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Japan converts offices to hotels as tourism surges

Japan has emerged as an attractive tourist destination. The weaker yen and hassle-free visa application from some countries continue to drive tourism. The country is even on track to surpass its record of 13.4 million tourist arrivals in 2014 this year. Japan aspires to attract 20 million visitors by 2020 as Tokyo plays Olympics host. The rising tourist influx has become a cause for concern due to a hotel crunch. Japan’s answer to this is the conversion of office buildings into hotels to save high construction costs. For instance, B-lot – a 28-year-old office building in Tokyo – has been converted to a hotel called First Cabin. Here a “business-class cabin” with a single bed costs about USD46. The idea is still in its infancy, but the potential lies in major cities where hotel demand is strong. This is evident, as the lowest-ranked business rooms in Tokyo have seen a rise of 11.7% in cost since 2014. Will conversion of offices into hotel rooms help achieve Japan’s 20

Can Japan use the weaker Yen to gain market share in global railway projects?

European investors are showing keen interest in railway projects in the Middle East and North Africa – estimated to be worth USD300 billion. The Middle East’s market for railway equipment has been largely dominated by European producers of railway cars and facilities. Chinese investors are not far behind. Japan, on the other hand, continues to lag. Although the Japanese are far more advanced in railway technology, their success in winning railway projects abroad is poor, reflecting the preference of many Japanese companies to choose projects only in Asian markets. Qatar presents an up-and-coming test case. To host the 2022 FIFA World Cup, Qatar will need four lines covering Greater Doha. Japanese vendors are vying for the project. One advantage the Japanese now have is the weaker Yen versus the US dollar and Euro. Will Japan be able to harness the First Arrow of Abe-nomics to gain railway market share in the Middle-East and globally? https://www.spireresearch.com