Japan IR survey shows ongoing willingness to invest but strong push to postpone selection processes due to COVID

A survey by the Japan IR Association (JIRA) to study the impact of COVID-19 on the nation’s IR development has found that two-thirds of respondents cite no change to their desire to participate in Japan’s integrated resort business.

However, a majority believe the current schedule for IR development should be postponed for at least a year.

According to the results of the survey, which saw 132 people respond, 66.7% said there was no change to their willingness to invest in Japan’s IR business now versus before the COVID-19 pandemic. Another 12% stated their interest now was higher than before.

“This result shows businesses that are considering investing are highly motivated to do so and unwavering in their support of the market,” JIRA said.

On the timeline for IR development 59% said the current schedule should be postponed. Of those, 66.7% recommended postponing both the central government’s candidate selection period – currently scheduled for January to July 2021 – as well as the RFP processes of individual locations. Notably, 38.9% of respondents said the central government should postpone its schedule for a year or more, with another 6.9% pushing for at least 18 months and 16.7% suggesting two years or more.

A total of 55 of the 132 who responded cited the long delay to the release of the central government’s Basic Policy as a reason to postpone, while 44 said operators would require extra time for recovery post-COVID and 39 pointed to lack of time to adequately prepare for an RFP.

Another 74.8% of respondents said they expected the impact of COVID-19 on their business to last for more than a year, of which 27.5% stated the impact will be permanent.

JIRA describes itself at aiming to maximize the economic, social value and potential of IRs in Japan and shaping an industry that contributes widely to the local community in Japan.

Source: https://www.asgam.com/index.php/2020/08/03/japan-ir-survey-shows-ongoing-willingness-to-invest-but-strong-push-to-postpone-selection-processes-due-to-covid/