Across the InterBridge: Where Global Business Meets Local Insight

In recent years, Japan has broken multiple tourism records, with nearly 37 million visitors last year alone. The country continues to rank as one of the world’s top travel destinations across various international rankings. In your view, what makes Japan such an appealing and relevant destination in today’s global travel landscape?

First and foremost, Japan is a culturally rich country. I’ve had the experience of living abroad, and during that time, I saw firsthand just how many people are genuinely interested in Japanese culture. Now, with the rise of social media and other digital platforms, that interest is only growing. This broader exposure has helped fuel the global fascination with Japan, and it forms the backdrop for the current surge in tourism.

One common criticism of the recent surge in inbound tourism is the issue of overtourism—particularly along the so-called "Golden Route" of Tokyo, Osaka, and Kyoto. Having lived in Japan for ten years, I’ve come to believe that much of the country’s true beauty lies in its regional areas, which are often harder to access or lesser known. What do you see as the role of a company like AJ InterBridge Inc. in helping to introduce visitors to more authentic, off-the-beaten-path experiences in these regional destinations?

As you mentioned, many visitors tend to follow the well-traveled route of Tokyo, Kyoto, and Osaka. While we started our operations in Kyoto, we’ve always looked beyond these traditional hubs.

Even before the launch of the Hokuriku Shinkansen, we had our eye on Kanazawa, recognizing its potential as an emerging destination. We also saw growing interest in areas like Takayama and Nagano. So, while the "Golden Route" certainly exists, Japan has much more to offer beyond it.

When travelers venture into these regional areas, they can experience authentic Japanese culture, enjoy the natural beauty of the countryside, and stay in high-quality accommodations. It’s these deeper, more personal experiences that we aim to promote through our work.

While the word ‘overtourism’ is often used, I believe Japan is still in the early stages of its inbound tourism growth. Both the national and prefectural governments are proactively introducing new policies and investing in infrastructure to support this development, with a clear focus on allowing visitors to travel comfortably while ensuring that local communities continue to thrive. Our role is to complement these efforts by guiding travelers toward authentic, regional experiences that create sustainable tourism benefiting everyone.

One major challenge facing hospitality companies—especially those operating in regional areas—is the growing labor shortage. Japan has the oldest population in the world, and the population continues to decline each year. This puts significant pressure on the hospitality sector, which is labor-intensive by nature—particularly in the mid- to upper-market segments that demand not just infrastructure, but experienced, high-quality service. How is your company addressing these demographic and workforce challenges?

As you pointed out, we are indeed facing a labor shortage. However, as a relatively new company, one of our strengths is our flexibility. I previously worked in Australia, where I had the opportunity to meet people from many different backgrounds. I learned a great deal from those experiences, and that perspective has been very beneficial in my current role.

To welcome more international tourists to Japan, we believe it’s essential to embrace diversity. Working with people from diverse backgrounds not only helps address staffing needs—it also allows us to generate new ideas and approaches by combining different perspectives. This mindset is central to how we’re approaching the labor and demographic challenges ahead.

This message feels especially relevant to your company’s business model, which focuses on renovating traditional wooden townhouses, or machiya. This model has attracted growing attention recently, as it offers several advantages—such as lower construction costs compared to new builds, and a unique, differentiated lodging experience for tourists. That said, machiya properties also come with certain challenges, particularly in terms of infrastructure and ongoing maintenance. From your perspective, what are some of the key advantages that this machiya-focused business model offers?

We’re a growing company, so we can’t simply replicate what the large companies are doing. That’s why we focus on thinking creatively and targeting niche markets where there’s strong demand. I believe this approach is essential for us.

My experience living and working in Australia also gave me the opportunity to view Japan more objectively. Through that lens, I came to realize that many travelers have a deep interest in traditional houses like machiya. They find them unique and culturally rich, which makes them particularly appealing as an accommodation option.

Two private machiya holiday homes available through MACHIYA RESIDENCE INN Kanazawa, located in Kanazawa, Japan.

Our machiya accommodation brand, MACHIYA INNS & HOTELS, doesn’t manage traditional Japanese inns, or ryokan. Instead, we offer unique stays in renovated machiya townhouses, available as private holiday rentals and boutique-style hotels. Naturally, managing this type of business isn’t easy. Operating a single hotel with 100 rooms in one location would be far simpler. In our case, we manage a portfolio of over 100 machiya properties spread across different parts of Japan, which presents operational challenges—even for a large company.

The key to our business is focusing on a niche market where there’s strong and consistent demand. That’s why we’ve chosen this model. While we also see the cultural importance of preserving machiya, we recognize that to sustain the business, it must also be profitable.

If more domestic and international tourists continue to enjoy these traditional houses, it could even serve as an opportunity to shift how machiya are perceived within Japan. In that sense, our goal is to leverage the appeal of Japanese culture to international visitors and, through that, help spark broader appreciation for these cultural assets.

