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Tomakomai City Integrated Resort (Ir) Feasibility Study・Research Report

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Tomakomai City Integrated Resort (Ir) Feasibility Study・Research Report TOMAKOMAI CITY INTEGRATED RESORT (IR) FEASIBILITY STUDY・RESEARCH REPORT EXECUTIVE SUMMARY Table of Contents 1. Overview of Tomakomai City and Necessity of IR 2. Overview of Global IR (Casino) Market 3. Concept of Tomakomai Style Integrate Resort 4. Condition of Infrastructure and Finance 5. Social Impacts of Gambling and Related Counter-Measures 6E6. Econom ic Impac ts 7. Legislation and Road Map 8. Anticipated Issues 1 1. Overview of Tomakomai City and Necessity of IR The state of Tomakomai City(1) Asahikawa city Sapporo city New Chitose AirportKushiro city Tomakomai city Hakodate city 2 1. Overview of Tomakomai City and Necessity of IR The state of Tomakomai City(2) The most accessible in Hokkaido ◆Smooth access domestically and internationally Key location for land, sea and air travel The largest industrially-concentrated city in Northern Japan ◆There are many in dus tr ia l compan ies suc h as paper, pulp and automobile companies Friendly city to nature and environment ◆Well harmonized with the natural environment such as forests, lakes and marshes 3 1. Overview of Tomakomai City and Necessity of IR The state of Tomakomai City(3) Over 65 Declining birth rate and rapidly （2014) agggpping population ・Declining working age population (15〜64) （2024) ・Increasing social welfare costs Changes in industrial structure ・Offshoring of manufacturing facilities ・Severe inter-corporate competition through IT Declining tax revenue and public/municipal investments Investments becoming difficult Concerns for poorer public services Source：Demographic trend of Tomakomai City(2014) – basic resident register population Tomakomai City 2015.2 4 1. Overview of Tomakomai City and Necessity of IR The state of Tomakomai City(4) Populilation tren dfd of Tomakikomai city 200,000 171,480 Declining birth rate and rapidly 168,197 163,538 157,749 43,841 49,161 50,385 50,440 agggpping population 150,000 ・Declining working age population (15〜64) 105,445 98,634 ・Increasing social welfare costs 100,000 94,776 90,717 50,000 Changes in industrial structure 22,194 20,402 18,377 16,592 ・Offshoring of manufacturing facilities 0 ・Severe inter-corporate competition 2015 2020 2025 2030 through IT Ylti(0Young population (0-14) Working age population (15-64) Elderly population (over 65) Declining tax revenue and public/municipal investments Investments becoming difficult Concerns for poorer public services Source：Tomakomai City Statistical document / National Institute of Population and Social Security Research 5 1. Overview of Tomakomai City and Necessity of IR What is IR(Integrated Resort )? (1) IR is a comprehensive, well-organized tourist facility which integrally develops tourism attractions such as a casino, hotel, MICE (Meetings, Incentives, Conferences and Exhibitions), restaurants, a shopping mall and entertainment facilities. The trend of tourists in Singapore Marina Bay Sands, Singapore Ten time Opening of million MBS/RWS Hotel Conference hall Theatre Casino Shopping mall Museum Event Plaza Casino floorシンガポール space マリーナ・ベイ・サンズ covers 3％ of International Source: ICCA, conference left-axis the entire IR floor space Source: UNWIO, Tourist right-axis The number of tourists has increased by 1.4 folds（10.4 million) Income from international tourism increased by 1.8 folds (Approximately JPY2 trillion ） <POINT> IRs have potential for comprehensive tourist promotion. It is not all about a casino.6 1. Overview of Tomakomai City and Necessity of IR What is IR(Integrated Resort )? (2) Hotel F&B MICE ※The legislation for introducing IR aimed at Casino tourism promotion is IR underway. Shopping Entertainment The IR will be constructed and operated by a private Others company. Expected Effects ((pTourist promotion and local p romotion） • Customer attraction resulting from synergies with existing resources for tourism Conducted overseas • Development of tourism attractions utilizing the customers and research to pporofitab tabtyoility of cas casoino examine the • Public infrastructure improvement utilizing the profitability of a casino situation of • Contribution to employment, the local economy and social IR/Casino in other gggygpovernmentsʼ budget by utilizing private investments countries Matter of Concern •Social impacts (gamble addiction, public disorder etc.） 7 1. Overview of Tomakomai City and Necessity of IR Tourism sector as a growing sector of the 21st century(1) High economic ripple effect to other industries It is estimated that the effect will range over several sectors of the local economy, as tourists consume in various sectors such as accommodation, food & beverage, public transport, enttitertainmen t, gift iftt, etc. Enables incorporating external demands Although there are no expectations for a large increase in domestic demand due to the declining birth rate and aging population , incorporating tourist demands from Asia, which are showing remarkable growth, is possible. The goal for 2020 of Hokkaido ¥122,128× 2mill people