Investors from Hong Kong are buying and building hotels in Japan in a bid to capitalise on a tourism boom that contributed to an 8.7% year-on-year increase in tourist arrivals last year. According to the Japan National Tourism Organisation, a record 31.19 million tourists visited the country in 2018.
And international events such as the Rugby World Cup Japan 2019, Tokyo 2020 Olympics and World Expo 2025 in Osaka will only boost the demand for hotels, said Steve Huen Kwok-chuen, executive director and co-founder of Hong Kong-listed travel agency EGL Tours.
Japan is a major focus at EGL Tours, with packaged tours to the country contributing 54.5% of revenue, HK$468.1 million (USD 59.6 million), for the six months ending 30 June 2018.
The company said it also expected to benefit from the New Private Lodging Business Act, which was rolled out in Japan in June 2018 and will reduce competition from the likes of Airbnb.
Odyssey Capital is renovating traditional town and guest houses, and is repurposing them as luxury boutique hotels.
In March 2018, Hong Kong-based Sis International bought Unwind Hotel & Bar in Sapporo from Japanese residential landlord Global Agents for USD 11.23 million, according to Real Capital Analytics.
Read Original Article