Fairlane Hospitality, the hospitality arm of property developer Low Yat Group, has tied up with Japan’s Tsuruga Group to widen its hospitality offerings in Niseko, Japan.
The collaboration will help boost occupancy rates at Low Yat’s luxury ski serviced apartment, Shiki Niseko, in Niseko.
Tsuruga is a well-known hospitality group in Hokkaido and manages 11 hotels around Hokkaido Island, where Niseko is located.
The tie-up will allow Fairlane to tap into Tsuruga’s extensive network in Niseko.
“The collaboration will definitely help fill occupancy during the slow summer months. Our partners are strong in the domestic market and we need their connections during those months,” said Fairlane area general manager N.K. Yeoh.
Low Yat had ventured into Japan in 2009 with the development of Shiki Niseko.
In 2012, Fairlane tied up with Tokyu Resort Group, a member of Tokyu Land Corp Japan, to co-manage the resort.
Shiki Niseko, which comprises 68 units of fully-furnished apartments, officially opened for business in January last year and Yeoh noted that occupancy has been encouraging so far.
“Occupancy at the resort is about 60% during the peak winter season from January to March. The slower months, from April to November, see about 25% to 30% occupancy,” Yeoh said.
Fairlane has been working with the local tourism board to promote Hokkaido as a tourism and business destination after tourist arrivals at the island fell drastically following the massive earthquake in March 2011.
“But tourism statistics have been showing a healthy increase over the past year. We saw Malaysian arrivals in Niseko increase by 170%,” said Low Yat executive director Low Su-Ming.
The collaboration with Tsuruga enables Shiki Niseko’s guests to utilise Tsuruga’s facilities and services and vice versa.
Shiki Niseko is also offering summer packages to maintain steady business all year round.
Should business pick up at Shiki Niseko, Yeoh said Low Yat may mull over the idea of a second property in Japan.
“If the trend continues, we won’t hesitate to look into a second property. But Shiki Niseko is still new and it is too early to say where we wll go from here,” Yeoh said.