Asia’s leading alpine destination Niseko has received a year-on-year increase of 17%, with an impressive 16% CAGR. A push to a year-round marketplace is a clear indicator of market maturation.
Last year, Niseko reached its record-high of 1,676,300 visitors, because of the large connectivity of regional flights. Its top 5 source markets are Hong Kong, Singapore, Taiwan, Korea and Mainland China, especially with the latter gaining from direct flights from 8 cities into the New Chitose Airport.
The number of Travellers from Thailand to Niseko has been effectively doubled with Thai AirAsia X introducing its direct flights in April, leading to a large investment of Property Perfect PCL’s investment to the Kiroro Resort, which has recently launched its first condominium project Yu Kiroro.
Another sector receiving a direct impact from tourism is the property sector. According to recently published data by C9 Hotelworks in their Niseko Market Review, the transaction value of resort property real estate developments is predicted to spark a USD 1 billion mark over the next two months.
“Given high land values and elevated country-wide construction costs which have been impacted by the build up to the 2020 Tokyo Olympics, it’s extremely hard to underwrite sole hotel developments.
Projects like Hong Kong’s PCPD Groups’ upcoming Park Hyatt Hotel and Residences has mitigated the situation by selling managed residences as part of the hospitality offering. A similar scenario is playing out at the Niseko Village integrated resort where the Malaysian-based owner YTL is planning a similar Ritz-Carlton Hotel and branded real estate combination.” C9 Hotelworks Managing Director Bill Barnet remarked.
The recent legalization of Airbnb-type rentals via the ‘Minpaku’, a tourism program that allows visitors to stay with local Japanese families, is positively viewed by the regional tourism community as a legitimate solution to managing non-conventional accommodation is now set in place.
To read the full report of Hotelworks Niseko Market Review, visit https://www.c9hotelworks.com/downloads/niseko-japan-property-market-review-2018-06.pdf