Spotlight Japan inbound retail - October 2018 Savills World Research Japan

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Spotlight Japan inbound retail - October 2018 Savills World Research Japan
Savills World Research
                                        Japan

Spotlight
Japan inbound retail   October 2018

                             savills.co.jp/research
Spotlight Japan inbound retail - October 2018 Savills World Research Japan
Spotlight | Japan inbound retail                                                                                                                                   October 2018

                                                                                                                                                                                 Savills World Research
                                                                                                                                                                                                  Japan

                                                                                                                                                          Spotlight
                                                                                                                                                          Japan inbound retail   October 2018

Spotlight
Japan inbound retail                                                                                                                                                                   savills.co.jp/research

“Japan is evolving as a global travel destination,
and the retail market is benefiting from the                                                                     SUMMARY
explosive growth of inbound tourism. The
impact is being felt across various retail sectors.                                                               Shopping expenditure by overseas tourists
                                                                                                                 reached JPY1.6 trillion in 2017, accounting for 37% of
If the country skilfully targets different tourist                                                               their total expenditure.

preferences, some of Japan’s retail market could                                                                  Food and beverage, as well as entertainment
continue to grow even faster than the rapidly                                                                    spending has shown steady growth, exceeding
                                                                                                                 JPY1.0 trillion in 2017.
expanding hospitality industry.”
                                                                                                                  Convenience stores, drug stores, and department
                                                                                                                 stores are frequently used for shopping by overseas
Introduction                                             The number of inbound tourists has
                                                                                                                 tourists, and sales for these categories have been
Japan is an enormous retail market                       increased exponentially from 6.2
                                                         million in 2011 to 28.7 million in 2017,                growing.
with annual retail sales of over JPY140
trillion, and most global retail brands                  and total expenditures by overseas
                                                         tourists amounted to JPY4.4 trillion.                    Regional tourism should continue to grow
have established client bases in                                                                                 to the benefit of retail shops and malls in those
the country. While domestic retail                       The government has set a goal of
                                                                                                                 areas. Inbound tourism might be the last source of
demand is stable, rapid expansion                        40 million overseas visitors and
                                                                                                                 sustainable growth for some regional economies.
of tourism in recent years has jolted                    JPY8 trillion of spending by 2020.
this mature market with new energy                       It also aims to significantly increase
                                                                                                                  Although resources are limited in regional
and is creating opportunities for a                      Meeting, Incentive, Convention, and
                                                                                                                 markets, capital has started flowing as many large
wide range of retailers who can swiftly                  Exhibition (MICE) related expenditures
                                                                                                                 players now have 'skin in the game' via the hospitality
adapt to new trends.                                     from about JPY150 billion in 2016 to
                                                                                                                 industry.
MAP 1
                                                                                                                  Experience is the essence of travel, and landlords
Global luxury chain hotels* in Japan                                                                             should be able to benefit from mixing tenants who
                                                                                                                 can provide unique and exciting offerings.

                                                                              +2

                                                                        1
                                                                                                              JPY800 billion in 2030. The Rugby
                                                                                                              World Cup 2019, the 2020 Tokyo
                                                                                                              Olympics, and integrated resort (IR)
                                                                                                              development could also be a boon for
                                                                                                              inbound tourism.

                                                                                                              With the expansion of inbound tourism,
                                                     4
                                                                                                              more investments are taking place
                                                                   +5                                         in regional cities. This can be seen
                                               +3
                                                             17
                                                                                                              in the increased number of lodgings
                                         7                                                                    sprouting up around the country. More
                                                                                                              luxury hotel brands are also opening
                                                                                                              up in cities that used to be mainly for
                       1                                                                                      domestic tourists. In areas where
                                                                                                              lodgings are not sufficient, peer-to-
                                                                                                              peer accommodations (minpaku)
                                                                        # of luxury hotels in the pipeline
                                                                                                              may fill the void to accommodate
                           +2                                                                                 regional tourism. Capital is also flowing
                                                                                                              as regional banks are actively lending
                   2                                                    # of luxury hotels
                                                                                                              money, and funds to promote tourism
                                                                                                              are being launched by both the public
Source: Smith Travel Research (STR), press releases,, Savills Research & Consultancy
* We have counted the number of hotels whose brands are categorised as luxury chains by STR in the 2018 STR
                                                                                                              and the private sector. Investment
Chain Scales list.                                                                                            should continue to increase as many

