The list of Japanese regions battling for a coveted spot for the development of casino resorts ranges from Osaka to Hokkaido. Add Mickey Mouse’s neighborhood to the possibilities.
Chiba, a prefecture on the outskirts of Tokyo that is home to Disneyland, is gaining attention, with proponents citing the area’s convention centers and Japan’s largest airport as selling points. While the area’s supporters, mostly a group of small local businesses, say strong resident support gives it an edge over high-profile destinations such as Yokohama, the local government has yet to come on board.
Chiba would join many other communities across Japan jockeying for position alongside operators such as MGM Resorts International and Las Vegas Sands Corp. as the nation inches toward legalizing casino gambling. The Japanese parliament is currently discussing a casino implementation bill, which will allow for three cities to host integrated resorts. Analysts estimate the industry could be worth as much as USD25 billion.
The process has a long way to go, and it’s too early to gauge which regions will be chosen. Casino operators, likely accompanied by a coalition of Japanese partners, must first win endorsement of a regional government. They then present a joint proposal to the central authorities to be considered for a license.
Osaka is among the early favorites to win a spot. The governor of the prefecture and the city mayor are actively pushing to bring an integrated resort to the city. Hokkaido and Nagasaki are also contenders with proactive local governments.
The lack of such backing is a major hurdle for the Chiba effort. While the city assembly in 2013 passed a resolution promoting integrated resorts in the area, its mayor hasn’t yet made his position clear. A Chiba city representative said the government is doing research on integrated resorts from a neutral standpoint.
“The problem about Chiba is that it’s not clear what the local administration wants to do,” said Toru Mihara, a professor at the Osaka University of Commerce. “Chiba’s rivals will be cities around Tokyo. No one has officially raised their hand yet, but they will make their position clearer when a casino implementation bill passes.”
The backing of local residents could be a significant factor in a country where two-thirds of citizens oppose gambling because of the social impact. Yokohama’s mayor was pushing for a resort, but backed away because many voters didn’t support gambling.
The main advocate for Chiba is a coalition formed a year ago by the heads of several local companies representing industries from health care to design. Their ultimate plan is to build a 534 thousand-square-meter (5.7 million-square-foot) floating island offshore that is accessible to luxury cruise ships. Ikuo Kantake, president of the coalition, said the project would cost 64 billion yen ($587 million) and take two years to build.
The proponents see a natural synergy with Tokyo Disneyland in attracting tourists. But don’t read anything into the group’s provisional name: The Future of Chiba MICE-IR. MICE is an industry acronym for meetings, incentives, conventions and exhibitions, and has no connection with Mickey or Minnie. Maiko Takahashi, Bloomberg
No Comments