A few rays of hope as Japan feels the crunch

THE world recession is hitting the Land of the Rising Sun, but Osaka is hoping tourism and trade will take off again when a new airport opens next year.

Kansai International Airport is the first in the region to be built entirely on a man-made island. According to hoteliers in Osaka, the occupancy rate last year was down by around 10 per cent.

Unlike Hong Kong, where the majority of tourists are from overseas - China, the US and European countries - locals generate the biggest revenue for the hotel business in Japan.

Mr Charles Besford, general manager of the newly-opened Westin Osaka, said: ''Around 80 per cent of our guests are Japanese, many of whom are on trips which are business related. But we also have leisure traffic over the weekends.'' Like many other hoteliers in the area, Mr Besford has high hopes that the new airport will revitalise the regional economy and has set next year's target for occupancy at 65 per cent.

''We expect the economy to improve in Osaka after the opening of the new airport in 1994. We think the airport will have a direct impact on the local hotel industry,'' he added.

''Traffic will increase in this area and we expect Osaka to be the first [prefecture] to recover from the recession.'' The Kansai airport is situated in Osaka Bay, five kilometres off the coast of Senshu, and is a joint investment venture between the national government and the private sector.