With the increase in foreign tourists visiting Japan, the Japanese tourism industry is undergoing a major transformation. In this context, Hiroki Fukunaga, founder of "THE RYOKAN COLLECTION," has been introducing outstanding ryokan (traditional Japanese inns) from all over Japan to the world. Mio Shimamura, editor-in-chief of Premium Japan and executive director of the Japan Cultural Promotion Organization (JCCO), spoke with him about the value of Japanese ryokan culture and the future that tourism can bring to local communities.

A stay at a traditional Japanese inn is a unique and precious experience that can only be had in Japan.

Shimamura　First, please tell us about The Ryokan Collection.

Fuyong　The Ryokan Collection is an international hotel consortium specializing in Japanese inns and small hotels, which started in 2004 with the slogan "Transforming Japanese inns into RYOKANs for the world." It currently has 45 member establishments and more than 12 foreign individual members.

Shimamura　I imagine the journey wasn't easy,Sharing Japanese inn culture with the world is something I am proud of as a Japanese person.It's a challenge, isn't it? These days, how to pass on and preserve Japan's traditional culture is a challenge for all industries. How about the inn industry?

Fuyong　At the heart of The Ryokan Collection's activities is the desire to introduce, preserve, and pass on to the next generation Japan's ryokan (traditional inn) culture and regional culture to the world. This sentiment has remained unchanged since our founding.

I believe that a ryokan (traditional Japanese inn) is not merely a place to stay, but an embodiment of the region itself. When you stay at a ryokan, you are served dishes made with local ingredients, local crafts and tableware are used, and the building and the beautiful nature all reflect the culture of the region. In other words, staying at a ryokan is also about experiencing the culture of that region.

Shimamura　Ryokan (traditional Japanese inns) are deeply rooted in their communities and play a key role in regional revitalization. While ryokan are familiar to Japanese people, how are they viewed from around the world?

Fuyong　When I started The Ryokan Collection more than 20 years ago, very few people overseas knew the word "ryokan" (traditional Japanese inn).

However, nowadays, we hear people all over the world saying they want to stay at a traditional Japanese inn (ryokan) and enjoy hot springs when they visit Japan. Ryokan are definitely becoming recognized as places where you can experience Japanese culture.

For international guests, Japanese inns hold a very special place in their hearts. Soaking in hot springs, enjoying traditional Japanese cuisine, and relaxing in tatami rooms – that experience is something you won't find in hotels anywhere else in the world.

The reality facing the inn industry

Shimamura　What is the current state of the inn industry in Japan?

Fuyong　In fact, statistically speaking, the inn industry is considered a declining industry. The number of inns is decreasing year by year.

This situation stems from Japan's declining population. While the number of foreign guests at ryokan (traditional Japanese inns) is increasing, Japanese guests still make up the majority. Overall, foreign guests probably account for around 3%. As the domestic travel market shrinks, the ryokan industry is also being affected.

Shimamura　So, attracting Japanese customers is just as important as attracting foreign customers, right?

Fuyong　I believe the structural nature of Japan's tourism industry is also a contributing factor. Until now, the tourism business has been a model centered around travel agencies. Travel agencies transport people, and money flows into that system. Of course, that plays an important role, but if we consider tourism from the perspective of preserving local culture, it could be said that the structure itself is at a time of change.

What is the Japanese inn culture that the world values?

Fuyong　I believe that Japanese ryokan (traditional inn) culture has a special value on a global scale. The ryokan industry has a history of over 1300 years, and tens of thousands of inns are still in operation today. This is a very rare culture in the world.

This stems from Japanese hospitality. Historically, Japanese people have naturally invited visitors to their homes with phrases like, "Please make yourself at home," or "Please take a bath." This isn't just a service; it's a culture of caring for others.

Shimamura　This is the Japanese value known as "omotenashi" (hospitality).

Fuyong　That's true, however, the word "omotenashi" (hospitality) has taken on a life of its own without its original meaning and depth being understood, so I refrain from simply using the word "omotenashi." However, I believe that ryokan culture possesses unique Japanese values, such as the delicate Japanese cuisine served at ryokans, the beauty of the architecture, the respect for nature, and the consideration for people. And I hope that many people will experience this and become interested in the original meaning and cultural background of "omotenashi."

Shimamura　So, a ryokan (traditional Japanese inn) isn't just a place to stay; it's a cultural experience in itself.

