2020 Olympics in Tokyo: Government backs hotel construction

Japan is experiencing a rapid increase in tourism. The goal of drawing 20 million tourists by 2020 has already been achieved. Hotels and accommodation facilities are hardly able to meet the demand. With the 2020 Olympic Games in Tokyo, the demand will be even higher. As a result, the government is backing the construction of more hotels.

Tourism figures in Japan are growing more rapidly than expected.
Tourism figures in Japan are growing more rapidly than expected.

According to the "Japan National Tourism Organization JNTO," 24 million tourists visited Japan in 2016, which exceeds the Japanese government's goal of drawing 20 million tourists by 2020. The government has now announced that it is increasing the goal to 40 million and that it will provide support in order to cover the demand for hotels. 

Hotel construction to receive government support

To date, the "Organization for Promoting Urban Development" has supported the construction of schools, libraries, hospitals and nursing homes outside of the Tokyo, Osaka and Nagoya urban centers. This is set to change.

As of April 2017, the government will cover up to 50% of construction costs for hotels. The requirements are:

  • usable area of at least 2,000 square meters
  • location in an urban development zone
  • provision of public spaces and green areas

The funds provided by the government must be paid back by 20 years after the building's completion date.

Tourism is an important source of income for Japan

In 2016, tourism in Japan generated 3.48 billion yen in revenue (ca 31 million Swiss francs). The Japanese government is trying to increase tourism revenue to 15 billion yen by 2030 with measures such as redesigning national parks and simplifying entry requirements.

Japan is particularly seeking to draw tourists from Europe, the USA and Australia. A large percentage of tourists is currently comprised of wealthy Chinese, who enjoy buying luxury goods in Japan.

"The increasing flow of tourists creates opportunities not only in the area of infrastructure, but also in adjacent sectors such as retail, luxury goods, cosmetics and outdoor apparel. These industries could also expect a positive effect in the tourists' home countries," says Stefan Barny, Consultant for Japan and South Korea at Switzerland Global Enterprise.

Country consultation Japan

Set up an individual consultation session to discuss your exporting plans with Stefan Barny, our consultant for Japan and South Korea, or attend our Japan country consultation weeks in April and May in Basel.


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