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Spotlight Japan inbound retail - October 2018 Savills World Research Japan
Spotlight | Japan inbound retail                                                                                                                                October 2018

large players now have skin in the           convenience stores makes them the            GRAPH 1
game via the hospitality industry, which     most frequented store types where            Overseas tourist retail/service
previously catered mostly to Japanese        tourists spend money. This is followed
tourists.                                    by airport duty-free stores, drugstores,
                                                                                          expenditures, 2014 – Q2/2018
                                             department stores, and supermarkets,                                                                  Shopping   F&B     Entertainment
                                                                                                        800
In the face of a dwindling population,       where one in two tourists choose to
inbound tourism could be the only            shop. Additionally, 15% to 17% of                          700
immediate chance for retail shops            tourists shop at outlet malls, fashion
and malls in some regional areas to          speciality stores, and urban retail shops,                 600

reposition to a sustainable growth           which, although small as a percentage                      500
trajectory. For popular tourist              of the total, accounts for the equivalent

                                                                                          JPY billion
destinations, this is likely to be a long-   of 4.3 to 4.9 million people. To highlight                 400
term growth driver. Osaka in particular      how inbound tourism is affecting
                                                                                                        300
is a clear beneficiary of tourism growth     Japan’s retail market, we discuss three
with drug stores and department              primary shopping venues: convenience                       200
stores performing exceptionally well.        stores, drugstores, and department
                                                                                                        100
The news of an old family-run food           stores. Although these are store types
stall in Osaka Castle Park earning over      that have been significantly benefiting                             0
JPY500 million in three years also           from inbound tourism, insights obtained                                      Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
                                                                                                                                2014     2015        2016           2017      2018
shows how wide the spillover effect is.      from examining these sectors could
                                             present useful lessons for other store       Source: Japan Tourism Agency, Savills Research & Consultancy
Since experience is the essence of           types as well.
travel, Japan’s retail market should                                                      GRAPH 2
largely benefit from incorporating           Convenience store sales                      Overseas tourist shopping places, 2017
service elements into the shopping           According to the Ministry of
experience. Forays into the hospitality      Economy, Trade and Industry (METI),
industry by luxury fashion brands            convenience store sales increased                                            80%
such as Armani, Bulgari, and Versace         from JPY8.1 trillion to JPY11.7 trillion                                     70%
illustrate the compatibility of retail and   between 2010 and 2017, an impressive
                                                                                                                          60%
service. Although Japan is known for its     45% increase. While an increase in the
service quality, a lack of basic amenities   number of stores largely contributed                                         50%
                                                                                                            Usage ratio

such as multilingual services and WiFi       to overall sales, sales per store also                                       40%

spots is leading to dissatisfaction.         grew in all regions between 2010 and                                         30%
These are low hanging fruits that could      2017. In 2017, sales per store were
                                                                                                                          20%
potentially give some well-prepared          the highest in Kanto at JPY221 million,
retailers a competitive advantage.           followed by Kyushu/Okinawa, Kinki,                                           10%

                                             and Tohoku, respectively.                                                    0%

Overview of inbound
tourist spending                             Although it is not easy to isolate the
Although a rapid increase of Chinese         impact of inbound tourism on sales
tourist spending due to “bakugai”            growth, its contribution is assumed
(“explosive buying”) virtually ended in      to be significant in cities that are
                                             popular among tourists. According to
2015, total expenditures by overseas                                                      Source: Japan Tourism Agency, Savills Research & Consultancy
                                             Nikkei’s 2017 retail survey, over 70% of
tourists are steadily growing. In
                                             surveyed convenience stores reported
2017, total shopping expenditures                                                         GRAPH 3
                                             that inbound tourist customers
by overseas tourists reached JPY1.6                                                       Convenience store sales per store by
                                             increased compared to 2016. And,
trillion, an increase of JPY214 billion or
15% YoY over 2016. Although Chinese
                                             in the same survey, over 50% of              region, 2010 vs 2017
                                             respondents said that they were
tourists account for 25% of overseas
                                             actively targeting overseas tourists.                                                                                  2010     2017
visitors, they are responsible for over                                                                     300

50% of the spending. Expenditures            For example, FamilyMart announced                              250
by tourists from other countries also        that it would let Airbnb users pick up
rapidly increased by JPY119 billion,         keys at stores. The company expects                            200
to JPY762 billion, between 2016 and          goods sales increases as Airbnb
                                                                                              JPY million

