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It had been rumored due to lack of any information to come out after the initial annoucement, but this is the first time I think it's ever been officially confirmed.
Okinawa wouldn't be that great of a location. Yea the US military families would most likely get passes to attend often but there would no strong local support and truly dependent on tourists.
Okinawa has a lot of political turmoil ...many of the locals aren't big fans of the military presence and having scandals every few years of soldiers involved in illegal activity doesn't help much. I'm not surprised this was cancelled and it can let them focus more on Osaka