Building Beyond Construction: Toda’s Vision for Regional Revitalization and Hospitality

TODA Corporation, founded in 1881, is a long-established company with a significant history in Japan's architecture and civil engineering industry. In recent years, we have seen the company diversify into new areas, including hospitality, where you operate Marissa Resort. What motivated your decision to directly operate Marissa Resort, and how does this align with your broader strategic vision?

Marissa Resort was established over 30 years ago as a public-private partnership project aimed at developing regional infrastructure and revitalizing the local economy. However, from the very beginning, we faced challenges in management due to a lack of expertise on our part. While we made gradual improvements and continued operations, the situation remained difficult.

Around eight years ago, TODA Corporation adopted a new management policy focused on securing long-term sustainability by diversifying beyond its traditional architecture and civil engineering businesses. As part of this initiative, I was entrusted with building a “third pillar” of revenue in addition to our core businesses. Strengthening Marissa Resort became a part of that effort.

Currently, TODA Corporation operates across three main business domains: Building Construction, Civil Engineering, and Strategic Business Promotion. My role is to develop a new strategic direction for the third pillar, the Strategic Business Promotion Group, which includes efforts to strengthen our presence in the hospitality and accommodation sectors as part of a broader strategy for diversification into new business areas.

While construction remains our core business, one of our company-wide strategies is to provide a closed-loop service model that covers everything from design and construction to facility operation, long-term maintenance and management, and even reconstruction if necessary. To realize this full-cycle approach, it is essential to accumulate operational expertise, identify latent needs, and enhance our capabilities in service delivery, operations, and overall management.

Historically, our group’s revenue relied heavily on the construction business. When I assumed responsibility for the Strategic Business Promotion Group, its annual revenue was only around 40 billion yen. However, over the past eight years, the division has grown steadily, reaching 167 billion yen as of the end of last fiscal year. Marissa Resort is part of this broader strategy. Some viewed it as a non-core asset, with over 30 years since its construction, and recommended selling it. But we saw it not only as an opportunity to improve operational efficiency, but also as a valuable source of experience and learning.

Although our construction business is primarily B2B, our clients often evaluate TODA based on their interactions with our employees. In other words, there is a significant B2C element involved, making it essential to complete the B2B2C cycle. By managing facilities like Marissa Resort, we can gain direct insights into consumer-facing aspects of the value chain, which in turn allows us to better support our clients throughout their entire business lifecycle.

From a broader strategic perspective, I saw significant potential in Marissa Resort to strengthen our B2C capabilities, thereby helping to differentiate us as a company. That’s why I believed it was crucial to continue operating the resort rather than shutting it down. I was able to convince senior management that, beyond profitability, it represents a valuable platform for future growth and innovation.

As a construction company, what do you see as the primary advantages of your background when moving into these new, service-driven areas? Conversely what are the key challenges you’ve encountered along the way?

The biggest challenge we face is the lack of in-house expertise in these new business areas. To address this issue, we are actively recruiting professionals with relevant experience. Currently, approximately 25% of the employees within the Strategic Business Promotion Group have been mid-career hires brought in specifically to strengthen our capabilities.

Conversely, our greatest strength is the strong brand recognition that Toda Construction already enjoys. Even as we enter entirely new sectors, our solid reputation in our core business enables us to earn trust and open doors to new opportunities. Looking ahead, how important do you believe this new business division will be in the next midterm plan?

Under our medium-term management plan, we are aiming for total revenue of approximately 800 billion yen. Of that, we expect just under 30% to come from the “third pillar” businesses, which include domestic and international real estate and hotel operations. This represents significant growth—from 40 billion yen in fiscal 2016 to a target of 227 billion yen by fiscal 2027. Our mission is to elevate this third pillar to account for roughly 30% of the company’s overall portfolio.

Marissa Resort

Marissa Resort

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Do you see the success you've had with Marissa Resort being replicated in other locations across Japan?

We currently have seven hotels in total, but we directly manage only two of them—Marissa Resort and our property in Kyoto. The remaining properties are operated through partnerships. We also own a hotel in Queenstown, New Zealand.

We have also acquired the former Kanpo no Yado Sakata, located in Sakata City, Yamagata Prefecture, and are planning renovations and value enhancements. Centered around this facility, we aim to contribute to regional revitalization and the enhancement of Sakata City's appeal. Additionally, we have signed a comprehensive partnership agreement with the city to create opportunities for realizing our envisioned future urban development initiative—the SECC (Smart Energy Complex City) project.

