Can luxury travel give Japan’s economy a post-Olympics shot in the arm?
- Government support for the construction of 50 new ‘world-class’ hotels has raised hopes of a new tourism boom and has travel agents salivating
- But will they be built in the right places to divert travellers from the well-worn ‘Golden Route’ and make the country a ‘playground for wealthy tourists’?
All too often, she says, the tourists are following the well-worn “Golden Route” which links the bright lights of Tokyo and Osaka, with a cultural and historic detour to the ancient capital of Kyoto typically thrown in.
But for a foreign visitor to leave Japan with memories of only those cities is a missed opportunity, according to Teplass-Mugii, executive director of Tokyo-based travel company The Art of Travel.
“There are so many places to see and so many things to do that often when I go to these places I wonder why there is nobody else there with me,” she said.
All that could soon be set to change, however, under a new government initiative designed to get overseas visitors off the beaten track.
Though details are scant, with no mention yet of how much money might be made available, the plan appears to involve government support for the construction of 50 new high-end hotels in parts of the country that are less popular with tourists or where the local travel industry has taken a hit.
Chief Cabinet Secretary Yoshihide Suga hinted at as much last weekend during a visit to Kyushu, the most southwesterly of Japan’s main islands that was rocked by a series of earthquakes in April 2016, damaging infrastructure and crippling the local travel industry.
After inspecting reconstruction work in the prefecture, Suga said the government “will aim to build around 50 world-class hotels across Japan”.
Funds for the ambitious development programme will come from a loan scheme for private sector companies being set up under a new stimulus package recently unveiled by the government.
While the travel industry is delighted at this new-found appreciation of Japan as a tourist destination, many within it caution that there is a growing need to get visitors off the so-called Golden Route that links Tokyo with Kyoto and Osaka.
Aware of the congestion that is already clogging these three must-see destinations, the government will be offering incentives for hotel developers to build new properties elsewhere in Japan.
“As a luxury travel company, we know there is a real shortage of high-end accommodation options across Japan so this is very welcome, although I do hope that a lot of thought goes into how these hotels are going to be developed,” said Teplass-Mugii, of The Art of Travel.
“It has to be done thoughtfully and find a balance between global brands and local ownership and the creation of properties that are different and distinctively Japanese.”
One pitfall would be creating a slew of new hotels that were all much of muchness and not very different from those found elsewhere in the world, she said.
While the “Golden Route” remains popular with the vast majority of first-time tourists in Japan, repeat visitors are showing signs of stretching their wings to reach other parts of the country.
High-end tourism can have a number of knock-on benefits for local economies as money filters down from top-class hotels and restaurants, according to Ashley Harvey, country manager for destination management and public relations firm Aviareps Japan.
“I suspect there has been a shift in thinking away from volume tourism to the significantly higher returns that can come from the luxury market,” he said
“The thinking is that the luxury market can act as a key driver of the travel economy and will proportionally have a much larger effects as these people will stay longer, are not worried about price points and whatever they spend in hotels and restaurants provides opportunities in a whole load of associated businesses.”
Harvey described the potential for luxury tourism in Japan as “huge”, but said it was critical that attention was diverted away from Tokyo, Kyoto and Osaka.
“Japan absolutely can handle 60 million foreign visitors every year, but Kyoto can’t,” he said. “There needs to be far greater awareness of the product, of how people can get to some of these more distant places, of meeting their needs for helicopters or private jets.”
Some areas of the country, such as the tropical islands of Okinawa and ski resorts in Nagano and Hokkaido prefectures, were already “getting on the luxury travel bandwagon”, Harvey said, but others like Lake Biwa have the potential to become Japan’s version of Italy’s Lake Como – a “playground of wealthy tourists”, he said.