Nagoya’s 2 billion Yen lure for luxury hotels

In an effort to attract luxury hotel brands, Aichi Prefecture and Nagoya City governments are both considering offering subsidies that will total up to 2 billion Yen (approx. 18.5 million USD). 

At a press conference held on June 20, the Aichi Governor expressed a need for high-end hotels in order for Nagoya to develop as an internationally-competitive city. According to the Travel Weekly magazine, Tokyo has 50 high-rated hotels with a total of 1,104 suite rooms, and Osaka has 18 high-rated hotels with 352 suites. Nagoya City has just 8 of these hotels with just 67 suites.

It is hoped that the potential assistance payment would help reduce the high burden developers face when constructing luxury accommodation. It wouldn’t be a first, with Yokohama currently offering a subsidy of up to 5 billion Yen (approx. 46 million USD) for developers of luxury accommodation around Yokohama Station.

A decision by city and prefectural governments is expected to be made later this year. 

Sources:
The Nikkei Shimbun, June 20, 2019.
The Mainichi Shimbun, June 21, 2019.
The Asahi Shimbun, June 25, 2019.