What other types of projects are you exploring as part of this third pillar strategy?

Yes, one of the key areas we are actively developing is the concept of “sixth industrialization” in the agricultural sector. This term comes from multiplying the three traditional sectors: agriculture as the primary industry (1), manufacturing and processing as the secondary (2), and services as the tertiary (3). When multiplied, this gives the following formula: 1 × 2 × 3 = 6. The idea is to integrate all three into a single value chain that revitalizes rural economies.

This concept led us to develop Agriscience Valley Joso. Officially launched in May 2023, Agri-Science Valley Joso is an urban development initiative aimed at revitalizing the Joso region through the sixth industrialization of agriculture.  Farmland owned by many landowners was consolidated and divided into large lots, mainly around the Joso Interchange on the Ken-O Expressway in Ibaraki Prefecture. At the same time, business facilities were developed that handle all aspects of production, processing, distribution, and sales.

In this project, one-third of the total 45-hectare area is allocated to primary industry, specifically agriculture, while the remaining 30 hectares are utilized for secondary and tertiary industries. Although the area of rice paddies has been reduced to one-third of its original size, the introduction of new technologies has led to a 30-fold increase in agricultural output. Additionally, the project has created approximately 2,000 new jobs, significantly contributing to the revitalization of the local economy. Tax revenues, which were once under 1 million yen per year, are expected to increase to around 500 million yen annually.

This initiative also serves as a model case for public-private partnership. In collaboration with a roadside station (Michi-no-Eki), we operate a commercial facility that includes a local produce market, a TSUTAYA BOOKSTORE, and a hot spring facility. As Japan's agricultural population continues to age, this kind of project aims to attract younger generations and promote long-term regional revitalization.

Currently, about 60–70% of Japan’s agricultural workforce is over the age of 60. With around 1,300 municipalities across the country, local governments are under increasing pressure to address the decline of rural areas. According to a 2024 survey conducted by Nikkei BP Research Institute, our initiative ranked third nationwide for regional revitalization site visits, and first in the category of public-private partnership–focused visits.

The knowledge and insights we’ve gained from operating Marissa as a B2C business have directly applied to our broader initiatives, including the Agriscience Valley Joso. Those accumulated lessons continue to shape our strategic direction. Marissa Resort is just one of many projects we are involved in, but it has played a crucial role in deepening our understanding of the B2C sector.  That experience has empowered us to expand more confidently into other consumer-oriented ventures.

Agri-Science Valley Joso

What impact has the success of Marissa Resort had on Suo-Oshima Island?

The population of Suo-Oshima once stood at around 14,000 but has been on a declining trend. Through our operations in the area, we contribute to the local economy by generating approximately 500 million yen annually in consumer spending and employment opportunities.

From the outset, we recognized that ensuring profitability was essential to making our contributions sustainable. Long-term impact cannot be achieved without economic viability. Thanks to these efforts—and in contrast to other operators who have been forced to withdraw as they approach the time for major renovations—Marissa Resort has become a symbolic and indispensable presence for Suo-Oshima.

Could you recommend one or two memorable experiences that our readers should try when visiting Suo-Oshima and Marissa Resort?

Our goal is to offer an experience that resonates with all five senses of our guests. Every detail of the resort has been carefully designed to make the most of one of our greatest natural assets—the sea. For example, the Infinity Lagoon has been crafted to create a seamless visual connection between the lagoon and the ocean.

By filling the space between the hotel and the sea with water, we produce a stunning visual effect where sunlight reflects off the lagoon, the ocean, and the sky, creating a mystical and immersive atmosphere. Accompanied by the refreshing sea breeze, guests can feel as though they are truly at one with nature.

Another unique offering is our “chairing” service. Whether along the shoreline or in the depths of the nearby hills, guests can take one of the hotel’s foldable outdoor chairs to their preferred spot and enjoy a cup of coffee while surrounded by natural beauty. Located along the coast, the hotel offers a tranquil and relaxing environment where the gentle sound of waves soothes the soul. At night, guests can gaze at the moon and stars, and since the building faces east, breathtaking sunrises can also be enjoyed.

We understand that the core concept of Marissa is to “heal your heart.” Could you elaborate on what this means, and how you integrate traditional Japanese wellness philosophies with the expectations of today’s modern travelers?

