Yoshiharu Hoshino, CEO of Hoshino Resorts, presented under the auspices of the Columbia Business School on 1 April 2021 (Japan time). He described how, under an 18-month survival plan instituted in early 2020, “micro-tourism” customers had increased from under 10% of their facilities’ visitors to over 30%.
In the context of the collapse of Japan’s inbound tourism, table below, this has been an inspired, well executed pivot.
| Inbound visitors | |
| 2019 | 31.88 million |
| 2020 | 4.12 million |
| YoY | -87.1% |
| 2020 Jan-Feb | 3.75 million |
| 2021 Jan-Feb | 53,900 |
| YoY | -98.6% |
| Source: JNTO, Conceptasia, April 2021 |
“Micro-tourism” refers to those able to access the facility without using airlines or the major train companies. The major transportation providers have not allowed passengers with a high fever to board, introducing the risk of becoming stranded if one becomes sick.
Hoshino Resorts, by delivering on anti-infection measures, and visibly demonstrating the associated increased costs to customers, has been able to maintain prices.
With local public festivals cancelled, marketing has highlighted the cultural and craft orientated activities available at their resorts. Customers who usually holiday overseas have also been targeted emphasizing the unique experiences on offer.
| Japan’s tourism market | |
| Inbound | US$44 billion |
| Domestic | US$204 billion |
| Total | US$258 billion |
| Outbound | US$11 billion plus |
| Source: Hoshino Resorts, Conceptasia, April 2021 |
Surveys suggest an ongoing cautiousness amongst Japanese even for domestic travel. For example, as discussed in a Nippon.com article of the 9th March 2021 here.
We believe inbound tourism reached maturity in 2019. The analysis is available here:
The ability to innovate is essential to survival, in our opinion.
Hoshino Resorts is an example of this ability being put into practice well.