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Taking a leaf from Singapore, the Japanese government is currently discussing laws that would allow Integrated Resorts (IRs) to operate in the country in time for the 2020 Olympics Games in Tokyo.
Notably, IRs are comprehensive tourist attractions that boasts casinos, hotels, restaurants, entertainment venues and facilities for Meetings, Incentives, Conferences, and Exhibitions (MICE) in just one convenient location.
According to CBRE, the Japanese Diet opened the IR Promotion Bill for discussion on 29 September in the hope of replicating Singapore’s success with its two Integrated Resorts, namely Genting’s Resorts World Sentosa (RWS) and Marina Bay Sands (MBS) operated by Las Vegas Sands.
“In 2010, when the two IRs opened [in Singapore], tourism revenues increased by 50 percent compared to the previous year, totalling S$18.93 billion. The rate of growth later slowed but has remained positive. Tourism revenues totalled S$23.47 billion in 2013, a figure 64 percent greater than the three-year average of S$14.3 billion before the IRs opened,” said the consultancy.
After the IRs opened, retail sales in Singapore rose by 12 percent, while hotel revenue per available room (RevPar) increased by 22 percent compared to three-year average in 2007 to 2009 before the Integrated Resorts were opened.
“Should IRs open in Tokyo and Osaka in time for the 2020 Olympics, assuming each city experiences a similar pace of growth as seen in Singapore in the number of foreign tourists, that would imply a five percent annual increase in foreign tourists, which is estimated to raise the tourism receipt to around 4.3 trillion yen, or one percent of GDP in 2013.”
If the Integrated Resorts in Tokyo and Osaka materialises, tourist arrivals in the country could increased by five percent annually after the IRs are opened. Starting from the estimated 19 million by 2020, tourist arrivals could hit 31 million in 2030.
CBRE added that if these numbers pan out, tourist spending could reach 4.3 trillion yen (S$47.62 billion) in 2030 from the estimated 2.6 trillion yen (S$2.88 billion) in 2020.
Image: Tokyo skyline (Source: Wikimedia Commons)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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