Our core concept is centered on healing, both physical and emotional. The Seto Inland Sea, where our hotel is located, is known for its calm waters and beautiful views of the many small islands that dot the horizon. Among these, Suo-Oshima (also known as Yashiro Island) is especially renowned as a “sacred island,” exuding a mystical and spiritual atmosphere. Our all-inclusive accommodation model allows guests to fully relax and immerse themselves in this unique setting without any concerns or distractions.

Suo-Oshima Island offers not only pristine waters and stunning seascapes, but also lush forests and mountains. Combined with rich cultural assets and unique local experiences, these elements give the destination a well-rounded appeal. Could you explain how these factors contribute to making it a year-round destination?

On top of the many activities available on Suo-Oshima, our hotel offers amenities that can be enjoyed year-round. This includes our onsen, which is another highlight of our hotel. We offer both indoor and outdoor baths, and many international visitors are especially drawn to experiencing this uniquely Japanese tradition. For guests seeking an even more exceptional stay, we offer luxurious oceanfront rooms with private open-air baths.

While Suo-Oshima is widely visited in the summer—often referred to as the “Hawaii of the Seto Inland Sea”—visitor numbers drop during the winter, making year-round appeal a key focus. In fact, winter is one of the best times to visit: the air is crisp, the views are clear, and the peaceful atmosphere makes it an ideal destination for physical and mental rejuvenation. The island is also renowned for its star-filled night skies and as a major producer of mikan (Japanese mandarins). Mikan picking is a soothing seasonal activity that can be especially enjoyable during the colder months.

Located by the sea, our resort serves fresh, seasonal seafood year-round, allowing guests to fully experience the culinary delights of each season.

Off the coast of these pristine waters lies one of the world’s largest colonies of Japanese bubble coral (Nihon Awa Sango). Suo-Oshima is also home to numerous shrines and temples, including those dedicated to the deities of this “island of the gods.” The island is rich in cultural heritage, where visitors can experience the artistry and craftsmanship of traditional shrine and temple architecture.

Suo-Oshima has rich cultural heritage

Nihon Awa Sango

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How is the resort enhancing its offerings to better accommodate inbound tourists?

As our core mission is regional revitalization, bringing a constant flow of visitors is key to achieving our objective. Enhancing tourism content that aligns with the consumption behavior of inbound tourists is essential. Suo-Oshima has a long and rich history, and we are working to strengthen the range of attractive activities available, including nature experiences, historical exploration, and cultural programs.

Additionally, the nearby city of Iwakuni is home to a U.S. military base, and we often welcome guests from the base to our hotel. We are also involved in advertising within the base and sponsoring events held there, with the goal of further increasing usage through these connections.

On the international front, who is your primary target demographic?

Thanks to direct flights to Matsuyama Airport and charter flights to Ube Airport, interest from neighboring Asian countries has been growing. Since 1885, many residents of Suo-Oshima emigrated to Hawaii, and ongoing cultural exchanges have continued ever since. As a result, many visitors from Hawaii come to Suo-Oshima to reconnect with their ancestral roots.

The island is also conveniently located just an hour away by ferry from Mitsuhama Port in Matsuyama (Ehime Prefecture), making it easily accessible for both domestic and international travelers.

What types of partnerships are you seeking to further enhance the in-house guest experience?

At present, we’re not actively seeking partners specifically for in-house experiences. Despite being the third largest island in the Seto Inland Sea, Suo-Oshima suffers from low name recognition—a significant challenge we aim to address. If we were to pursue partnerships, the goal would be to promote Suo-Oshima as a whole rather than just Marissa Resort. By showcasing the island’s unique attractions, we aim to draw visitors to the destination itself—and once they choose to visit, we believe our resort will be the natural choice.

From a regional revitalization standpoint, raising the profile of Suo-Oshima Island is essential. I’m fully confident that once guests experience what we have to offer, their satisfaction will be assured.

As the person leading Toda’s Strategic Business Promotion division, have you set a long-term goal or final objective for your tenure?

Yes, my greatest mission is to ensure that the spirit of innovation and the drive to take on new challenges are passed on to the next generation. Over the past eight years, I have led this initiative by investing significant resources from our core business. Moving forward, our company aims to further enhance its contribution to society while ensuring the long-term sustainability of our revitalization projects, ultimately striving to improve our return on investment.

For more information, please visit: 
https://www.toda.co.jp/english/
https://www.marissa-resort.jp/en/