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