Unit price of tourism consumption (JPY) Foreign Citizens in Visitors to = ¥244.3 billion Item Visitors to Hokkaido Hokkaido Hokkaido Average household Transportation 3,313 18,674 39,307 consumption Accommodation 2,259 17,863 22,344 expenditure F&B 1,793 10,612 16,528 ¥229,572/Month・House Gift・Shopping 4,430 18,012 36,536 (¥2.75mill/year ・ House) Entrance・Facility 593 2, 416 3, 964 Usage Fees Equivalent to annual Other 882 2,092 3,448 consumption expenditure Total of 88,000 households 13,271 69,670 122,128 (Reference) Source: The nu mber of hou seholds in Unit price of tourism consumption: Tomakomai city is Report by the investigation committee for Hokkaido tourism industry economic effect, 2011, March 85,800 Average household consumption: （Source：Residential Basic Book Household research (2014, November) by the Statistic Bureau, Ministry of Internal Affairs and Communications 2014,1st, Jan.） 9 1. Overview of Tomakomai City and Necessity of IR Tourism sector as a growing sector of the 21st century (2) ・ According to a research by International Tourist International Tourism the UNWTO (The World Tourism OiiOrganization)h), the Arrivals Ranking Receipts Ranking demand of international tourism exceeded 10 billion 1st France 1st U.S.A USD139.6million 83.02million people in 2012 and has 2nd USAU.S.A 2nd Spain USD60.4million 69. 77million bhidbeen showing steady 3rd Spain 3rd France USD56.1million 60.66million growth, despite the 4th China 4th China USD51.7million 55.69million declining world economy. It 5th Italy 5th Macau USD51.6million 47.70million is expected that the 6th Turkey 6th Italy USD43.9million 37. 79million deman d w ill increase to 7th Germany 7th Thailand USD42.1million 31.54million 1.36billion and 1.81 billion 8th UK 8th Germany USD41.2million 31.17million in 2020 and 2030, 9th Russia 9th UK USD40.6million 28.36million respectively. 10th Thailand 10th Hong Kong USD38.9million 26. 55million ・The grow th is remar ka ble, … … 2,503万⼈ 2,503万⼈ particularly in the Asia- 2,503万⼈ Pacific region and the 24th Japan 21th Japan USD14.9million 10.36million annual growth is expected at5t 5-6%. Japan has abundant appeal to att ract t ouri st s f rom all over th e world Source: UNWTO Tourism Highlights 2014 Edition、no data of arriving tourists to France for 2013 was available 9 (figures for 2012 is indicated) 1. Overview of Tomakomai City and Necessity of IR Current situation and issues of tourism in Hokkaido Current Situation Issues Shrinking domestic market Attracting foreign tourists/enhancing resulilting from decli liining popu lat ion environmen tfiitifititt for inviting foreign tourists Gap between on-season and off- Development of tourism attractions with season low seasonal fluctuation Polishing tourist attractions /developing Concentration of tourists in central secondary transport access area of Hokkaido The number of tourists by quarter The number of tourists by region Million (Total number) 2500 Kushiro・ Nemuro Citizens in Hokkaido Tokachi 2000 6% Center of Okhotsk Visitors to Hokkaido 7% Hokkaido 1500 Foreign Visitors to Hokkaido 7% 1000 FY2013 Northern 16% 55% 500 Hokkaido 0 9% １Q 2Q 3Q 4Q Southern 10 Source：Research report by Hokkaido Hokkaido 1. Overview of Tomakomai City and Necessity of IR Current situation and issues of tourism in Tomakomai Actual number in 2013 Issues of tourism in Tomakomai city Tourists 1. 84million Despite being adjacent to the entrance Year on year rate of Hokkaido, it is a city to pass through ▲2.7% (not to stay) due to lack of facilities Foreign 22 thousand with lodging and att racti ve to ur ist routes. Tourists Year on year rate +256% Overnight The city has a strong image as an Tourists from tourists7% outside Hokkaido industrial region (factories and port) 30% and does not proactively promote its Tourists from nature and local specialties. Tourists Hokkaido Day trip 70% tourists have little motive to visit Tomakomai. 93% Many day trip tourists visit Tomakomai during The city is not making full use of the the summer season for sppgorts such as golf Attractive tourism resources include: neighboring tourism resources such as ①Utonai lake roadside rest area (452thousand), Nishiiburi, Higashiiburi and Hidaka. ②Northern horse park (245thousand), ③Puratto port market (218thousand) etc. Source: Number of tourists: Publicly published report by Hokkaido Issues of tourism in Tomakomai city: Report by Tomakomai 11 1. Overview of Tomakomai City and Necessity of IR Necessity for the introduction of IR Hokkaidoʼs Potentials Tomakomaiʼs Potentials Attractiveness as a tourist destination The transport access hub in Hokkaido ・Location which tourists want to visit: Develop international airports, international Ranked number one in Japan [1] ports and highways ・The number of foreign tourists visiting →Gateway to tourism attractions in Hokkaido: 1.15 million [2] Hokkaido ・The num ber o f tour is ts: 53. 1 m illion [2] Potentially large business region Brand power of Hokkaido ・30/60 min range population: 1.5/3 million ・The desire for visiting Hokkaido within the (60% of H okk ai do r esi den ts) Asian region is high, next to Tokyo and ・The number of passengers using Kyoto.
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