher costs of construction materials.
An editorial in the Shimbun says, “People involved fear that the two massive construction projects, if carried out simultaneously, could only put an additional strain on the construction industry, which is already struggling with a manpower crunch and soaring costs. They are also concerned that heavy traffic of trucks and other construction vehicles could cause serious traffic jams in the areas around the island.”
The $10 billion IR, to be developed by MGM and Orix Corp., was originally targeted to open in time for the World Expo. The pandemic unraveled that plan, and the opening was pushed back to 2029. Earlier this year, MGM Resorts CEO Bill Hornbuckle acknowledged that 2030 a is more realistic timeframe.
So far, it is the only IR approved by the Japanese government. A second proposal from Nagasaki is still under consideration. A total of three IR licenses were made available when the parliament approved resorts with gaming in late 2016.
