Mr. Watanabe: When did you first start considering the project for Asuka Village?

Hoshino: I believe it has already been about 10 years. Ever since I first met Mayor Morikawa, we had been discussing how Hoshino Resorts and Asuka Village could collaborate to transform and strengthen the quality of tourism. Asuka Village inherently possesses invaluable historical resources and has been registered as a World Cultural Heritage site. However, the key challenge was that the area was still dominated by day-trippers, resulting in a limited contribution to the local economy. Therefore, shifting toward stay-based tourism became our core mission.

Hoshino: For example, in the United States, there is a town called Williamsburg, which is deeply tied to the origins of the nation and serves as a famous historic tourism asset. Compared to a destination like that, the true value of Asuka Village remains unrecognized and underrated. I believe that by having Hoshino Resorts involved in Asuka Village, we can help build a high-quality tourism destination that contributes positively to the local economy while avoiding overtourism.

*Williamsburg is an independent city located in the Hampton Roads metropolitan area of Virginia. It is home to Colonial Williamsburg, a historic district that restores and recreates the former British colony of Virginia. Serving as the capital of the Colony of Virginia from 1699 to 1780 during the British colonial era, it housed the Capitol of Virginia and served as the political epicenter for the Colony of Virginia—events that would ultimately lead to the American Revolutionary War.

Mr. Watanabe: Could you tell us about the concrete details regarding HOSHINOYA Asuka, which is scheduled to be built in Asuka Village?

Hoshino: HOSHINOYA Asuka emphasizes a design that harmonizes with the original landscape of the village governed by the Asuka Law*, such as the region's natural surroundings, terraced rice fields, tiled roofs, and low-rise residential structures. While we naturally avoided forced imitations of buildings from the Asuka period, we aimed to create an architecture that allows guests to feel its historical atmosphere.

Mr. Watanabe: There are several tourist spots in the surrounding area—are you considering offering transportation or access solutions to these sites as part of your service?

Hoshino: Many component parts of the UNESCO World Heritage site, "The Ancient Capitals of Asuka and Fujiwara," are located within Asuka Village—including the Asuka Palace Site, Asuka-dera Temple, Ishibutai Mounded Tomb, Takamatsuzuka Mounded Tomb, and Kitora Mounded Tomb. Exploring all the spots within the village requires time. We want guests to take their time and truly experience them, which makes overnight stays essential. Ideally, we would like them to stay two to three nights to fully immerse themselves in the deep appeal of these historical assets.

Hoshino: When I first saw the facilities built for touring the tumuli clusters, I felt that Japan had invested a tremendous amount of effort into creating them. As Hoshino Resorts, we hope to play a supporting role in enabling guests to experience and appreciate their greatness during their stay. As for transportation, rather than the hotel providing everything itself, we believe it is desirable for various transit options to develop as business opportunities for the local economy.

*The Asuka Law: Officially known as the "Special Measures Law for the Preservation of Historical Features and the Improvement of the Living Environment in Asuka Village." Strict architectural and development regulations are imposed throughout the entire village, requiring community development that protects the historical landscape.

Mr. Watanabe: That brings me to my next question—could you tell us about the property overview and the target guest profile?

Hoshino: The new resort will feature 35 guest rooms and is being designed as a stay-based destination resort. We have set mindfulness as the resort's core theme, ensuring that even guests whose primary purpose is not sightseeing in Asuka Village can thoroughly enjoy their stay. We aim for an 50/50 split between domestic and international guests, as we place equal importance on our Japanese clientele. This is because they are essential to maintaining our service quality and upholding the standards of Japanese cuisine, given their high cultural awareness and discerning expectations.

Mr. Watanabe: Nara is notoriously known for its lack of evening dining options and nightlife, which leads most visitors to leave for Kyoto or Osaka rather than staying overnight.

Hoshino: To address this issue, developing the evening dining environment in Asuka Village is crucial. Looking back at how Karuizawa developed as a resort village, it was initially a challenge there as well, but as overnight guests increased, the food and beverage landscape expanded. When summer home residents transitioned to year-round stays, it helped attract high-caliber chefs and led to a growing number of popular restaurants.

Hoshino: Capitalizing on Asuka Village's geographic proximity to Kyoto and Osaka, proposing an extension of one or two extra nights to tourists already visiting those cities is an effective strategy.

The Asuka period, which began in 592 AD, was the era that saw the birth of Japan's first full-fledged capital. While preserving the priceless historical resources left here, we hope to contribute to fostering sustainable tourism that generates a positive economic impact for the local community.