Chinese Company to Invest in Tourist Resort in Japan
Hordes of Chinese tourists who loved to visit Japan is well known, but Chinese companies desire to invest in Japan is not that well known. For example Shanghai Yuyuan Tourist Mart Co Ltd. announced last November that it has acquired 100 percent stake in Hoshino Resorts Group 11 year old, 25 track and 757 room ski resort Tomamu that is located the northern most part of Japan for around 18.36 billion yen. Shanghai Yuyuan Bought out the 80 percent stake from Matakite BV a Dutch investment fund while the remaining stake was bought from Hoshino Resorts Inc.
The resort stated that the acquisition took effect on December 1, but will continue to operate the resort as Shanghai Yuyuan is still making strategic plans and provide financial support that will make Resort Tomamu the top tourist destination on Hokkaido. The ski resort also has an 18 hole golf course and a church built on water that was designed by well kwon architect Tadao Ando. The resort’s turnover has increased after a renovation in 2013, where the compound annual growth of sales in the past five years have reached ten percent and is operating profit was as high has 43 percent. Then in 2014 the Resort recorded a net profit of 701 million yen on a sale of 6.14 billion yen.
The Hokkaido Tourism Organization was delighted on Shangahi Yuyuan $150 million bet o n the resort that is the first big ticket Chinese investment on the Japanese island. The Hokkaido Tourist Group said that a growing number of Chinese corporate buyers are making inquires on property prices in Hokkaido but their reasons are unclear. One reason why Shanghai Yuyuan is interested in Hokkaido is that the island had become one of the most popular destinations for Chinese tourists especially during skiing season.
Aside from hotels, skiing, catering and other kinds of outdoor activities, profit can be seen as more Chinese tourists are introduced to the resort since Shanghai Yuyuan already reached its domestic market. Furthermore advanced management system experience will be of great value to Shanghai YuYuan as the company looks into enhancing its service quality.