The New Years’ holiday during the first week of January is always a special time in Japan, both to gather with family and also to look optimistically at the 12 months ahead. 2025 is the year of the snake and according to Kyoto City’s official travel website, “the year of the snake is considered to be a year of change and development, during which one’s hard efforts will come to fruition.” With everything happening in the world these days, “change” seems to be a very fitting theme.
Capitals around the world are in particular bracing for the economic “changes” soon to be emanating from Washington, and there is great concern in Tokyo as well for its export industries. However, Japan’s overall economic prospects have started out the year on a positive note. The Nikkei average finished 2024 with its highest year-end closing in history, topping even the bubble-era peak. Despite that total starts are projected to be down around 3% for 2024, the housing market improved in the second half of the year with higher-end custom housing in particular had a strong year, growing 5% over 2023. Deflation is in Japan’s rearview mirror and salaries are being raised across all industries to keep up with the new inflationary environment.
Inbound tourism has been one of the hot spots in the Japanese economy. The previous record was 31.88 million in 2019, but 2024 will set a new one with the number of visitors tracking to reach 35 million. Weather agencies had been forecasting well above average snow accumulation for this winter, and it has already been record breaking in many areas. Japow is delivering great experiences for the all of the ski resort visitors, which is being broadcast around the world on all SNS channels. This should further cement Japan as an international skiing mecca and thus further energize investments in resort areas.
The Osaka 2025 Expo will further expand interest in Japan from around the world and drive the number of visitors higher for years to come. The biggest concern for the industry is now being able to meet this demand from both a facilities and workforce perspective. New Western hotels are coming online in Japan and specifically targeting high-end travelers. For example, the Hilton group is opening a Waldorf Astoria in Osaka in time for this year’s Expo, with Conrad Hotels opening in Nagoya and Yokohama in 2026 and 2027 respectively. Hilton has also bought two properties in Niseko. Interest has also expanded to non-snow destinations such as hot spring or seaside villages across the entire country. Architectural firms that have been working in Niseko are now being asked by their clientele base to design properties even in sub-tropical Okinawa. The Four Seasons Resort and Private Residences Okinawa is scheduled to open in 2027 with over 100 acres of beachfront encompassing 120 hotel rooms, 120 residences, as well as 40 villas.
While these changes can lead to good fortune, the proverb notes that hard work is still needed to realize those opportunities. BC Wood strives to make that work for members a little easier when it comes to market development through our in-market programs. Our first show in the year of the snake will be the Housing Brand Fair in Seoul from January 22nd to 25th and we have a great line-up of members going over for that. From March 4th to 7th, BC Wood will be at the Nikkei Architectural and Construction Materials Show, which is the biggest construction industry trade show in Japan and targets the commercial construction sector.
If you are interested in learning more about our programs in Asia, please contact me at [email protected] and we can set-up a time to chat about how BC Wood can help you expand your business opportunities.