2017. Furthermore, food and beverage,        guests reportedly spent JPY800 on                              150
as well as entertainment services are        average at key pickup at its test stores.
contributing to tourists’ total spending.    Lawson started accepting Alipay, an                            100

Compared to shopping expenditures,           online payment platform popular in
                                                                                                                50
growth of these categories appears           China, in January 2017. In January
more stable and should continue in line      2018, Alipay users reportedly paid                                      0
with increases in visitation.                JPY1,500 on average, almost triple
                                             the non-user average of JPY540 (as
Inbound tourists shop at a wide range        of December 2017). Other store types
of venues and contribute to sales in         might also be able to increase sales by
various retail sectors. The ubiquity of      applying similar methods.                    Source: METI, Savills Research & Consultancy

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Spotlight | Japan inbound retail                                                                                                                                                                 October 2018

GRAPH 4                                                                                                                             Drugs and toiletries sales
Breakdown of sales growth rate in the drug and                                                                                      The popularity of Japanese drugs and
toiletry sector by city, 2015 vs 2011                                                                                               cosmetics among overseas tourists is
                                                                                                                                    widely publicised. METI’s data shows
                                  Efficiency factor   Sales floor factor   Confounding        Total retail sales                    that drug store sales increased from
              80%
                                                                                                                                    JPY4.9 trillion to JPY6.0 trillion between
              70%
                                                                                                                                    2014 and 2017. At the city level, sales
              60%                                                                                                                   growth in the drug and toiletry sector
              50%                                                                                                                   outpaced that of overall retail sales in
                                                                                                                                    a majority of markets between 2011
Growth rate

              40%
              30%                                                                                                                   and 2015. Most notably, in the Chuo
              20%                                                                                                                   Ward of Osaka, where Shinsaibashi is
              10%
                                                                                                                                    located, drug and toiletry sales grew
                                                                                                                                    over 150% during the same period
               0%
                                                                                                                                    due to explosive increases of overseas
              -10%
                                                                                                                                    shoppers in the area.
              -20%

                                                                                                                                    Drugs and toiletries were added to
                                                                                                                                    the duty-free item list in 2014, which
                                                                                                                                    appears to have helped sales growth
Source: METI, Savills Research & Consultancy
                                                                                                                                    in this sector. According to the Japan
                                                                                                                                    Department Store Association (JDSA),
GRAPH 5                                                                                                                             cosmetics are typically the most
                                                                                                                                    popular duty-free category among
Duty-free sales, Jan 2017 – May 2018                                                                                                overseas tourists, followed by high-end
                                                                                                                                    brand goods. New rules will simplify
              35
                                             General goods       Expendable goods        Per person
                                                                                                         80,000
                                                                                                                                    the process of claiming duty-free items
                                                                                                                                    by allowing general and expendable
              30                                                                                         70,000                     goods to be claimed together.
                                                                                                                                    Digitisation of purchase records will
                                                                                                         60,000
              25                                                                                                                    eliminate the hassle of carrying around
                                                                                                         50,000                     passports thickened with receipts.
                                                                                                                   JPY per person
JPY billion

              20
                                                                                                         40,000
              15
                                                                                                                                    Unlike the short-lived electronics
                                                                                                         30,000                     and luxury item shopping sprees, the
              10                                                                                                                    popularity of daily necessities is likely to
                                                                                                         20,000
                                                                                                                                    last longer. Drug, toiletry, and cosmetic
               5                                                                                         10,000                     products are popular among not only
                                                                                                                                    Chinese, but also Taiwanese and
               0                                                                                         0
                                                                                                                                    South Korean tourists, which should
                                                                                                                                    also contribute to stable demand for
                                                                                                                                    these items. However, one caveat is
Source: JDSA, Savills Research & Consultancy                                                                                        that sales growth in this sector was
                                                                                                                                    primarily driven by increases in sales
GRAPH 6                                                                                                                             floor areas rather than improvement in
                                                                                                                                    sales efficiency in many cities. If total
Comparison of store sales growth of major                                                                                           demand shrinks, competition for larger
department store chains, FY2017 vs FY2016                                                                                           shares will intensify.