That’s an interesting point, especially considering Japan’s well-known scrap-and-build construction culture, where older buildings are often quickly torn down—sometimes at the expense of preserving historical assets. From the perspective of a foreign tourist, what would you say are the key reasons for choosing to stay in a machiya rather than a traditional ryokan?

In Japan, a hotel typically refers to a Western-style facility, while a ryokan is the traditional Japanese equivalent. What we offer is something different—we also offer the opportunity to rent out an entire machiya, which are traditional houses that people actually used to live in.

Of course, staying at a ryokan offers a traditional experience, but through our private MACHIYA RESIDENCE INN holiday house lodgings, we aim to provide guests with the chance to immerse themselves in the local lifestyle. It’s less about being served and more about living like a local, even if just for a short time. In addition to private machiya holiday homes, MACHIYA INNS & HOTELS offers a variety of accommodation styles, giving guests a range of options to suit their preferences and travel plans.

The success of the machiya model has attracted growing attention from both investors and the media in recent years. I recently came across an article in The Japan Times discussing the increasing interest from Asian high-net-worth individuals and hotel operators looking to enter the Japanese hospitality market through machiya. I understand that one competitive barrier you've established is scale, with over 100 machiya properties under your management. However, as the market becomes more competitive, what would you say are your company’s key competitive advantages or distinguishing features within this space?

We focus on holiday rentals, and I believe our key differentiator is the quality we offer—both in terms of the facilities and the service. Continuously enhancing that quality is essential, and it sets our machiya business apart from traditional hotels and ryokan. At the same time, improving travelers’ convenience and the overall guest experience is just as important.

From what I understand, most other hotel operators have entered the Japanese hospitality market by focusing on hotels or traditional ryokan rather than machiya. This is likely because it's much easier to scale and expand larger accommodations with multiple rooms compared to developing machiya properties one at a time. So at this stage, we’re not directly competing with them. This remains a niche market, and we see value in maintaining that focus.

That said, we expect the landscape to evolve over the next few years. Still, with more than 15 years of experience in machiya rental operations, we have a depth of know-how that allows us to stay relevant and competitive as the market develops.

One reason the machiya segment is such a compelling model and investment opportunity is that it addresses some of Japan’s long-standing gaps in the accommodation market—particularly for long-term stays and larger groups. Machiya rentals also appeal to upper-middle to high-end travelers. What type of clientele are you aiming to attract through your machiya offerings?

We aim to attract customers who are financially independent, deeply interested in Japanese culture, and eager to explore on their own to experience that culture firsthand. These guests typically fall into the upper-middle or higher income brackets, as you mentioned—but they’re not necessarily luxury travelers looking for five-star hotels or high-end, fully serviced experiences.

What sets our ideal customers apart is their mindset. They’re affluent, but they also value exploration and authenticity. Our machiya rentals offer that sense of adventure and cultural immersion. Rather than focusing on five-star luxury, these guests prioritize convenience and a seamless, comfortable lodging experience.

That said, I want to be clear—we are absolutely committed to providing quality service. While our model emphasizes independence and local experience, customer satisfaction is always top of mind, and we work hard to ensure our guests feel supported throughout their stay.

You founded the company in 2009, and in a relatively short time, you've grown into one of Japan’s leading machiya operators, with around 100 properties today. Could you walk us through the history of the company and some of the key milestones since its inception?

I’m not sure I can answer your question directly in terms of specific milestones, but I’d be happy to share my personal journey. As I mentioned earlier, I previously lived and worked in Australia for about 13 years, including working at a 5-star hotel. During that time, I had a strong impression that a hotel could serve as a temporary home for guests—offering them not just accommodation, but a joyful and meaningful experience. At the same time, I had been thinking about starting a business in Japan, which eventually led me to return home.

That’s when I began to see the potential of machiya as a business opportunity. In the early stages, I was involved in every aspect of the operation—from housekeeping and reservations to marketing and guest services. That naturally led to a second, then a third, and the business grew step by step.

At first, we managed machiya properties developed by real estate companies. However, that model proved limiting, so we shifted to renovating the properties ourselves. This allowed us to tailor the design and features to better suit our guests’ needs. Since then, I’ve been continuously refining our offerings to maintain a high level of customer satisfaction.

We started in Kyoto, but I quickly recognized the demand for machiya-style accommodations in other areas, such as Kanazawa and Takayama, which led to our expansion there. That’s been the foundation of our journey.

I returned to Japan from Australia in 2009 and launched AJ InterBridge Inc., while also working at a guest house in Tokyo. The atmosphere there was very relaxed, and I was free to go out in the evenings with our guests. I built good relationships with them and realized I needed to challenge my assumptions about what visitors were really looking for in their Japanese experience. Sometimes I organized tours, and after those, I’d conduct surveys to hear their opinions and impressions. I found that my ideas aligned closely with their expectations. That experience gave me the confidence to continue competing and to fully commit to this segment of the market.

