- Japan’s tourism industry traditionally catered primarily to domestic visitors, with minimal inbound tourist traffic. Consequently, the upscale segment has remained largely underdeveloped.
- Japan is presently enjoying a surge in inbound tourism. However, the average spending per inbound tourist remains comparatively modest, presenting significant potential for further expansion.
- The development of casinos had historically been refuted by the government, with smaller scale pachinko parlours serving as the main legal option, primarily for domestic patrons.
- Osaka’s integrated resort (IR) development will herald the birth of Japan’s casino sector, and aims to compete with other major IR facilities in the region and attract high-spending visitors from booming economies in Asia.
- The successful development of the Osaka IR will likely spur the creation of further IR developments elsewhere in Japan, which should propel the Japanese casino industry as a viable and sustainable tourism segment.
- 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.
- The concurrent development of other luxury tourism sectors in Japan will likely channel some high-end demand for entertainment towards Japan’s IR facilities.
Promising growth opportunities within Japan’s integrated resort industry
The present surge in inbound tourism is unveiling exciting prospects across various upscale tourism segments. Notably, the forthcoming Osaka integrated resort in the 2030s will signal the emergence of an entirely novel industry. Leading visionary stakeholders are already committing substantial sums of capital to this burgeoning sector, foreseeing exponential expansion and escalating demand. Overall, the outlook is optimistic, and these advancements are anticipated to expedite Japan’s evolution into a sustainable tourist hub of the future.
Savills Research & Consultancy