                                                                                                                                    Department store sales
                                                                                                                                    Department stores are another
                                                                                          Hankyu Umeda
          Hankyu Hanshin
                                                                                                                                    beneficiary of inbound tourism. As
                                                                                                                                    discussed in our “Japan Retail May
                                                                                        Osaka Takashimaya
                                                                                                                                    2018” report, inbound tourist demand
          Takashimaya
                                                                                                   Daimaru                          is propelling sales at department
                                                                                                 Shinsaibashi                       stores in popular destinations. Such
          Daimaru Matsuzakaya
                                                                                                                                    properties in Osaka in particular have
                                                                                    Seibu Shibuya                                   been outperforming others.
          Sogo Seibu

                                                                                    Ginza Mitsukoshi                                Unlike convenience stores and
          Isetan Mitsukoshi                                                                                                         drugstores, however, overall sales at
                                                                                                                                    department stores have been stagnant
          Chain total
                                                                                                                                    in Japan, save for Osaka1. The demise
                              -20.0%   -15.0%   -10.0%   -5.0%      0.0%    5.0%      10.0%      15.0%       20.0%                  1      Osaka appears to be a positive outlier among
                                                                    YoY                                                             cities. The underlying cause for this divergence is likely
                                                                                                                                    the “Osaka 2011 Problem” where a series of expansions
                                                                                                                                    and openings of new stores abruptly increased
Source: Company disclosures, Savills Research & Consultancy
                                                                                                                                    department store supply.

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Spotlight | Japan inbound retail                                                                                                                                                 October 2018

GRAPH 7                                                                                                     should also energise regional tourism
Department store sales in Japan and major                                                                   (cover photo: DoubleTree by Hilton
                                                                                                            Okinawa Chatan Resort).
submarkets, 2010 – 2017
                                                  Japan     Tokyo 23W       Yokohama   Osaka    Nagoya
                                                                                                            In the face of depopulation, regional
                           130                                                                              stakeholders have acknowledged
                           125
                                                                                                            that tourism could be the key to the
                                                                                                            revitalisation of local economies and
                           120                                                                              are ramping up their efforts to attract
                                                                                                            visitors. For some regional areas where
Sales index (2010=100)

                           115
                                                                                                            local economies are rapidly shrinking,
                           110
                                                                                                            it may be the last clear and immediate
                           105                                                                              chance to escape from the downward
                           100                                                                              spiral of decreases in population and
                                                                                                            investment. To effectively promote
                            95
                                                                                                            regional tourism, the government aims
                            90                                                                              to create 100 registered Destination
                            85                                                                              Marketing/Management Organisations
                                                                                                            (DMOs) by 2020, and 86 DMOs have
                            80
                                 2010   2011   2012       2013       2014      2015     2016     2017       been registered as of July 2018.

Source: METI, Savills Research & Consultancy                                                                These organisations are consortiums
                                                                                                            of local stakeholders; it is expected
GRAPH 8                                                                                                     that they can implement coherent
Department store sales per sq m of sales floor in                                                           strategies, which are essential for
                                                                                                            long-term growth, through effective
major submarkets, 2010 – 2017                                                                               consensus building. DMOs are also
                                                  Japan     Tokyo 23W       Yokohama   Osaka    Nagoya      responsible for collecting data on
                           125
                                                                                                            tourists. Consumer behaviour and
                           120                                                                              preferences of tourists widely differ
                                                                                                            based on their nationalities and
                           115
                                                                                                            can abruptly change, as with the
                                                                                                            Chinese tourist “bakugai”. Timely data
  Sales index (2010=100)

                           110
                                                                                                            accumulated by DMOs should assist
                           105                                                                              retailers in capturing emerging trends.
                           100                                                                              Given that tourists’ dissatisfaction
                                                                                                            comes from basic information needs
                           95                                                                               such as a lack of WiFi spots or
                           90                                                                               multilingual services, there still seems
                                                                                                            to be huge untapped potential for
                           85                                                                               sales improvements. Furthermore,
                           80                                                                               the Japan Tourism Agency (JTA) is
                                 2010   2011   2012       2013       2014      2015     2016     2017       sharing detailed survey results on
                                                                                                            tourist preferences and behaviour
Source: METI, Savills Research & Consultancy

