HIROSHIMA -- A project is under way to build a luxury hotel with a large hall in Hiroshima, with the aim of increasing the number of international conferences held in the city.
It is said that few international conferences are held in Hiroshima, even though the city is known throughout the world for its advocacy of peace. There is a shortage of luxury hotels in central Hiroshima, and the prefectural government hopes constructing such properties will lead to an increase in consumption driven by foreign tourists.
Cities fiercely compete to host international conferences. "We want to promote the city in the future by attracting more influential politicians and researchers from abroad," said a prefectural government official.
The 6,400-square-meter site is currently occupied by the Hiroshima-Higashi Police Station, the Hiroshima prefectural women's general center and other entities, which will move to new locations. It is about 1.7 kilometers southwest of Hiroshima Station.
Setouchi Brand Corp., a tourist business support firm, and other organizations established a special purpose company (SPC) to manage the building and land rights for all properties on the vacant site.
The prefectural government worked with the SPC to choose a hotel operator through public bidding, eventually selecting Hilton Worldwide Holdings Inc. on June 5. The hotel will open in 2022.
The project is estimated to cost about 20 billion yen to 30 billion yen. The prefectural government expects 450 people will be newly hired for the project, creating economic ripple effects of about 5.26 billion yen.
To attract international conferences, municipalities are said to need highly acclaimed hotels worthy of an international city that can host meetings with more than 1,000 attendees.
Participants in international conferences reportedly stay longer and spend more than ordinary tourists. According to the Hiroshima Convention and Visitors Bureau, a public interest incorporated foundation, and other sources, attendees of international conferences in Hiroshima spend about 40,000 yen per capita, or about twice as much as ordinary tourists.
The number of international conferences and other events hosted in Hiroshima rose from 37 in 2012 to 76 in 2016. The figure ranked 12th among Japanese cities in 2016, up from 13th in 2012. However, the 2016 figure was only about 20 percent that of second-ranked Fukuoka, which hosted 383 such conferences, and 70 percent of 10th-ranked Kitakyushu, which hosted 105.
The 2016 figure for Kitakyushu is more than double its 2012 total of 45.
"We were able to produce results because we invited even small international meetings with less than 100 participants," said a Kitakyushu city government official in charge of related matters.
The Hiroshima city government has subsidized conferences with at least 300 participants to attract midsize conferences. This fiscal year, it began offering subsidies to small conferences with at least 100 participants.
The Japan Tourism Agency said it expects competition among cities for international conferences to enhance awareness of the appeal of the entire country.
"Hiroshima can compare favorably with other cities in the world in terms of high international recognition as a peace-oriented city and its abundance of tourist resources," said an official with the Hiroshima prefectural government's tourist promotion division. "The plan to build a luxury hotel will also be effective in attracting conferences. We want to promote Hiroshima in cooperation with existing facilities."
"There are many benefits to inviting even midsize and small conferences, as such efforts build networks between local businesses and foreign enterprises. It's important to properly consider the purpose of inviting conferences, among other aspects, and to promote local characteristics," said Noriko Yagasaki, a professor of tourism policy at Toyo University.
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