Unlocking Japan's Hidden Gems: How Klook and Hoshino Resorts Are Redefining Sustainable Tourism

Japan's tourism sector faces a paradox: while its iconic cities like Tokyo and Kyoto draw record-breaking numbers of visitors, vast regions remain underexplored. Overtourism—crowded streets, strained infrastructure, and eroded local culture—has become a pressing issue. Yet, a new partnership between Klook and Hoshino Resorts is turning this challenge into an opportunity. By leveraging curated travel experiences, cutting-edge tech, and a focus on lesser-known regions like Kunigami (Okinawa) and Usu (Hokkaido), they are pioneering a model for sustainable tourism that could reshape Japan's regional economy—and offer compelling investment potential.

The Overtourism Crisis and Its Solutions

Japan's tourism statistics paint a stark picture: 73% of overnight stays are concentrated in just five prefectures. This imbalance strains resources and overshadows quieter destinations like Kunigami, a rural Okinawan district known for its anime-inspired landscapes and pristine beaches, or Usu, a volcanic area in Hokkaido with untapped outdoor potential. The government has responded with initiatives like the 2024 supplementary budget, allocating JPY 15.82 billion to combat overtourism through tech-driven solutions and regional revitalization.

Enter Hoshino Resorts, a hospitality giant renowned for its luxury stays and community-focused projects, and Klook, a tech-first travel platform with expertise in curating niche experiences. Together, they are targeting overtourism's root cause: concentrated demand. Their strategy hinges on “Stay+ bundles”—packaged itineraries combining Hoshino's accommodations with local activities, transport, and hidden-gem attractions. These bundles steer travelers away from overcrowded hubs and into regions like Kunigami, where tourism infrastructure is underdeveloped but demand is ripe for growth.

Tech as the Catalyst: Klook's Role in Scaling the Model

Klook's strengths lie in its data analytics and digital distribution networks. By integrating real-time visitor data with Hoshino's property reservations, they can optimize demand patterns, avoid overcrowding, and dynamically price stays to balance supply. For instance, their platform could highlight Kunigami's Okimeguri app—an AI tool that predicts congestion at tourist spots—to travelers, encouraging visits during off-peak times. Meanwhile, Hoshino's expertise in curated hospitality ensures that stays in these regions are as appealing as urban alternatives, from eco-lodges in Yanbaru's rainforest to hot spring retreats in Usu's volcanic terrain.

The partnership's tech infrastructure also addresses a key barrier to regional tourism: logistical complexity. Travelers often avoid lesser-known areas due to fragmented booking systems or poor transport links. By bundling flights (via partnerships like Japan Airlines' free domestic tickets), accommodations, and activities into a single package, Klook and Hoshino simplify the process, making “hidden gems” accessible to mass audiences.

Investment Themes: ESG Alignment and Scalability

For investors, this model ticks multiple boxes:
1. ESG Alignment: Reducing overtourism's environmental and social toll aligns with ESG criteria, attracting impact investors. Hoshino's carbon-neutral initiatives and Klook's data-driven conservation efforts (e.g., limiting tourist numbers at fragile sites) amplify this appeal.
2. Scalability: Japan's 2024 budget allocations (up to JPY 80 million for regions like Kumamoto) signal government backing for infrastructure upgrades in underpenetrated areas. With Klook's platform already managing over 100,000 activities globally, the potential to expand the “Stay+ bundles” nationwide—or even internationally—is vast.
3. Data-Driven Growth: The partnership's reliance on real-time data to optimize demand and pricing positions it to capitalize on Japan's rebound in inbound tourism.

Risks and Opportunities

Critics may question whether demand for “hidden gems” can sustainably offset urban tourism. However, the 2024 study cited earlier notes that high-income cities like Venice and Barcelona have successfully reduced overcrowding via strict policies—Japan's strategy mirrors this, but with a focus on dispersal over restriction. Additionally, Klook's valuation (reportedly over $5 billion) and Hoshino's brand equity reduce execution risk.

Investors should also monitor regional policy shifts. The Sustainable Tourism Promotion Project, which funds data collection and congestion management systems, could provide subsidies for tech investments like Klook's AI platforms. Meanwhile, the Japan Tourism Agency's 2025 targets—aiming to double regional tourism's economic contribution—signal long-term support.

Conclusion: A Blueprint for Responsible Growth

Klook and Hoshino's collaboration is more than a travel deal—it's a blueprint for sustainable tourism. By channeling demand to underdeveloped regions through tech-enabled bundles, they address overtourism while unlocking latent economic value. For investors, this synergy offers exposure to Japan's regional revitalization and ESG-driven growth, with scalability backed by government and private-sector alignment. As Japan's tourism sector evolves, betting on the hidden gems—and the companies curating them—could yield both financial and societal returns.