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Kobe Bay Area Luxury Hotel and Tourism Development

May 14, 2008

The scenic Kobe bay area is the site of a unique development plan, including luxurious suites and hotels which will fit in well with the area's current trendy and chic image.

By spring 2010 seven new hotels are expected to be built, which upon completion would have a total of 1000 guest rooms. These developments seem to have been influenced by the 2006 opening of the Kobe airport, but some local hotel owners are concerned of an excess supply of rooms relative to the number of guests they've seen.

The seven new hotels are all planned to be built in the bay area south of the Japan Rail Tokaido line. The same area was the site of the historically significant foreign settlement area which had a strong European presence and the Kobe financial area. However in the years following the great Hanshin earthquake which leveled much of the area, the bay area has become quite a popular and trendy locale with name brand stores and fashionable restaurants setting the scene.

In February 2005 the Kobe bay area rejuvenation plan was launched, including the rebuilding of the old foreign settlement area as a sort of historical landmark. To match the rebuilding of historical monuments will be other developments such as a 380 room hotel, a sports center and a movie complex. In addition the bay area will be the site of 'Harbor Land' which will include a 70 suite luxury hotel complex.

Among the new hotels being built is a 13 storey 384 room structure in the image of a large ship. The hotel is not just a hotel, but also a wedding center and a sports complex. According to those close to the hotel's planning, they are quite enthusiastic about building an institution that is not only for tourists but which will also be inclusive of locals who wish to make use of the facilities for their enjoyment.

One kilometer away an 8 storey 54 room concept hotel is being built with a focus on business clients and those going between Osaka and Kobe. Adjoining this hotel is a 70 room suite with terraces where guests can enjoy the view overlooking Kobe bay. A one night stay in these luxury rooms will cost between ¥50,000 to ¥80,000. Guests can enjoy their evening while taking in the night view of the city from the large Jacuzzi, then have dinner in the lounge or visit an esthetic salon on the 11th floor.

According to a survey done by the Kobe branch of the Bank of Japan, room occupancy in the area increased by 8.7% between 2002 and 2007. Setting the scene for these developments and increasing occupancy numbers is the previous developments of the Kobe airport and the increase in number of bullet trains through Japan Rail Kobe station. Along with this is the weak Japanese yen relative to neighboring countries which has lead to an increase in foreign tourists. A source in the hotel industry remarked that in some cases they have seen a 50% increase in foreign guests this year compared to last year.

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