                                                                                                            GRAPH 9
of department stores is a global                                 space has been declining since 2005.
phenomenon, and it is hard to imagine                            Retailers who can leverage growing         New supply of large-scale retail
that the trend will reverse without the                          tourism may survive competition and        facilities in major cities*, 2005-2017
entire industry going through a massive                          improve profits by increasing market
transformation. Having said that, sales                          share.                                                     1,600

per sq m of sales floor area showed
                                                                 Regional tourism
                                                                                                                            1,400
stable growth in major markets in
recent years. Specifically, Tokyo’s 23                           In Japan, total room nights stayed                         1,200
wards improved the figure by 18%                                 by overseas tourists more than
between 2010 and 2017. A likely cause                            quadrupled from 17 million to 72                           1,000
                                                                                                            Thousand sq m

for improving performance is reduced                             million between 2011 and 2017. During
                                                                                                                             800
competition following a series of                                this period, while Kanto shrank its
closures of underperforming stores. In                           share from 46% to 37%, Kinki and                            600
addition to inbound tourism demand,                              Okinawa increased their shares by 4
surviving department stores appear                               percentage points (ppts) and 3ppts,                         400
to have absorbed displaced demand                                respectively, indicating increasing
from closed stores.                                              popularity of regional cities outside                       200

                                                                 Greater Tokyo. As the number of repeat
                                                                                                                               0
What is happening in the department                              tourists increases, more people are                                2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
store sector could be applicable                                 likely to explore regional destinations.   Source: METI, Savills Research & Consultancy
to other retail categories. Graph 9                              Increases in regular routes of low cost    * Retail facilities of over 1,000 sq m of store area in 20 cities designated by
indicates that supply of new retail                              carriers (LCCs) to regional airports       ordinance plus Tokyo’s 23 wards.

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Spotlight | Japan inbound retail                                                                                                                                      October 2018

GRAPH 10                                                                                              dining, boutique shopping, and a
Total room nights by overseas tourists, 2017 vs 2011                                                  driving simulation. In 2017, Asics,
                                                                                                      a Japanese footwear and sports
                                                 2017                                                 equipment producer, opened Asics
                                              72 mil stays                                            Connection Tokyo along the Sumida
                                                                                                      River. The facility features cafes and
             2011                                                                                     fitness studios and aims to promote
          17 mil stays                                                           Kanto                active lifestyles to locals, as well as
                                                                                 Kinki
                                                                                                      domestic and overseas tourists.
                                                                                 Hokkaido
                                                                    37%
                                                                                 Kyushu
                                                                                 Chubu
                                                                                                      Currently, a shortage of multilingual
                          46%                                                    Okinawa
                                                                                                      services in Japan is a major source of
   9%                                                                            Hokuriku Shinetsu    frustration for overseas tourists. Since
                                                                                 Chugoku              interaction is usually a key element of
                                      10%                                        Tohoku               experience-based products, retailers
         21%
                                                                                 Shikoku              may be able to significantly improve
                                                                                                      customer satisfaction with better
                                                  25%                                                 language services. Advancements
                                                                                                      in translation technology, as well as
Source: JTA, Savills Research & Consultancy                                                           increases in the number of foreign
                                                                                                      residents in Japan could help address
by nationality, which should assist             retailers acknowledge the importance                  the problem. 
formation of effective strategies.              of physical stores. Incorporating
                                                experience in retail is especially                    GRAPH 11
Capital is also flowing into various            essential to attract tourists as many                 Daily food and beverage spending per
regional cities. The Regional Economy           visit Japan for unique and authentic
Vitalization Corporation of Japan,              experiences.
                                                                                                      person by country in 2017
established in 2009, has been setting                                                                                  6,000
up funds for revitalisation of regional         Enjoying local cuisine and drinks is
economies, and tourism is one of their          a popular activity for most tourists.                                  5,000
major focuses. Furthermore, All-Japan           Total food and beverage spending
Kanko Rikkoku Fund, a JPY25 billion             by overseas tourists was JPY886                                        4,000
fund, was established in April 2018 by          billion in 2017, accounting for 20%
                                                                                                      JPY/person/day

a consortium of 60 companies such               of their total expenditures. In 2017,                                  3,000
as MUFG Bank, Sekisui House, JAL,               tourists from Hong Kong spent the
and regional banks. Combined with               most on food and beverage per
                                                                                                                       2,000
bank loans, the fund is expected to             person per day, followed by Singapore
provide a total of JPY100 billion in            and South Korea. According to the
financing for regional tourism projects.        Japan Foodservice Association,                                         1,000

