Located at the heart of Hokkaido, the Furano area continues to draw tourists from both Japan and abroad with its lavender fields and high-quality powder snow ski resorts. Against a backdrop of growing tourism demand and an insufficient supply of accommodations, investment in lodging facilities in Furano has been attracting attention from real estate investors and those interested in inbound tourism business. This article examines the reality of accommodation demand in and around Furano (Biei, Shimukappu, and Tomamu), along with its potential as an investment target, using concrete figures and case studies.
The Furano area enjoys two major peak seasons—summer lavender season and winter ski season—making it one of the rare tourist destinations that can expect stable visitor numbers throughout the year. In recent years, the increase in foreign tourists, particularly from Asia, has led to a situation where existing accommodation facilities simply cannot absorb all the demand.
This area, dotted with distinctly different tourism assets—the rolling hills of Biei, the nature experiences of Shimukappu Village, and Hoshino Resorts Tomamu—has seen its accommodation offerings diversify accordingly. Hotels, pensions, cottages, private lodgings (minpaku), and other formats all have fertile ground here, making a wide range of investment schemes viable.
Tourism Data Supporting Accommodation Demand in the Furano Area
Trends in Annual Visitor and Overnight Guest Numbers
Furano City’s annual number of visitors hovers around 1.9 to 2 million, while neighboring Biei Town attracts over 1.5 million tourists annually. In terms of overnight guests specifically, Furano City sees approximately 400,000 guest-nights per year, and Biei Town roughly 150,000 guest-nights. While the ratio of day-trippers is high, there is still solid and steady demand for overnight stays. Shimukappu Village, home to Tomamu Resort, receives around 600,000 visitors annually, with a notably high proportion staying overnight.
What’s particularly noteworthy is the proportion of foreign guests. Across the Furano area as a whole, foreign visitors now account for roughly 20-30% of overnight guests, and it’s not uncommon for some properties to see this figure exceed 50% during peak season. Travelers from Australia, Taiwan, Hong Kong, and Singapore are especially prominent, concentrating in winter for the powder snow and in summer for the flower fields and natural scenery.
Seasonal Demand Characteristics
Summer (late June through August) marks the peak season for flower field tourism centered on lavender, during which occupancy rates at accommodations in the Furano and Biei areas exceed 90% for consecutive days. During the lavender’s peak bloom in mid-July in particular, it’s common for bookings to be fully sold out even a month in advance. Nightly rates rise during this period as well, with even standard pensions commanding ¥15,000–¥20,000 per person per night.
Winter (December through March) centers around the Furano and Tomamu ski resorts, generating substantial demand from long-staying foreign skiers. At Tomamu in particular, the average length of stay is 4-5 nights, driving noticeably strong demand for condominium-type accommodations. Spring (April-May) and autumn (September-November), on the other hand, are off-peak seasons, with occupancy rates at some properties dropping to as low as 30-40%. Annual revenue planning must account for this seasonal fluctuation.
Why Accommodation Investment Near Furano Is Drawing Attention
Supply Shortage and Room for New Entrants
Furano City is estimated to have only around 1,500 hotel and inn rooms in total, which clearly falls short of peak-season demand. Biei Town’s total room count stands at just a few hundred, and during busy periods, it’s not unusual for tourists to travel all the way back to Asahikawa City to find lodging. This supply gap represents a significant business opportunity for new market entrants.
Compared to the Niseko area, large-scale development by foreign capital has yet to take full hold around Furano, leaving room for individual investors to enter the market through small-scale whole-building rentals or cottage-type accommodations. While land prices in Niseko have soared to ¥100,000–¥300,000 or more per tsubo, areas around Furano still offer land at ¥10,000–¥50,000 per tsubo, making entry with a modest initial investment quite realistic.
The Balance Between Property Prices and Yield
Used pensions and small-scale accommodation facilities in central Furano City are sometimes listed for sale in the range of ¥20-50 million. For a property expecting annual revenue of ¥8-15 million, the calculated gross yield reaches 15-30%. Of course, actual net yield decreases once expenses such as repair costs, management fees, and utilities are factored in, but even so, this remains a highly profitable proposition compared to urban studio apartment investments (net yield of 3-5%).
In the mountainous areas of Biei and Shimukappu, older properties with land are often available for ¥5-15 million, and there are cases where accommodation businesses were launched with a total investment under ¥30 million, even after factoring in renovation costs. Such properties are often blessed with beautiful natural surroundings, and when operated as whole-building private lodgings, nightly rates of ¥30,000–¥50,000 are entirely achievable.
Investment Characteristics of Biei, Shimukappu, and Tomamu Respectively
Characteristics of the Biei Area
Biei is a member of the “Most Beautiful Villages in Japan” association, and its greatest appeal lies in its hilly landscapes. With year-round attractions such as the Blue Pond and the Patchwork Road, the area draws travelers with strong hobbyist interests, such as photographers and cyclists. As accommodations, whole-building villas and photogenic cottages that showcase the scenery have earned high praise.
