Hulic Co., reportedly the second-best performer among Japanese real estate firms in the past two years, will invest as much as $981 million in hotels in Japan, citing an imminent rise in inbound Japan tourism over the next five years.
It's hoping its calculations are correct. Bloomberg reports that Hulic is looking to acquire properties for hotel development, quoting Noritaka Takahashi, general manager of the real estate planning department at the Tokyo-based company.
The hospitality business is becoming one of Japan’s fastest-growing industries as the government targets inbound tourists to reach 20 million by 2020, Bloomberg further reports, when Tokyo hosts the Olympic Games.
Foreign visitors to the country in April rose to a record high, gaining 33 percent to 1.2 million from a year earlier, according to an estimate by the Japan National Tourism Organization.
“We have identified some opportunities in the tourism market and we recognized our strength lies in the lodging business,” said Takahashi.
Consumption by inbound tourists rose 31 percent to 1.4 trillion yen in 2013, while spending by domestic travelers gained 4 percent to 20.6 trillion yen, according to the Japan Tourism Agency.