I understand that your service model offers fewer amenities than a five-star hotel, but you do provide authentic experiences tailored to your segment. Could you tell us more about the types of services you offer and how you deliver the kind of authenticity your guests are looking for?

Our business consists of several key elements. Lodging is, of course, one part of the experience, but we also place great importance on offering enjoyable activities and dining options. These three components—accommodation, experiences, and food—are all essential.

To provide our guests with a truly authentic experience, we make it a priority to understand what they are seeking during their time in Japan, particularly when it comes to cultural and culinary interests. Based on that understanding, we aim to curate the right experiences that align with their expectations. We've conducted research and analysis to deeply understand our guests’ preferences, which allows us to offer services that are both relevant and meaningful.

Tempura kaiseki dinner in Tokyo, available through a local restaurant listed on the MACHIYA LOCALS online system.

One example I can share is our kaiseki gastronomy experience, which features sophisticated traditional Japanese cuisine served in courses. For many non-Japanese guests, kaiseki dining can feel intimidating or unfamiliar. For instance, guests may not realize that simply sitting at the table can incur a service charge. Additionally, they often don’t know what specific dishes or ingredients will be served—some of which may not suit their tastes or could pose allergy concerns. In the past, I’ve received many questions from guests about these aspects.

To address this, we developed an online system called MACHIYA LOCALS, available in Kyoto, Tokyo, Kanazawa, and Takayama. Through this platform, guests can make kaiseki reservations on their own. When they arrive at the restaurant, everything has already been arranged for them—so all they need to do is show up and enjoy the meal without any unexpected surprises.

This online service helps reduce the anxiety that can come from not fully understanding Japanese cuisine, while still allowing guests to enjoy an authentic culinary and cultural experience with confidence and comfort.

You mentioned how your portfolio has grown—from an initial focus in Kyoto to expansion into Kanazawa, Takayama, and eventually Tokyo. Are there any exciting new machiya properties set to open in the coming months?

Like everyone in the industry, we were hit hard by the pandemic, so we consider ourselves fortunate to have made it through. During that time, I tried to anticipate what the post-pandemic landscape would look like, and I predicted that many tourists would eventually return to Japan. Based on that expectation, I expanded the number of machiya properties to accommodate the growing number of both domestic and international travelers we foresaw.

At the moment, our focus is on our existing markets and on understanding the behavioral patterns of our guests. Right now, most visitors travel along the so-called "Golden Route" of Tokyo, Kyoto, and Osaka, occasionally branching out to places like Kanazawa and Takayama. In the future, if new destinations begin to attract attention from international tourists, we would certainly be open to expanding into those areas.

In addition to our physical machiya portfolio, we also have our digital platform, MACHIYA LOCALS, which I mentioned earlier. We're now looking to enhance the content and value of that platform as well.

I find your focus on creating content around authentic cuisine and cultural experiences especially compelling, and it clearly extends into your marketing and partnership strategy. You've executed some very innovative campaigns—for example, your virtual travel collaboration with the ANA GranWhale platform during COVID, and your participation in events like the Matsuri Japan Festival in Sydney, where you introduced the benefits of staying in a machiya. Are you currently exploring similar types of marketing partnerships or collaborations?

I believe many individuals and organizations share the goal of promoting Japanese culture to a wider global audience, and I would like to collaborate with those who share that mindset. In fact, I see this not only as one of our company’s missions but also as something I personally want to pursue.

While we primarily offer accommodations and a digital platform here in Japan, the Matsuri in Sydney festival gave us a valuable chance to engage directly with festival-goers and showcase our machiya accommodations and Japanese culture at our booth. On the other hand, the ANA GranWhale platform allowed us to connect digitally with future travelers. Moving forward, we aim to leverage more opportunities like these to foster direct engagement with international audiences. We also hope to expand these initiatives beyond Japan into other countries in the future.

You founded AJ InterBridge Inc. in 2009, and the 20th anniversary is now on the horizon. If we were to return for that milestone to interview you again, what would you hope to have achieved by then, and where do you envision the company standing at that point?

I want to make a meaningful impact on Japan’s inbound tourism market. That’s my mission, and it’s the reason I returned to Japan from Australia. I hope to continue contributing to this industry in a way that supports both the growth of tourism and society as a whole.

As I’ve mentioned, there is a strong and growing interest in Japan and its culture. Through our business, we aim to offer more than just unique machiya lodging at MACHIYA INNS & HOTELS—we also provide engaging dining and cultural experiences via our MACHIYA LOCALS platform.

By 2029, I hope to expand both the regions we operate in and the number of properties under our management. Our vision is to continue building on the integration of physical and digital experiences, creating a seamless and enriching journey for travelers from around the world.

For more information, please visit their website at: https://www.aj-itb.com/en/about/