For many years, the BC Wood Japan Office has been researching and developing contacts in the flourishing resort market as Japan has become both a top international travel destination as well as the mecca for powder snow. The strong post-COVID inbound tourism sector is now one of the main drivers for new hotel as well as commercial construction. By the end of September, both the total amount of tourist spending and the number of visitors had reached the levels for all of 2023. If this pace continues through to the end of December, Japan is predicted to set a new record of over 35 million visitors for 2024, far eclipsing the 31.8 million who came in 2019 just before the pandemic. Weather agencies are forecasting well above average snow accumulation for this winter, which should further cement Japan as the international skiing destination.
Until recently, most of the focus has been on Hokkaido, in particular the Niseko area. Even with new facilities coming online, most winter accommodations are booked out a year in advance. More significantly, the new facilities keep targeting higher and higher tiers of the international ski market. Japanese media was abuzz last winter as foreigners slurped down $35 bowls of ramen in Niseko, while the average price in Tokyo is under $10. However, even more shockingly are the nightly rates to stay in the area. The first Australian skiers who “discovered” the unlimited powder here were equally attracted by B&Bs charging under $50 a night. Now, $1500 a night is the norm for condo type accommodations, but prices are quickly escalating into the stratosphere targeting the world’s wealthiest who arrive by private jet with a full entourage. Such VIP guests can now find the best of the best in Niseko, while paying USD$30,000 a night for a minimum 7-night stay. Yes, that is USD$30,000 a night. The resort homes that are being built now to service this market are on the USD$20-30 million range and there are many in the pipeline along with new high-end hotels.
Part of the reason for this price inflation in Niseko is that most of the ski-in ski-out areas with the signature views of Mt Yotei have been secured by major developers already. The companies have 10s of thousands on units in planning stages, but other developers looking into the Japanese skiing phenomenon are looking at other areas like in Niigata, Tohoku, and Nagano. Another approach is for these investors to target non-snow resorts for those wealthy clients that are more interested in Japan’s famous sunsoaked seaside areas. The semi-tropical islands of Okinawa have long been Japan’s Hawaii, but new luxury projects there actually are rivalling what we see in the middle of the Pacific. All of this bodes well for high-value Canadian wood products.
As for the traditional housing segments, speaking with pre-cutters, distributors, and importers, we are also hearing that business volumes have been recovering since the summer. Data provided by industry media shows that high-end, custom home starts have been increasing every month since April and this is the key, target market for many of our members’ products. The main driver of this strengthening is that consumers are coming off the sidelines as they realize that the new, higher home construction costs are here to stay, so there is no longer any point in trying to wait for a reversal.
The best way for members to take advantage of both the resort and regular housing markets is by exhibiting with BC Wood at the 2025 Nikkei Architectural and Construction Materials Show from March 4th to 7th. As the biggest construction industry trade show in Japan, it covers everything from lumber to finished products. Nikkei attracts large numbers of architects and designers working on commercial projects, so it is a great event to promote high value wood products and finishing materials to the hospitality market. During the 2024 edition, this show welcomed over 200,000 industry participants over its four days.
BC Wood will once again be organizing the Canadian Pavilion at Nikkei Messe on behalf of industry. BC Wood will help take the stress and uncertainty out of exhibiting at the show by assisting with all the logistics required for setting up your display, including the design and the preparation of Japanese language marketing materials.
Also, doing a trade show with the BC Wood Japan Office’s support is very different than exhibiting somewhere on your own. First of all, we maintain a database of over 20,000 industry contacts in Japan. We leverage this database to specifically find potential clients who are interested in your products. We then engage these contacts on your behalf well before the show ever starts. That way, you will have four days of qualified meetings at the show pre-scheduled for you. We further promote your company by rolling out an aggressive online campaign prior to the Nikkei Show that reaches over 8000 industry people subscribed to our Japanese eNewsletter as well as our SNS audience in Japan.
Please contact me at [email protected] and we can set-up a time to chat about this year’s program and how BC Wood can help you expand your business opportunities in the Japanese market. If you want to enter the Japanese market or expand your presence here, this is the show that you want to be at.