Tourism bonanza in Japan ignites unprecedented influx of foreign investments in hotel assets

Sustainable tourism initiatives in Hokkaido elevate Japan’s appeal to global investors 

Japan’s vibrant tourism industry continues to drive economic growth and attract a fivefold increase in foreign investments in hotel assets, signalling a promising outlook for the country’s hospitality sector. The combination of Japan’s rich cultural heritage, breathtaking landscapes, and sustainable tourism practices has garnered international attention, as investors seek to capitalise on the country’s flourishing tourism market. 

According to the South China Morning Post (SCMP), Japan’s tourism-driven economic growth has contributed significantly to a substantial rise in foreign investments in hotel assets. This industry has been a key driver in attracting USD691 million in foreign investments in the country’s hotel sector, reflecting growing confidence in the market’s potential for returns. 

This surge in foreign investments has been accompanied by an increasing focus on sustainable tourism practices. Hokkaido, the northernmost island of Japan, has emerged as a shining example of responsible and sustainable tourism initiatives. The region has taken notable steps to preserve its natural beauty and cultural heritage while catering to the growing influx of tourists, reported sustainable network Lifegate. 

Hokkaido’s commitment to sustainable tourism can be observed in various initiatives aimed at preserving the region’s unique ecosystems and promoting eco-friendly practices. The island has implemented measures to manage waste effectively, conserve energy, and minimise the impact of tourism activities on the environment. These efforts have not only enhanced the overall experience for visitors but have also elevated Japan’s appeal to international investors, who recognise the importance of responsible tourism in the long-term sustainability of the industry. 

Within Hokkaido is the alpine town of Greater Niseko, known for its award-winning hotel sector, made up of PropertyGuru Asia Property Awards (Greater Niseko) 2022 honourees, such as Nihon Harmony Resorts KK and PCPD (Best Integrated Resort Development for Park Hyatt Niseko Hanazono and Hanazono Resort Niseko, as well as Special Recognition for Tourism Landmark Development for Mountain Lights at Park Hyatt Niseko Hanazono), Niseko Village (Best Hotel Condo Development for Hinode Hills), H2 Group (Best Completed Luxury Hotel Condo Development for HakuVillas), and Blue Waves Group (Best Completed Resort Housing Development for Andaru Collection Niseko). 

Related: The 5th PropertyGuru Asia Property Awards (Greater Niseko) 2023 celebrate popularity of Japan’s alpine market

The positive developments in Japan’s tourism sector have garnered attention from international investors, who see tremendous potential for growth and profitability. The surge in foreign investments in hotel assets is expected to further enhance the quality of accommodations and expand the range of hospitality offerings across the country. 

As Japan’s tourism sector thrives and sustainable practices take centre stage, the nation’s rise as a global tourism powerhouse seems unstoppable. The positive trend of increased foreign investments in hotel assets aligns perfectly with the country’s vision of promoting sustainable tourism, preserving cultural heritage, and supporting local communities. 

Witnessed any award-worthy residential or commercial projects in Niseko? Nominate them for the annual PropertyGuru Asia Property Awards (Greater Niseko) on or before 15 September 2023. For more information, visit AsiaPropertyAwards.com/GreaterNiseko. 

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].