Hong Kong-listed integrated resort developer and operator Melco Resorts & Entertainment unveiled on Wednesday a “Yokohama First” strategy for its planned entry into Japan’s nascent casino market, meaning that it would pursue development opportunities in the City of Yokohama.
The Mayor of Yokohama, Fumiko Hayashi, announced last month that her city would participate in the race for hosting one of Japan’s first three integrated resorts with dedicated casino gambling floors.
The top official of the country’s second largest city said in August that “they must look to Yokohama’s future, the 20 to 30 years ahead” and that in order to “achieve growth and development, we need an IR.”
Melco has previously demonstrated strong interest in bringing integrated resort experience to Osaka. Earlier this year, the company presented a concept plan for a luxury complex on Osaka’s man-made Yumeshima island.
The company said in a Wednesday statement announcing its Yokohama plans that it would no longer pursue a gaming license for Osaka and would focus its attention on Yokohama instead. Of Yokohama, the company said that it has “convenient location, communication links, vibrancy and pioneering spirit” that make it “an ideal candidate for a large-scale development designed specifically for premium international tourists.”
Melco is the second large hotel and casino developer to drop Osaka from its Japan expansion plans. Last month, Las Vegas Sands announced that it would no longer pursue development opportunities in Osaka and that it has set sights on Yokohama and Tokyo.
Yokohama First
While Melco has long favored Osaka as the potential host of its integrated resort, hints that the company has developed second thoughts have been surfacing for the greater part of the year. The company participated in Yokohama’s request for information process earlier this year.
City officials tested the waters before further committing to the casino hosts race with the launch of the RFI process. There were 12 companies, both domestic and international, to express interest in developing a resort in Yokohama.
Melco recently announced that it would open an office in Yokohama, a move that further demonstrated its strong interest in the city. The company said Wednesday that it has secured a space in the Minato Mirai area and will open the office shortly.
Last month, Melco secured a long-term partnership with local football club Yokohama F Marinos. As part of that deal, the company would participate in different local events along with team members and managers.
Of their strengthening commitment to Yokohama, Melco Chairman and CEO Lawrence Ho said that their “Yokohama First” strategy means “the incredible team of experts and talents we have assembled will focus on bringing to Yokohama the best IR the world has ever seen.”
The executive added that their team “is well positioned to contribute to Yokohama’s future and to support the community in its ambition to become the global tourism destination.”
Mr. Ho thanked personally to the government of Osaka for the “collaborative discussions” they have had over the years. The company also informed its Osaka partners that it would no longer pursue a permission to develop an integrated resort in the city.
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