Financial concerns behind Nagasaki refusal

A proposal to develop an integrated resort in Nagasaki in south-west 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.

Yesterday the Japanese tourism ministry rejected the proposal over financing concerns, according to media reports.

Nagasaki Prefecture had planned to cover 60 per cent of the initial investment of around JPY440bn (US$3.1bn) 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.

Estimates indicated that the project in Nagasaki at the Dutch-themed Huis Ten Bosch seaside resort would draw 8.4 million visitors annually, bringing $2.3bn) in economic benefits to the south-western 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.

Source: Asia Gaming Brief