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Published Date: 2014/05/20

Survey on Domestic and International Business Perceptions of Japan's Integrated Resort (JIR) Over 70% in Japan Support IR Introduction

In response to the casino promotion bill being submitted to the Diet, Dentsu Inc. collaborated with Nikkei BP to conduct an online survey in February 2014. The survey targeted approximately 1,400 business professionals*1 in Japan, China (mainland: hereafter referred to as China), Hong Kong, and Singapore, regarding awareness of Japan's Integrated Resort (JIR).

The results revealed that over 70% of Japanese business professionalsconditionally support the introduction of IRs, believing they would help attract overseas tourists.

Survey highlights are as follows.

※1 Domestic respondents were employed Nikkei Business Online readers with household incomes of ¥5 million or more; overseas respondents were employed individuals residing in the target areas whose household incomes were in the top 20%.
※2 IR (Integrated Resort) refers to a resort facility established through the integrated development of various local tourism resources and a casino, complementing each other's functions.
※3 Conditional means that it is contingent upon the establishment of relevant legislation and the implementation of measures to ensure transparent and fair operation, crime prevention, and youth protection.
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【Survey Results Highlights】

① Awareness of Japan's IR introduction movement among domestic residents: 71.8%.
In China, it is 77.0%, in Hong Kong 62.0%, and in Singapore 53.0%.

② 61.2% of domestic residents strongly support, support, or somewhat support IR introduction. After detailed explanations about IR, support and conditional support rose to 73.3%.

There is also strong international demand for IR introduction in Japan. Conditional support after IR explanation was 96.0% in Hong Kong, 92.0% in China, and 85.0% in Singapore.

③ The top perceived benefit cited by domestic residents supporting IR introduction is the expected influx of overseas visitors (73.8%). Expectations for economic benefits from casino revenues are also high (59.7%).

Conversely, the top perceived disadvantage is the involvement of anti-social forces (64.1%).

④ Over 90% of the business community in Hong Kong and Singapore have used IRs.
Hong Kong: 98.0%, Singapore: 92.0%, China: 75.0%, Domestic residents: 46.4%.

⑤ Interest in visiting IRs from overseas is strong if they open in Japan: 96.0% in Hong Kong, 84.0% in China, 78.0% in Singapore. Meanwhile, domestic residents show 54.7% interest.

⑥ Among domestic residents, casinos rank first (74.5%) as facilities they would like to use at Japanese IRs. Interest is also strong for adult entertainment such as theaters and revues (63.8%) and shopping malls (56.2%).
For China/Hong Kong, "hotels/lodging facilities" ranked first, while for Singapore, "family-oriented entertainment facilities like theme parks" ranked first.

⑦ 55.0% of respondents in China and 52.8% of domestic residents desire IRs that emphasize Japan's uniqueness.
Hong Kong and Singapore show slightly stronger preference for international-style IRs (those fully adopting successful overseas models like Las Vegas or Singapore) – 61.0% in Hong Kong and 59.0% in Singapore favor this type.

⑧ The top candidate location deemed suitable for a Japanese-style IR by domestic residents is "Tokyo's Odaiba area."

[Overview of the Survey on Domestic and International Business Professionals' Perceptions of Japanese Integrated Resorts (JIR)]

・Survey Purpose: To investigate the awareness, perceptions, and expectations of domestic and international business professionals regarding Japanese Integrated Resorts (JIR) following the submission of the "Bill on the Promotion of Development of Specific Integrated Resort Areas" (commonly referred to as the Casino Promotion Bill).

・Survey Method: Online survey
・Survey Participants: <Japan> Employed individuals with household income of ¥5 million or more who are readers of Nikkei Business Online
<Overseas> Employed individuals residing in target areas with household income in the top 20%
・Valid Responses: <Japan> 1,089
<Overseas> China: 100, Hong Kong: 100, Singapore: 100
・Survey Period: <Japan> February 12–28, 2014
<Overseas> February 14–24, 2014
・Research Organization: <Planning> Dentsu Inc., Nikkei BP Inc.
<Fieldwork> Nikkei BP Consulting Inc.

Detailed explanations regarding IR will be provided during the survey questions below

 An Integrated Resort (IR) refers to a complex tourism, attraction, and commercial facility that attracts domestic and international business travelers, tourists, and local residents. It centers around a legal casino and includes hotels, convention facilities such as exhibition halls, shopping malls, entertainment facilities like theaters and amusement parks, cultural facilities, and health-related facilities such as medical services, beauty/esthetics, and massage.

Following the success of Las Vegas, Macau, and Singapore, South Korea and the Philippines aim to open IRs within three years. Additionally, Taiwan, Vietnam, India, and others are actively pursuing large-scale IR development.

According to estimates by Goldman Sachs Securities, if a Japanese-style integrated resort (IR) were to be realized in Tokyo, the total project cost could range from 80 billion to approximately 1.1 trillion yen, with annual sales potentially exceeding Las Vegas's roughly 580 billion yen to reach about 780 billion yen.

Over 20 municipalities nationwide have expressed interest as potential construction sites.

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Dentsu Inc. News Release

http://www.dentsu.co.jp/news/release/2014/0520-003734.html

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