Japan’s tourism, economic growth attract fivefold increase in foreign investments in hotel assets
- Japan’s hotel sector drew a fivefold increase in overseas investment to US$691 million year to date amid a revival in the nation’s tourism fortunes
- A 3.4 billion yen acquisition deal by Hong Kong-listed Golden Resources Development for Japan’s Ni Corporation is likely to close as soon as the end of this month
The hotel segment in the world’s third-largest economy received nearly 98 billion yen (US$691 million) in overseas investment between January and mid-June this year, more than five times the 17.8 billion yen in the first half of 2022, according to data from research firm MSCI Real Assets.
“What I think is happening is more people [from] outside, more foreign capital are looking at multiple sectors to invest in,” said Pamela Ambler, head of investor intelligence for Asia-Pacific at JLL.
Since Japan fully lifted pandemic-related travel restrictions in early October after more than two years of isolation, the country has attracted an increasing number of visitors. In April, the land known for its cherry blossoms, onsen and popular anime films and series, welcomed nearly 2 million tourists, a post-pandemic high, according to the latest figures from the Japan National Tourism Organisation.
Even the economy, after years of stagnation, is showing signs of revival. Japan’s gross domestic product expanded 2.7 per cent in January to March, compared with last year, much higher than a preliminary estimate of a 1.6 per cent growth, as revised capital expenditures and strong private consumption more than offset the slowdown in external demand, Reuters reported last week.