GUNMA, Sep 24, 2025 (News On Japan) - Inbound tourism to Japan rose nearly 20% from January to August 2025 compared with a year earlier, though most visitors continue to flock to major cities, raising concerns about overtourism.
To ease the concentration, companies are turning to nature tourism, with mountain resorts emerging as a potential draw. In September, Hoshino Resorts opened “LUCY,” a hotel for climbers in Oze National Park, aiming to channel tourists toward the country’s natural landscapes. Hoshino Yoshiharu, CEO of Hoshino Resorts, and Ishinabe Hitomi, an editorial committee member at the Nikkei, discussed the potential of mountain resorts.
LUCY, the company’s sixth brand, was designed to combine the rustic charm of a mountain lodge with the amenities of a modern hotel. The 25-room property, located in Gunma Prefecture, offers private sleeping quarters, showers, heated toilets, Wi-Fi, and meals, with rates starting at 10,050 yen per night for two people. The name “Lucy” was inspired by British traveler Isabella Lucy Bird, who toured Japan in 1878 and later published a book translated into Japanese as “Unbeaten Tracks in Japan.” Hoshino said he sees Bird as one of Japan’s earliest inbound travelers and sought to carry forward her spirit of exploration.
Traditional mountain huts in Japan, of which there are more than 300, have long supported climbers by providing shelter and contributing to safety, but many lacked privacy and modern facilities. Hoshino said his company identified a substantial market of travelers who wished to enjoy Japan’s mountains but were put off by such inconveniences. LUCY promises six services—privacy, Wi-Fi, modern toilets, convenient amenities, quality meals, and showers—that address the gap.
Ishinabe noted that mountain huts have historically been seen as facilities for seasoned climbers, with limited appeal to beginners or women. The addition of privacy, cleanliness, and modern conveniences could lower barriers and attract new visitors. “For younger generations, the availability of conveniences like heated toilets has become a decisive factor in choosing housing or workplaces,” he said, adding that this approach is well-matched to current expectations.
Hoshino pointed out that in Europe’s Alps or in North America, mountain lodges often provide private beds and meals, widening the appeal of nature tourism. Japan, however, has lagged behind in this area. Domestic hiking numbers surged briefly around 2009 during a “mountain girl” fashion trend, but overall participation has been declining. According to Hoshino, early bookings for LUCY show promise: visitors in their 20s to 40s, who previously accounted for 38% of guests in Oze, rose to 54% after the hotel opened, suggesting that the new format is drawing younger demographics.
The broader challenge is that most foreign visitors remain concentrated in just five prefectures, accounting for over 70% of total overnight stays. Mountain resorts in less-visited prefectures have yet to benefit significantly from inbound tourism. Hoshino stressed that strengthening nature tourism is crucial for Japan to become a true tourism-oriented nation. “Japan is strong in cultural tourism, but weak in nature tourism,” he said. “If both can be developed, it will ease the concentration in cities and strengthen the tourism economy nationwide.”
Foreign investors are also showing interest in Japan’s mountain resorts. Singapore-based real estate fund Patience Capital Group plans to invest 200 billion yen in developing hotels and commercial facilities in Myoko, Niigata Prefecture, a winter sports hub. Its goal is to replicate Whistler in Canada, where summer attractions such as cycling and hiking rival winter crowds. Hoshino, while supportive, noted that developing year-round demand is not easy, with mountain biking being a key challenge in Japan compared with North America.
The Japanese government is pushing to expand accommodation options in national parks to enhance their appeal and boost inbound tourism. Whether this strategy succeeds will depend on efforts by both domestic operators like Hoshino Resorts and foreign investors to diversify Japan’s tourism beyond its crowded urban centers.
Source: テレ東BIZ
