Osaka IR: MGM Resorts reveal plans following bid approval

MGM Resorts and ORIX plan to incorporate 2,500 hotel rooms between three hotel brands, 730 thousand square feet of MICE space and tourist amenities to exhibit the finest of Osaka and Japan

Following the green light by the Osaka prefecture and city that their preferred IR partner had been picked, the plans were published by MGM and ORIX Corp.

Publishing a press release of their own, MGM explained that the IR to be developed on Osaka’s man-made Yumeshima Island alongside Osaka Port will be “designed to help establish Japan as a top global tourist destination, with Osaka serving as an internationally celebrated city for international business, travel and world-class amenities and entertainment.”

“The company has had a full-time development team in Japan for more than seven years, engaging with Japan’s business communities, immersing in Japanese culture and laying the foundation for a project that embodies Japan’s unique history and heritage.”

The three hotels at the IR,?MGM Osaka, MGM Villas and MUSUBI Hotel,?include various food and drink amenities, retail areas, spa facilities, exercise and banquet spaces.

The conference space available?will have the?capacity to accommodate more than 6,000 guests and 330,000 square feet of exhibition area, totally?about 400,000 square feet, including an?Innovation Laboratory. Up to 3,500 people?guests can be hosted?at Yumeshima Theatre.

Finally, the IR will enable the establishment of a “Showcase of Japanese Tourism”?plan to provide a gateway for broader tourism in Japan in the region around the resort, including the Kansai Tourism Centre, the Garden Theater, the Japan Food Pavilion and the Kansai Art & Culture Museum.

They announced a project cost of about $10 billion with 15,000 employees and 20,000 visitors per year.

“It is an honor to be selected as Osaka’s partner in developing an integrated resort,” said MGM Resorts CEO and President Bill Hornbuckle.

“I commend the city in undertaking a comprehensive and thoughtful process to meet its goal of developing a world-class integrated resort in Osaka. We will work closely with prefectural/city municipal governments to deliver an iconic, uniquely Japanese destination warranting Osaka’s selection as home to one of Japan’s first integrated resorts.

“Nowhere is the future of tourism and hospitality more exciting than Japan, and Osaka is the perfect location for that future to begin. We couldn’t be more excited for the opportunity to help enhance and grow Osaka’s reputation as a world-class destination and gateway for the world to the wonders and rich history of Japan.”

Osaka’s approval

The Osaka Prefecture’s IR Evaluation Committee provided MGM and ORIX with a total score of 788.5 out of a possible 1,000 points under its RFP scoring system, with the prefecture and the city later determining that the consortium was qualified as an integrated resort partner.

“Currently, the global expansion of the coronavirus pandemic is having a serious impact on socio-economic and tourism-related industries, but the proposal from the MGM/ORIX consortium shows a deep understanding of the purpose of this project,” Osaka said in announcing the results.

“Looking ahead to post-corona, the realization of a growth-type IR that makes use of the tourist attractions of Osaka/Kansai and the potential of industrial and cultural resources will become the engine of economic growth in Osaka/Kansai. The urban brand of Osaka will become a new internationally competitive city brand. It is a very ambitious proposal aimed at raising [Osaka] to the next level.

“In the future, we will steadily proceed with the project in full cooperation between Osaka Prefecture, Osaka city and related parties to … form an international tourism base in Yumeshima and revitalize the Osaka Bay area.

“It is expected that the Osaka IR will contribute to the growth of the Osaka/Kansai economy and the [ramping] up of the tourism industry, as well as the introduction of tourism and economic promotion across Japan as a whole.”

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