Fuyong　Furthermore, we hope that inns will become hubs for local tourism. A key factor in the success of local tourism is that it contributes to the well-being of the local people.

Whenever there's a discussion about increasing the number of foreign tourists, the problem of overtourism inevitably comes up. That's why I believe tourism must first and foremost be something that pleases the local people.

Shimamura　It would be counterproductive if an increase in foreigners disrupted the lives of local people. We need mechanisms in place to ensure that visits from foreign tourists revitalize the local economy.

Fuyong　That's right. Places that locals enjoy are also attractive from the outside. That's because authentic culture is there. I think it's important to have an approach that allows local life and tourism to coexist, rather than separating them.

The role of a traditional Japanese inn is to be a leading force in revitalizing the local community.

Fuyong　We are now in the age of inbound tourism. People are visiting Japan from all over the world. In a sense, Japan is like an exhibition every day.

Foreign tourists don't just come to see tourist attractions. They come to experience Japan itself—its food culture, nature, history, art, and more.

That's why future tourism must be decided by local communities. How to develop a region should be a task that local businesses, not just the government, take the lead in addressing.

Inn owners are often prominent figures in their local communities. That's why we want them to take on a leadership role, and we're happy to help them find ways to do so.

Shimamura　Are there any successful examples worldwide of town revitalization centered around hotels?

Fuyong　Yes, there are many examples in Europe. In successful tourist destinations, hotel owners become local leaders, create tourism organizations, and promote themselves to the world.

Now that we have the internet, it's possible to deliver information directly from a local area to the world. This means that inns can connect directly with the world.

Shimamura: Japan isn't very good at communicating, so how we appeal to the world will be key going forward.

Fukunaga: In that respect, our company has been acting as a bridge to introduce excellent ryokans (traditional Japanese inns) to the world for the past 20 years. However, I think there are also an increasing number of ryokans that are independently and actively promoting themselves to the world.

Exploring the new possibilities of wellness tourism

Shimamura　I understand that you've been focusing on new initiatives in recent years.

Fuyong　Recently, we've been focusing on wellness tourism. We've partnered with Chiva-Som, a luxury wellness resort in Thailand, to develop new stay programs in Japanese hot spring areas. As Chiva-Som means "a sanctuary of peace" in Thai, it's a pioneer in wellness resorts, offering high-quality meals, various spa treatments, and a focus on well-being (being in a good physical and mental state).

Shimamura　It's great that we'll be able to experience this in Japan too.

Fuyong　Among the world's wealthy, long-term stays for health purposes are on the rise. In Japan, hot springs have a long history of therapeutic bathing, and are an integral part of wellness culture.

We will develop a stay program that combines hot springs, nature, Japanese cuisine, and medical care to encourage longer stays. We need to evolve from the current one-night, two-meal model to a new model. As the first step, we will launch this program at "Bettei Senjuan" in Minakami Onsen. We want to advocate for a stay program that allows busy people to find physical and mental health and peace of mind.

As a board member of the Japan Cultural Promotion Organization (JCCO), I want to rediscover even more of Japan's treasures.

Shimamura　Thank you for taking the time out of your busy schedule to serve on the JCCO board. Could you tell us why?

Fuyong　Japan has truly wonderful people, technology, and culture. But it's not well known. I think that's a real shame.

Many artisans, chefs, and cultural figures in rural areas are world-class. However, opportunities for their value to be widely recognized are rare.

I have introduced Japanese culture to the world through inns, but there are still many more fascinating aspects that I cannot fully convey through that method alone.

Culture is something that remains invisible unless someone shines a light on it. I believe that introducing outstanding people and technologies to society is also a way of passing on Japanese culture to the future.

Japan has a treasure trove of wonderful culture. How to promote it and how to protect it—I believe that is a crucial theme for Japan's future.

Shimamura　Thank you very much. We would appreciate your continued support for JCCO's activities.

Hiroki Fukunaga

Representative of THE RYOKAN COLLECTION. Originally from Nishinomiya City, Hyogo Prefecture. After gaining experience at a luxury hotel chain in the UK, she established "THE RYOKAN COLLECTION," Japan's first luxury ryokan consortium, in 2004. She promotes marketing and brand building targeting the overseas affluent market and works to enhance the value of Japanese ryokans. She is also a director of the Japan Cultural Promotion Organization (JCCO).