Organisations like the aforementioned           restaurant sales2 in Japan have grown
DMOs should also be able to help                concurrently with tourism since 2011                                      0
effective allocation of capital.                and recorded about JPY19 trillion in
                                                2016. The story of the Osaka food
Overall, the inflow of tourists and             stall mentioned in the introduction
capital to regions should have a                also shows the huge potential of this                 Source: Japan Tourism Agency, Savills Research & Consultancy
positive impact on regional retail              category.
markets. Some cities may also be                                                                      GRAPH 12
able to utilise new resources to attract        Additionally, entertainment service                   Restaurant sales in Japan between
Japanese tourists, who are still by far
the largest source of tourism demand.
                                                expenditures by inbound tourists                      2008 and 2017
                                                amounted to JPY144 billion in 2017
Considering that depopulation is                                                                                       19,500
                                                with western tourists in particular
severe in some areas, however,
                                                spending more per person than the
consolidation of stores is likely to                                                                                   19,000
                                                average. Among Asian tourists, going
proceed, which, as with department
                                                to a Japanese hair salon, for instance,
stores, should create opportunities                                                                                    18,500
                                                is a popular experience as beauty
for surviving stores. Consolidation
of ownership could also progress                standards in Japan are widely admired                                  18,000
                                                in other parts of Asia.
                                                                                                         JPY billion

if J-REITs pick up underperforming
                                                                                                                       17,500
properties as high-yield assets.
                                                Moreover, these experience elements
Experiential retail                             are used for brand marketing. For                                      17,000

The importance of in-store experience           instance, Lexus Meets… Hibiya
                                                                                                                       16,500
has been widely discussed in the                opened in Tokyo Midtown Hibiya in
context of the looming threat of                March 2018 as a brand experience
                                                                                                                       16,000
e-commerce to brick-and-mortar                  facility; customers are able to
shops. Examples of Amazon Go, LINE              experience the Lexus brand through                                     15,500
FRIENDS stores, and the pop-up                                                                                                  2008 2009 2009 2010 2011 2012 2013 2014 2015 2016 2017
                                                2     Restaurants include various food and beverage
Mercari Café indicate that even online          functions such as cafes and bars.                     Source: Japan Foodservice Association, Savills Research & Consultancy

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Spotlight | Japan inbound retail                                                                                                                                             October 2018

  OUTLOOK
  The prospects for the market
  Overall, the momentum of inbound                     acknowledged the importance of                            However, Japan’s heavy reliance on
  tourism should continue, further                     tourism for revitalisation of local                       tourists from Asia could pose a risk.
  bolstered in the medium-term                         economies, facilitating the formation                     As illustrated by the impact from
  by the Rugby World Cup 2019,                         of DMOs and providing risk capital.                       China’s boycott of travels to South
  the 2020 Tokyo Olympics, and IR                      Tourism is now a major concern                            Korea, inbound tourism is susceptible
  development. Japan’s retail market                   for many entities as it has attracted                     to various external factors including
  should continue to be a beneficiary                  players from various industries, which                    political tensions. Natural disasters
  of this trend, although shifts in the                could accelerate further investment                       are also an inherent risk in the tourism
  shopping behavior of overseas                        as exemplified by All-Japan Kanko                         industry. A potential retreat of the
  tourists could cause some volatility                 Rikkoku Fund.                                             global economy might also put a
  in performance.                                                                                                temporary break on travel volumes in
                                                       Considering trends in tourist demand                      Asia. To mitigate the risk, it is essential
  As Japan’s hospitality industry                      for leisure activities, it is becoming                    for the country to diversify source
  grows larger, it will be increasingly                increasingly important for retail stores                  regions of tourists. Some cities might
  important to have long-term                          to offer experiences. Landlords are                       be able to use resources accumulated
  strategies to capture the growing                    likely to benefit from mixing specialty                   through inbound tourism to attract
  demand and diversified preferences                   restaurants and service-oriented                          domestic tourists for stable demand.
  of different nationalities. For                      tenants for added excitement. Having
  some regional cities, inbound                        local flairs should also add to the
  tourism might be the last clear                      uniqueness and authenticity that
  and immediate chance to break                        travellers seek. JTA’s vast and detailed
  the negative cycle of population                     disclosures should be helpful for
  outflows and declines in economic                    the formation of effective marketing
  activity. The government has                         strategies.

  Please contact us for further information
  Savills Japan                                              Savills Research

  Christian Mancini                                          Tetsuya Kaneko                              Simon Smith
  CEO, Asia Pacific                                          Director, Head of Research                  Senior Director
  (Ex Greater China)                                         & Consultancy, Japan                        Asia Pacific
  +81 3 6777 5150                                            +81 3 6777 5192                             +852 2842 4573
  cmancini@savills.co.jp                                     tkaneko@savills.co.jp                       ssmith@savills.com.hk

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