Investing in Prosperity: How Japan’s Experience-Based
Tourism Boom Impacts Real Estate Opportunities
Hello esteemed readers and potential investors,
In the pulsating economic landscape of Japan,
a compelling trend is unfolding that holds significant implications for us all,
particularly those of us vested in international real estate investments.
Since last autumn, Japan has experienced a substantial resurgence in inbound tourism.
However, the dynamics of this resurgence are quite different from what we’ve seen in the past.
There’s been a considerable decline in ‘explosive buying’,
a phenomenon that once characterized Japan’s tourism industry.
Instead, the spotlight is now on experience-based consumption.
This shift is transforming not only the hospitality sector
but is also leaving its mark on the real estate industry.
To capitalize on this trend, high-value experiences are emerging as the linchpin
of the tourism industry’s evolution.
One can see this clearly with the introduction of culturally immersive tours and luxury services.
For instance, in the serene and spiritual setting of Koyasan, Wakayama,
a comprehensive tour package is being offered that
encompasses Buddhist practices such as meditation,
traditional vegetarian meals,
and an evocative night tour of the ancient Okunoin cemetery.
This experience-driven tourism approach is highly appealing to Western tourists,
signifying a shift towards quality over quantity in the inbound tourism sector.
On the gastronomic front, we can see similar high-value initiatives.
A prominent example is the restaurant “Nadaman” in Yokohama.
They have introduced a premium menu, specifically curated for foreign guests,
which significantly exceeds their previous offerings for local patrons in terms of cost.
The course includes raw lobster sashimi, Hida beef and abalone teppanyaki, sushi, and finishes
with a dessert of Shizuoka muskmelon,
all for 65,000 yen per person (US$500), with a guaranteed private room.
*Borrowed from Nikkei
This illustrates the emphasis being placed on catering to the demands of the international market.
Marketing these experiences is another area of innovation.
Numerous international Online Travel Agencies (OTAs)
have been employed to reach a global audience
A Tokyo-based company, Japanticket, is providing a platform to facilitate these experiences.
They have developed a real-time seating availability management system and
even collaborated with Honda to offer an exclusive private jet tour experience.
The plan is to visit an inn deep in the mountains of Toyama Prefecture, “L’évo,”
which is attracting gourmands from around the world, and a sake brewery.
Early responses to the idea have been positive,
with Japanticket noting that pricing is being considered “around a few million yen”
Such strategies are designed to cater to the tastes of affluent tourists,
thereby increasing tourism revenue and creating a robust
framework for the future of Japan’s inbound tourism.
Japan, particularly its rural areas, is rich in attractive resources.
By adding value to these resources and offering them at bold prices instead of discounting,
the government’s target of 15 trillion yen (US$108 billion).
in inbound travel consumption by 2030 is by no means impossible to achieve.
These developments present a multitude of opportunities for foreign real estate investors.
With the rise of high-value experience-based tourism,
the demand for luxurious accommodations and exclusive locations is projected to increase.
As a result, real estate investments catering to
this market segment may experience substantial growth.
So, what does this mean for you as a prospective investor?
If you’re considering expanding your real estate portfolio in Japan,
the time to act is now. Investing in properties that can accommodate
this burgeoning tourism market could prove highly rewarding.
For instance, properties in the vicinity of these high-end experiences and restaurants might see
increased demand. Furthermore, luxury accommodations suitable
for affluent tourists might provide considerable returns.
Our team is here to guide you through the process.
We can provide invaluable advice on potential locations, types of properties,
and other factors that can maximize your return on investment.
Let’s leverage the trends shaping Japan’s tourism industry
and create a prosperous investment future.
In conclusion, the transformation of Japan’s inbound tourism,
with its focus on high-value experiences, paints a promising picture for the real estate market.
We are dedicated to providing you with regular insights into Japan’s market trends
and potential investment opportunities.
Together, let’s seize these exciting opportunities and invest in a prosperous future.
As always, we’re just one message away for
any advice or discussions about your investment plans.
Real estate investing consultant and author.
Founder of Yamamoto Property Advisory in Tokyo.
International property Investment consultant and licensed
real estate broker (Japan).
He serves the foreign companies and individuals to buy and sell
the real estates in Japan as well as own homes.
He holds a Bachelor’s degree in Economics from
Osaka Prefecture University in Japan
and an MBA from Bond University in Australia
Toshihiko’s book, “The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage and Sell Real Estate in Japan” is now out on Amazon, iBooks (iTunes, Apple) and Google Play.
About the book