A Strategic Shift from Volume to Value
As Japan’s tourism industry moves beyond its recovery phase, a major player in the Kansai hospitality scene is signaling a significant change in direction. Takaaki Nitanai, President of ORIX Hotel Management, has outlined a new strategy for 2026, pivoting away from a focus on quantitative recovery towards the creation of high-value, experience-based tourism. This move reflects a broader trend in the Kansai region, particularly in Osaka, as it prepares for a future defined by quality over quantity.
The Context: A Post-Pandemic Tourism Boom
To understand the significance of this strategy, it’s crucial to look at the current landscape. Japan has witnessed a remarkable rebound in international tourism. According to the Japan National Tourism Organization (JNTO), the number of international visitors reached over 25 million in 2023, recovering to approximately 80% of the pre-pandemic levels of 2019.
More strikingly, tourist spending has already surpassed previous records. The Japan Tourism Agency reported that spending by international visitors in 2023 hit a record-high of 5.3 trillion yen (approximately $35 billion USD). This surge is driven by a higher per-capita expenditure, indicating a growing demand for premium products and unique experiences. This economic backdrop provides the perfect stage for ORIX’s strategic pivot towards high-value offerings.
ORIX’s Vision: Unique Experiences and Regional Revitalization
President Nitanai’s new year’s address emphasized that the company, which operates prominent Kansai facilities like Cross Hotel Osaka and Hotel Universal Port, will focus on enhancing the unique appeal of each property. The strategy aims to cater to a diverse range of guest needs by leveraging the distinct characteristics of their portfolio, which includes modern hotels and traditional Japanese inns (ryokan).
The core of the 2026 plan is to transform each hotel from a simple place to stay into a destination in itself. This involves:
- Curating Unique Experiences: Moving beyond standard amenities to offer experiences deeply connected to local culture, cuisine, and history. This could include exclusive culinary workshops, guided art tours, or wellness programs rooted in Japanese traditions.
- Personalized Hospitality: Tailoring services to individual guest preferences, ensuring a memorable and personalized stay that mass tourism often fails to deliver.
- Contributing to the Region: Strengthening ties with local communities to offer authentic experiences that also support and revitalize the regional economy. This positions their hotels as gateways to the deeper culture of Kansai.
Future Impact: What This Means for Travelers to Kansai
ORIX’s strategic shift is expected to create a ripple effect across the Kansai tourism industry.
The Dawn of Premium Travel
Travelers can anticipate a new wave of premium accommodation options. This doesn’t just mean luxury in the traditional sense, but rather a focus on authenticity, exclusivity, and immersive cultural engagement. While this may lead to a rise in average accommodation prices, the value offered in return is expected to be substantially higher.
A Catalyst for the 2025 World Expo
This strategy is perfectly timed with the upcoming Expo 2025 Osaka, Kansai. The global event is projected to attract millions of visitors, including many high-spending tourists seeking exceptional experiences. By positioning themselves as providers of high-value stays, ORIX and other hotels following suit will be well-equipped to capture this lucrative market.
A More Sustainable Tourism Model
The shift from “mass” to “value” also addresses growing concerns about over-tourism in popular areas. By encouraging travelers to engage more deeply with a location, this model promotes a more sustainable and respectful form of tourism that benefits both visitors and the local community.
For visitors planning a trip to Osaka and the wider Kansai region, this signals an exciting evolution. The future of travel here is not just about seeing the sights, but about experiencing the soul of a region through hospitality that is both innovative and deeply rooted in its unique cultural heritage.
