- Japan’s tourism industry was historically geared towards domestic guests, and received very few inbound tourists. As such, the high-end segment has generally been underdeveloped.
- Japan is currently experiencing an inbound tourism boom, yet average spending per inbound tourist is still relatively meagre, and has large room for further growth.
- Osaka’s IR development will herald the birth of Japan’s casino industry, and aims to compete with other major IR facilities in the region and attract high-spending visitors from booming economies in Asia.
- The ryokan segment has been capturing the imagination of both domestic and inbound high-end visitors, with many available opportunities.
- Japan is now globally recognised as a ski destination. Visionary players are deploying significant amounts of capital to redevelop ski resorts across the country, integrating luxury accommodation and services in order to compete globally with other major high-end resorts.
- The luxury retail sector has been a major beneficiary of Japan’s elevation as a global tourism hub. The further development of the aforementioned high-end sectors will undoubtedly contribute to greater earnings in the high-end retail segment in Japan.
- Japan’s medical and healthcare expertise and infrastructure are second-to-none, but attract relatively few international visitors, which leaves room for significant growth.
- We anticipate continuous expansion in the demand for high-end experiences globally as income inequality progresses in many economies, and Japan is well-positioned to adeptly capture much of this demand.
Promising growth prospects across multiple high-end tourism areas
Japan is currently experiencing an inbound tourism boom, while the high-end tourism market is relatively underdeveloped and ripe with opportunities. Major visionary players are already deploying significant amounts of capital in prospective fields, anticipating exponential growth and potential demand. Overall, growth prospects are bright, and these developments are likely to accelerate Japan’s transformation into a sustainable tourist destination of the future.
Savills Research & Consultancy