Japan's malls and restaurants brace for Olympics without foreigners
19/03/2021 05:10
By Daniel Leussink and Mayu Yoshida
TOKYO, March 19 (Reuters) - Shopping malls and restaurants
in Japan will miss out on a business boom, as Tokyo expects to
hold the Olympics without overseas spectators, dealing another
blow to industries already on the ropes from the coronavirus.
In the years leading up to the Games, developers have poured
billions of dollars into shopping and dining complexes to serve
an influx of foreigners, with major investments made in Tokyo's
central Shibuya district, iconic for its scramble crossing.
But the number of foreign visitors has dropped from nearly
32 million in 2019 to almost zero, causing the government to
halt a spending survey that showed their consumption that year
was worth $44 billion. urn:newsml:reuters.com:*:nL4N2JV12N
Now Tokyo 2020's expected decision to block foreigners from
attending the Games means a boost the service sector was
counting on to recover lockdown-related losses will not
materialise. urn:newsml:reuters.com:*:nL1N4L50DW
"There was so much development, with new buildings being
constructed, but people aren't coming at all," said Ryota
Himeno, an analyst at JP Morgan Securities Japan.
Up to eight million tourists visited Shibuya's bustling
clubs and cafes in 2019, and ward chief Ken Hasebe expected 10
million in 2020 before the coronavirus scuppered those plans.
Himeno says that projected growth prompted developers to
spend more than $2.8 billion in the district, which is also home
to some venues from the 1964 Olympics.
The most imposing of the new developments is Shibuya
Scramble Square, a 230-meter glass tower that has come to
dominate the skyline since opening in 2019.
Its developer, Tokyu Corp 9005.T , spent $1.1 billion on
projects in Shibuya in the three years through 2020.
"Our financial results are unfortunately expected to fall
into the red in the current period," said Tokyu's Ryosuke Toura,
with hotel businesses taking the biggest hit, followed by
railways and retail.
Across the Shibuya station, at Masaka, a vegan restaurant
inside Parco department store, which reopened after years of
renovation in time for the Olympics, foreign tourists used to
make up as much as half of the clientele.
Manager Yuta Namekawa is now pinning his hopes on growing
awareness of vegan food among locals, thanks in part to people
watching documentaries about the meat industry on Netflix.
"Part of the reason why the restaurant was opened was
because of the Olympics, so it's quite worrisome if that isn't
happening," he said. "It can't be helped."
(Reporting by Daniel Leussink and Mayu Yoshida; Additional
reporting by Nao Fujimoto and Yuki Matsubara; Editing by Antoni
Slodkowski and Gerry Doyle)
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