The long-awaited and repeatedly delayed integrated resort in Japan is finally set to begin construction in earnest this April
Japan has given the go-ahead to three integrated casino resorts under the mandate of late Prime Minister Shinzo Abe, who approved the projects as part of the country’s strategy to boost tourism.
MGM Osaka Finally Set to Begin Construction
Fast forward to 2024, and construction has not yet started on any of the projects, and only a single one has been approved – the $8-billion MGM Osaka which is spearheaded by MGM Resorts International and Orix Corporation who work under the Osaka IR Corporation in the country.
MGM Osaka is the first and so far, only approved project which is expected to be built in time for 2030, a date that far exceeded the original intention for integrated resorts in Japan, with the first project originally thought to be opening doors in 2025.
Instead, MGM Osaka will only see the beginning of construction at the time, and interest in other projects in the country has already dwindled, the result of an uneasy geopolitical climate, weakening yen, and skittish foreign investors.
Construction will begin on the artificial island of Yumeshima which has been in development since 2023.
The process took a long time before the man-made island was deemed robust enough to actually host the sprawling MGM Osaka, which will offer 2,500 hotel rooms, 2,000 slot machines, 200 table games, and a lot more, all of which is designed to give Japan its first taste of Las Vegas “wow” DNA, argues MGM Resorts International President and CEO Bill Hornbuckle.
There is more, of course, including a 3,500-seat theater, fitness centers, a spa center, multiple dining and dining options, as well as meeting spaces and a convention center.
MGM is not a majority owner in the consortium that is spearheading the project but rather has an equal stake of 42.5% with Orix. The remainder of the share is held by various local companies, with an opening date set tentatively for 2030.
Giving an Old Economic Project a New Lease of Life
As for Yumeshima, the island was not developed from scratch. The islet was planned back in the 1980s as the prefecture of Osaka was hoping to boost its economic output by developing three man-made islands that would be used for special events – such as the Olympics.
Most of these plans have been mothballed or came short of their original ambition and have mostly been disused or failed to pack any meaningful economic punch. The arrival of MGM Osaka could change that.
