Nagasaki seeks further clarification on gov’t’s decision to reject IR plan

After learning on December 27 that the Japan Tourism Agency had rejected Nagasaki’s request for an integrated resort (IR) including a casino, the prefecture in Nagasaki, Japan, has taken steps to get further information from the agency.

Nagasaki has provided the agency with a “questionnaire” in an effort to get more insight into the evaluation procedure.

Following an all-member meeting of the Nagasaki Prefectural Assembly, where Nagasaki Governor Kengo Oishi addressed seven assembly members’ worries about the implications of the central authorities’ rejection, this decision was made.

Four of the seven assembly members, according to sources, felt that Nagasaki should keep up its IR program and look for a chance to host an IR during any next application window that the national government would declare.

According to an official statement released by the prefecture of Nagasaki on Tuesday, “On January 12, the prefecture sent a questionnaire to the [Japan Tourism] agency regarding how they examined and evaluated the plan.”

According to the statement, the prefecture will thoroughly evaluate the systems it has put in place after the agency’s response. At that point, Nagasaki will choose whether to proceed with its IR plan or look into alternative possibilities.

In his discussion of the challenges associated with upholding the IR policy, Governor Oishi emphasized the significant financial, human, and material costs. The prefecture is proceeding cautiously while deciding how to proceed in the IR bidding process.

After announcing that Nagasaki’s IR plan was not approved, the Japan Tourism Agency said that the prefecture might reapply at a later date, provided the national cabinet issued a directive. However, the government did not provide specific details on the start date of a new application window.

Private sector participants in Nagasaki’s current investor relations plan include “Casinos Austria International Japan” and “Kyushu Resorts Japan and Advisors.” The Nagasaki IR program was expected to get JPY 438.3 billion, or around $2.96 billion, in investment.

Concerns over the long-term viability of the financial arrangements were sparked by the national authorities’ response, which prompted Nagasaki to enquire about the review procedure and look into potential future moves.

Original story by: GGRAsia