According to the current 2020 goal of Japan, the country plans to double its visitors in coming years. The primary goal of 2016 to attract 20 million foreign visitors was reached by the country. This is a huge boost as since 2013 the number of travelers coming to the country has doubled as it is stated in the latest report by the Japan National Tourism Organization.
The approval of casinos in December 2016 has opened new investment opportunities for the country’s hospitality industry. Casinos will be open as a part of so called IR (Integrated Resorts) that will also include hotels, entertainment and retail space. Their impact on economy of the country is hard to overestimate US$47.5 billion in additional economic impact in case of development of the IR in three popular destinations Osaka, Yokohama and Okinawa. The approval of casinos makes real estate and hospitality sectors even more attractive for foreign and domestic investors. Foreign investors find luxury hotels in Japan very appealing. Currently, hotel investors are particularly interested in buildings new luxury hotels in Tokyo, Hokkaido, Okinawa, Osaka and Yokohama as these are the destinations that are most likely to get casinos. As inbound tourism in Japan is growing as well, in coming years there will be a definite need in more resorts in the country.
Overseas investors have already started entering the Japanese market and plan to open more luxury hotels and serviced residences in the country. As the majority of large cities in Japan have sites that need to be rebuilt or renovated, the country might experience a building boom in future.