Japan’s Hospitality Market for Foreign Investment

Japan is experiencing growth not just in tourism, but also in foreign investment specifically targeted at its booming hospitality industry. Fuelled by a surge in international arrivals, relaxed visa regulations, and government initiatives welcoming open arms, Japan is proving to be fertile ground for international hotel chains and savvy investors alike.

Note: This blog post is created for informational purposes only. GLOBAL ANGLE is an independent entity and is not affiliated with the companies mentioned in this article. The information provided is based on publicly available sources and does not constitute endorsement or representation of these companies by GLOBAL ANGLE. Any views or opinions expressed in this blog post are solely those of GLOBAL ANGLE and do not necessarily reflect the views of the mentioned companies.

Today’s discerning travellers crave authentic experiences, personalised service, and a deep connection to local culture. We look into two hospitality companies that have expanded into Japan and how they localised into the country.

Six Senses Kyoto (HQ: Thailand)
This eco-luxury haven nestled amidst bamboo groves seamlessly blends contemporary design with Japanese aesthetics. Guests savour Michelin-starred cuisine, serene onsen baths, and personalised wellness journeys that capture the essence of Kyoto’s tranquility. Their marketing strategy revolves around exclusivity, sustainability, and cultural immersion, attracting high-end travellers seeking a transformative escape.

Ace Hotel Kyoto (HQ: United States)
Quirky, trendy, and oozing hipster cool, Ace Hotel Kyoto throws open its doors to a younger, experience-hungry audience. Exposed brick walls, vibrant art installations, and a rooftop bar buzzing with life create a social yet intimate atmosphere. They tap into Japan’s youthful energy and love for social media, leveraging Instagram-worthy aesthetics and targeted online campaigns to reach their ideal clientele.

These are just a glimpse into the diverse tapestry of foreign-owned hotels thriving in Japan. But the question remains: is it really a walk in the park for everyone?

While government initiatives and increasing tourism do paint a rosy picture, navigating cultural nuances, local regulations, and fierce competition requires careful planning and strategic partnerships.

So, how to approach this?

• Identify your niche: Japan caters to a diverse range of travellers. Find your unique selling proposition and target the right audience.
• Embrace cultural sensitivity: Immerse yourself in Japanese culture and adapt your offerings to local preferences. Respectful engagement goes a long way.
• Build local partnerships: Collaborate with local businesses and communities to gain insights and authenticity.
• Leverage government support: Utilise available resources and programs to ease market entry and navigate regulations.
• Market strategically: Target online platforms frequented by your desired audience and tell your story in a compelling, culturally relevant way.

The Japanese hospitality market beckons with open arms and boundless potential. For those with the vision, cultural sensitivity, and strategic acumen, the Japan promises profitable ventures and enriching experiences. Explore our in-depth case study on Japan Tourism Marketing Research to uncover valuable insights for navigating the post-pandemic landscape.