A proposal to develop an integrated resort in Nagasaki in southeast Japan was rejected by the country’s administration due to financing concerns.
The Nagasaki IR proposal was led by Casinos Austria as part of a consortium called Kyushu Resorts Japan and has been under review by the government since April, 2022.
This Wednesday, the Japanese tourism ministry rejected the proposal over financing concerns, according to media reports.
Nagasaki Prefecture had planned to cover 60 percent of the initial investment of around JPY440 billion ($3.1 billion) through loans from financial institutions, however, Swiss financial giant Credit Suisse, which was involved in financing the resort, fell into a management crisis and was acquired by UBS Group AG.
Estimates indicated that the project in Nagasaki at the Dutch-themed Huis Ten Bosch seaside resort would draw 8.4 million visitors annually, bringing JPY330 billion ($2.3 billion) in economic benefits to the southwestern Japan region.
The red light on the project effectively stopped the possibility of a second IR in the country, after the construction of Japan’s first casino resort in Osaka was recently approved.
Japanese authorities recently approved the construction of an IR on Yumeshima, an artificial island in Osaka Bay. The casino resort is expected to attract about 20 million visitors annually and bring JPY1.14 trillion ($7.9 billion) in annual economic benefits to the region.
The project’s total cost is estimated at JPY1.27 trillion ($8.9 billion), with the resort slated to open around the fall of 2030.
