Nagasaki gov expresses surprise, disappointment over IR plan rejection

Kengo Oishi, the governor of the prefecture of Nagasaki in Japan, expressed shock and confusion at the national authorities’ refusal to approve the Integrated Resort (IR) District Development Plan for a tourism complex that includes a casino in Nagasaki.

Declaring that Nagasaki’s proposal did not meet the necessary requirements outlined under Japan’s national basic policy on IRs, the Japan Tourism Agency issued the refusal.

Governor Oishi voiced his dissatisfaction and said that an IR may have served as a spur for regional revitalization and enhanced the Kyushu region’s economy. The necessity of proving that a project could support local economic regeneration had been emphasized by the federal government.

The Japan Tourism Agency said that it was concerned about the financial stability of Nagasaki’s proposed IR and that there was not enough evidence to support it. Additionally, the agency declared that guarantee letters sent by potential borrowers or investors were not equivalent to or legally binding. Moreover, from the time of filing, there have been significant changes to the parties involved in the plan.

The private sector partners for the IR project have been chosen by the IR Promotion Division of Nagasaki Prefecture, and they are “Casinos Austria International Japan” and “Kyushu Resorts Japan and advisors.” The prefecture vowed to look into the statement and pressed the national government for an explanation. Additionally, the local administration pledged to use all available resources to inform the public of the decision.

The Nagasaki IR project sought investment of JPY438.3 billion (US$3.10 billion) and was planned on land close to Sasebo’s Huis Ten Bosch theme park. Among the project’s financial arrangers were Cantor Fitzgerald Securities Japan Co Ltd, CBRE, and Credit Suisse AG. As per Governor Oishi’s remarks, the prefecture is anticipated to have further discussions and seek for clarification on the decision.

Original story by: GGRAsia