Osaka Thinks Big

Osaka, Japan, chosen to host the 2025 World Expo and in line to welcome one of the country’s first integrated resorts, is planning big upgrades in its transportation infrastructure. And since any IR in Osaka would be located on Yumeshima Island (l.), transportation improvements may include rail, bridges and even boats.

Osaka Thinks Big

Miyagi Prefecture also considers IR bid

Osaka City and Prefecture in Japan’s Kansai region has a lock on the 2025 World Expo and also hopes to host one of the country’s first integrated resorts with gaming. With those developments in mind, local governments are taking a serious look at the area’s transportation needs.

According to AGB Nippon, plans are in the works to extend railways to Yumeshima Island, site of the expo and presumed site of the IR, as well as expand regional roads and bridges from four to six lanes. But experts say those improvements may not be enough, and some are recommending boat links to prevent traffic gridlock at peak visitation times.

Yoshiyuki Yamaya, president of Kansai Airports, says the firm plans to invest JPY1 billion (US$910 million) to prepare Kansai International for the World Expo and the IR. “Looking forward to the 2025 Expo, we would like to strengthen the functions of Kansai International Airport,” Yamaya said. “While we usually invest about JPY20 billion (about $182 million) annually in the airport, we are contemplating an additional investment of close to JPY1 billion before 2025. If this is carried out effectively, it could result in an annual increase of 10 million passengers.”

Meanwhile, the Kansai Association of Corporate Executives has issued a six-point proposal for the anticipated Yumeshima IR. Members believe it would be optimal to open the IR before the World Expo, an accelerated plan that would require quick work on the part of national lawmakers, who must select the IR host sites, manage the bidding process for hopeful licensees; and complete all the ancillary work related to permits, environmental impact assessments, and public-private partnerships.

In addition to new rail lines, Kansai is also considering the efficacy of a high-speed Maglev line that would transport passengers “at blazing speeds in magnetically levitated cars,” reported the Japan Times. The publication reported that Kansai business leaders are lobbying locally and in Tokyo to ensure that the line, now under construction between Tokyo and Nagoya, will be extended to Osaka in time for the World Expo. If completed, the Maglev would cut travel time between Osaka and Tokyo by more than half, from two and a half hours to an hour.

“A Maglev train to Shin-Osaka Station means it will be a major transportation hub,” said JR West Vice President Nobutoshi Nikaido. Local leaders are also trying to cobble together funding that would extend the high-speed Hokuriku Shinkansen Line rail line to a terminal in Osaka.

Subway access to Yumeshima Island is also on the to-do list. But as the Times reported, “Who will pay for it and whether it will open in time for the 2025 Expo remained the top worries for business leaders at the summit.”

All parties agree that any IR in Osaka or elsewhere in Japan needs nongaming attractions to fully succeed—and also to meet the expectations of the federal government, which capped the gaming floor areas in IRs to just 3 percent or less of total resort space.

“In order to improve the city’s international brand, it’s necessary to have an integrated resort complex with a large-scale international conference hall and exhibition facilities. A committee should be established to invite international conferences and exhibitions to the facilities,” said Shinichi Fukushima, president of the Osaka International Convention Center.

Osaka Prefectural Governor Ichiro Matsui agrees, having stated, “We need world-class facilities not just for tourists but also to meet the requirements of business travelers. Providing for them will lead to an increase in inbound foreign visitor income.”

To that end, the Kansai Association also proposed a dedicated MICE Attraction and Creation Organization. According to the Sankei Shimbun, Osaka is thinking big. It will invest JPY930 billion (US$8.4 billion) to construct “the world’s greatest growth IR,” featuring Japan’s largest MICE facility covering more than 100,000 square meters (more than 1 million square feet). The MICE facility in Osaka reportedly would be bigger than Tokyo Big Site, currently the country’s largest exhibit space.

If and when an integrated resort is developed in Osaka, the city and prefecture predict it will draw some 25 million visitors per year and provide an economic benefit of JPY760 billion, according to a report cited by the Asahi Shimbun.

In related news, on February 5 Miyagi Prefecture in Tohoku expressed interest in hosting an IR and commissioned a feasibility study and, Wakayama Prefecture launched a search for an advisory firm that will help it through the IR licensing process.