But is that still enough to call it a success?
When the 2025 Osaka-Kansai Expo was set to open last April, a large number of nay-sayers came out of the woodwork, predicting it would be a colossal failure. Politician Fusaho Izumi dubbed it the “waste of the century,” and an explosion caused by a gas pocket in the landfill during construction caused some schools to turn down free tickets to the Expo.
Other problems began to emerge in the opening weeks, such as clouds of harmless but gross flies and the bacteria responsible for Legionnaire’s disease being found in the large fountains at the ocean side of the venue. But, despite all this, attendance steadily grew over the coming months, and everyone I talk to who went recently said it’s been insanely busy.
Now, with only a few days left before the closing ceremony, the Japan Association for the 2025 World Exposition announced that the projected revenue from the event will have put it in the black by somewhere between 23 and 28 billion yen (US$150M-$184M). For reference, this is about twice as much as the 2005 Aichi Expo’s 12.9 billion yen in profit.
The bulk of this profit, some 20 billion yen, is said to have come from ticket sales, and a further three billion was generated from sales of merchandise. Also, even though operating costs swelled by about 40 percent at the start of the Osaka Expo, it is now estimated to be up to five billion yen less than originally expected.
Association Chairman Masakazu Tokura said, “We worked hard to ensure the safety and security of the venue, and as a result, the event was well received and many people came. Myaku-Myaku goods also contributed.” He also explained that the final profit will be tallied after the association is dissolved in March 2028, and the national government will determine how the profit will be used.
There was a widely mixed reaction to the news in online comments. Many hoped this wouldn’t mean the end for its mascot, Myaku-Myaku, while others felt the association was misleading in calling the event a financial success.
“Let Myaku-Myaku keep going when this is finished!”
“The operating costs might be in the black, but the construction costs are still a huge burden.”
“23 billion yen doesn’t seem like a lot.”
“Expos are better than the Olympics because they last longer and leave more of an impression on people.”
“They should just build a Myaku-Myaku theme park on the site.”
“I’m glad it’s in the black, but regardless, it’s the memories it made for people that’s important.”
“I think some people owe Governor Yoshimura and Myaku-Myaku an apology.”
“It’s not in the black, that’s just operating costs…”
The critical comments are correct in suggesting other significant costs were not mentioned in the Association’s announcement. The biggest of these costs is the construction of the venue, which has been reported at about 235 billion yen, or roughly 10 times the projected operating profit.
There are also additional costs for security, dismantling of the site, and infrastructure, which are sizable but not nearly as large as the initial construction cost. Looking at that alone, it’s fair to say that the Expo is now hugely in the red overall. However, the Expo is just the precursor to Osaka’s long-term plans for Yumeshima, the island where it’s taking place.
Those who visited the event may have noticed that right next door, construction is already well underway for an integrated resort and casino managed by MGM and Orix, set to open in 2030. All of the infrastructure used to service the Expo will very soon be used for this massive moneymaking venture, which is estimated to bring in between 85 and 106 billion yen in taxes to Osaka Prefecture per year, wiping out its share of all the non-operating costs of the Expo in a matter of years.
▼ The resort already has its own train station up and running.
So, while the comments are not wrong regarding the somewhat misleading financial report of the Association, it is also an oversimplification to say it’s just a matter of money in and money out. The Expo did its job in operating in a profitable way that most people I talked to seemed to enjoy, and a highly lucrative, though morally questionable, enterprise is well on its way to pick up where it left off.
From that standpoint, it’s probably still fair to say it’s been a success.
Source: The Sankei Shimbun, Hachima Kiko, eHousing, Osaka Prefecture, METI
Photos © SoraNews24
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