From an investment standpoint, it’s important to note that Biei Town has established landscape ordinances that restrict building exteriors and heights. However, this regulation also has the benefit of protecting the area’s overall brand value, lowering the risk of value erosion from unchecked development. The typical investment amount per property runs ¥15-40 million, and the revenue structure tends to concentrate 60-70% of annual income into the high-occupancy summer season.
Characteristics of the Shimukappu and Tomamu Area
Hoshino Resorts Tomamu, located in Shimukappu Village, is a large-scale resort nationally known for its cloud sea terrace and ski slopes. Around Tomamu, demand exists both from resort employee housing needs and from tourist accommodation needs. In winter, demand from long-staying ski visitors is particularly strong, and bookings of a week or longer are not unusual.
A notable point about the Tomamu area is its excellent accessibility—about 90 minutes from New Chitose Airport via JR limited express. While Furano and Biei rely on Asahikawa Airport as their nearest access point, Tomamu offers superior direct access from both outside Hokkaido and overseas. Potential investment approaches include operating a sectioned unit of a resort condominium as short-term accommodation, or building new cottages on surrounding land. Some sectioned units are available at relatively low prices of ¥3-8 million, though investors should carefully weigh the burden of management fees and repair reserve funds against the risk of aging infrastructure.
Practical Points to Consider When Investing in Accommodations in Furano
Confirming Permits and Legal Regulations
Operating an accommodation facility requires either a simple lodging business license under the Hotel Business Act, or a notification filing under the Private Lodging Business Act (the “minpaku” law). Obtaining a simple lodging business license allows for year-round operation with no limit on annual operating days, but requires meeting equipment standards such as fire safety systems and front-desk functions. Under the minpaku law, operating days are capped at 180 per year, which can significantly impact revenue planning if operation is limited to peak seasons only.
In Furano City and Biei Town, certain zoning designations restrict the construction of accommodation facilities in specific areas, so it’s essential to confirm details with the local government’s urban planning division before acquiring a property. Additionally, don’t overlook infrastructure-related checks unique to rural areas, such as septic tank installation requirements and the status of water supply connections. In one actual case of an investor opening a business in Biei, an additional ¥1.5 million was required for a new septic tank and about ¥800,000 for water supply connection.
Operational Structure and Management Costs
When operating an accommodation facility in a remote location, building a solid on-site management structure is key to profitability. Handling cleaning, linen changes, guest support, and facility maintenance on your own is simply not realistic unless you live nearby. When outsourcing to a management agency, fees typically range from 10% to 30% of revenue (varying depending on the company and scope of services entrusted).
In the Furano area, snow removal in winter is also a significant cost factor. It’s common to contract snow removal services for ¥30,000-80,000 per month, with additional costs arising in years of heavy snowfall. Furthermore, during the depths of winter when temperatures can drop below -20°C, electricity must be kept running to prevent water pipes from freezing, meaning winter utility costs are often 2-3 times higher than in summer. Understanding these region-specific running costs in advance and reflecting them in your annual budget is key to a successful investment.
Thinking Through Your Exit Strategy
When investing in accommodation facilities, it’s important to keep sight not only of operating income (income gain) but also of future resale value (capital gain). In the Furano area, interest from overseas investors is rising, positioning it as a “second resort investment area” following Niseko’s footsteps. With the right location and property condition, there are realistic cases where selling above the original acquisition price is achievable.
That said, real estate in rural tourist areas tends to have low liquidity, and it’s not unusual for a sale to take six months to a year or more to complete. A sound approach is to plan for an investment horizon of at least five years, with a solid portion of the investment recouped through operating income during that time. To maximize resale valuation, it’s essential to accurately record and manage occupancy performance and revenue data.
For Accommodation Management in the Furano Area, Consult Stay Buddy Inc.
Accommodation investment in and around Furano holds significant potential, thanks to solid tourism demand and reasonably priced real estate. However, practical aspects—such as obtaining the necessary permits, managing on-site operations including winter preparedness, running booking platforms, and providing multilingual guest support—require specialized know-how.
Stay Buddy Inc., a vacation rental management company, offers comprehensive, one-stop support ranging from property selection advice to permit acquisition assistance and day-to-day operational management. We’ve built a system that allows even remote owners to operate their lodging business with peace of mind, and we can offer proposals grounded in extensive experience for pricing strategies and marketing initiatives aimed at maximizing revenue.
If you’re considering an accommodation investment in the Furano, Biei, Shimukappu, or Tomamu areas, please feel free to reach out to Stay Buddy Inc. first. We’ll provide advice tailored to your specific situation, including revenue simulations for properties and consultations on operational planning.
