Japan has unveiled a massive new Integrated Resorts (IR) project expected to completely alter the nation’s entertainment industry. The 10 billion-dollar project promises to be a game changer in the regional gaming sector, given Japan’s large gaming market and tourism draw. As of April 2023, MGM Resorts International had obtained all the necessary certifications to begin the IR project on a man-made island in Osaka, Yumeshima. The Osaka IR implementation agreement signed by Osaka IR Corporation, MGM, and ORIX specifies that the resort will open in 2030, following the island’s hosting of the World Expo 2025.
Meanwhile, the world eagerly awaits a new era in entertainment, hospitality, and travel. Drawing inspiration from successful models worldwide, like South Africa’s renowned casino resorts, the Japanese IR seeks to redefine luxury and leisure by providing a distinct blend of gaming, lodging, eating, and entertainment experiences.

South Africa’s Casino Resorts: A Model for Osaka IR

South Africa has distinguished itself as a distinctive tourism destination, particularly for casino enthusiasts, thanks to its all-inclusive casino resorts strategically positioned on the outskirts of central entertainment districts. Such resorts are lavishly furnished with leading hotel brands, world-class restaurants, huge retail malls, family recreation facilities, pubs, and dedicated casino gaming floors. The main aim is to centralize everything a tourist would require in one place with multiple indoor and outdoor entertainment options. 

South African casino resorts are designed with fascinating themes and decor to make your stay more immersive. Their casino game selection is also extensive, including both old and current games, as well as a variety of slot genres. The most notable casino resorts in South Africa include the well-known Sun City near Pilanesberg Game Reserve, Gold Reef City, Wild Coast Sun Resort and Casino, Emperor’s Palace, and Montecasino. Osaka IR will replicate the appeal of huge South African casino resorts that draw millions of tourists by locating on the outskirts of Osaka on the artificial island of Yumeshima. When completed, Osaka IR is expected to attract more than 20 million people per year.

Major Hotel Brands are already Invested in Osaka IR

The huge project has already piqued the interest of international hotel companies. Typically, casino resorts contain the most extravagant and towering hotels, and Osaka pledges to create an architectural masterpiece. Ascott Limited, owned by CapitaLand Investments, is one of the major hotel firms considering investing in the huge Osaka IR project. Beh Siew Kim, the group’s Chief Financial & Sustainability Officer, released this information in a press briefing. She said, “Building an integrated resort in Osaka will definitely increase the demand for hotels in the area, and we’ll look into the potential investment opportunities that come with it.”
The Osaka IR implementation agreement includes the establishment of a variety of housing facilities, including the MISIIB Hotel, MGM Villas, and MGM Osaka. All of these initiatives will add up to 2500 hotel rooms and a variety of food and beverage and fine dining alternatives. The resort will also have several banquet halls for group events, fitness centers, and therapeutic centers like spas.

Financial Projections for Osaka IR

The 10 billion dollar investment, one of MGM Resorts’ most expensive ventures, is expected to yield a significant return on investment given the resort’s advantageous location in a metropolis with a population of 20 million. The initiative forecasts that its capital returns will initially be mostly from high spenders in the local market, accounting for 80%, with 20% coming from foreigners. Because Japanese laws restrict domestic gambling activities, locals who want to use the casino facilities must pay a fee of 6,000 Yen. Japanese residents who use this option can use the facilities up to 10 times per month.

If comparable MGM resorts in Asia are used as a benchmark, such as Macau IR, licensed gambling operations account for 90 percent of Macau’s revenue. Osaka intends to strike a balance between casino gaming and other leisure activities. This has the advantage of attracting a varied range of tourists and maintaining those numbers throughout the year, hence sustainability.

Conclusion

Japan is taking strategic measures to strengthen its tourist industry following the epidemic, and constructing its first IR resort is a clever initiative. By borrowing successful elements from renowned land-based casino resorts in South Africa and attracting major hotel brands, Osaka IR promises a unique and luxurious experience for visitors worldwide. With its strategic location, cutting-edge technology, and a blend of traditional and modern entertainment, Osaka IR is poised to redefine the local leisure and tourism industry. The Osaka IR is more than just a casino resort but a symbol of progress and harmony.