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Overview of the Japanese Lodging Industry 1
Overview of the Japanese Lodging Industry and
Its Investment Trends – Past, Present, and Future
Despite widespread waves of Westernization that have infiltrated modern
Japanese culture in the post-World War II era, the Japanese lodging industry
has generally managed to keep its shroud of “foreignness” intact. While
neighboring Asian countries have boasted a host of American and European
lodging developments in the past twenty years, Japan has predominantly
stuck with the Japanese lodging model of ryokans (traditional inns), Japanesebranded hotels, and its own invention of capsule hotels. However, recent
changes in the second half of the present decade have indicated a changing
tide of sentiment, as investors reassess their traditionally held views of
Japanese real estate, seeing the potential of tapping into the third-largest
economy in the world. The barriers to entry into this decidedly Eastern and
Western hybrid market are beginning to erode, and Western hoteliers and
investors alike are poised to benefit from this opportunity.
External Factors
The Influences of Culture
It is essential to understand the impact of Japan’s unique culture upon its
economy and travel trends. Prior to Commander Perry’s trip in 1853,
demanding that Japan open itself to the Western world, the country led a
traditionally isolationist life, typical of several island nations of the same time
period. Under Emperor Showa’s rule in the first half of the 20th century,
Japanese citizens were schooled in their unique heritage, and nationalist
sentiments reached their apex during World War II. Japanese school children
are still taught about Japan’s...