Posts Tagged ‘Tobu’

How high is up: Tokyo Skytree boosts economy for some

Thursday, May 31st, 2012

There’s a Japanese proverb that goes something like: Smoke and stupidity always rise to the highest places. It’s a useful saying when talking about the media frenzy regarding the Tokyo Skytree, which opened to the public May 22. Though it’s not our mission to ponder the psychology of why people like to go to the top of very tall structures and look down on everyone else, whatever the attraction, it hardly justifies the redundantly blanket media coverage of the new broadcast tower in Tokyo’s Sumida Ward. Of course, the Tobu Railway group, which owns and operates the tower, couldn’t have asked for better publicity. The number of visitors has so far exceeded its own estimates by 50 percent. No one has bothered to calculate the equivalent value in advertising that this free PR represents but it must

Skytree crowds on opening day (Satoko Kawasaki photo)

be in the billions of yen. And it’s paid off. As of last February, group reservations for tickets to the upper observation deck were booked until July 22, amounting to some 300,000 separate admissions. Because a number of people cancel on a daily basis, the operator of the 634-meter tower has decided to sell an additional 1,000 tickets a day to the lower observation deck (350 meters) between June 4 and July 10 at ¥2,500 a pop. The limit for daily admissions is 14,000, but after cancellations the number that have actually shown up is between 12,000 and 13,000. Altogether, 1.4 million
visitors have been in the tower, 85,000 of whom went to the upper observation deck (450 meters), which costs ¥3,500. Reservations must be made with a credit card (only those issued in Japan are acceptable), and there are no refunds. At those prices and those numbers, it should be no problem for Tobu to pay off its massive ¥400 billion construction cost in a matter or years rather than decades.

Tobu isn’t the only party counting on the Skytree to boost its financial situation. Tokyo Shimbun reports that the “economic impact” of the tower should also be felt nationwide to the tune of ¥174.6 billion and in the Tokyo metropolitan area by as much as ¥130 billion. Even more impressive, Sumida Ward expects ¥88 billion, and that’s just in income. Of the eight Tokyo districts where property values rose in 2011, two are in Sumida Ward near the Skytree. However, according to the Mainichi Shimbun there is some talk among Sumida residents of just how much they themselves will benefit in the balance. About 32 million people a year are projected to come to Tokyo Skytree Town and its retail complex Solamachi, which is considerable given that annual admissions to Tokyo Disneyland and Disney Sea total 25 million. But the surrounding area is more residential than commercial and while local merchants are trying to make the most of the tourist windfall, those who simply live there are wondering if the boost is worth all the trouble. How the influx compromises public safety

After the death of analog, whither Tokyo Tower?

Wednesday, July 27th, 2011

As everybody by now knows, Sunday, July 24 marked the end of analog TV broadcasts in Japan. However, the capital’s new broadcast tower, Tokyo Sky Tree, won’t begin sending out digital signals until May 12 next year, which means the iconic Tokyo Tower still has a reason to exist until then. The big question is: Will it have a reason afterwards?

Hey, don't forget me!

According to Tokyo Shimbun, the operators of Tokyo Tower lobbied the key broadcast companies to retain some of their business after Tokyo Sky Tree itself becomes operational. However, all six TV networks have decided to move their broadcast functions to TST. In terms of broadcasting, Tokyo Tower will remain a backup facility in the very unlikely event that TST is down. This will be a big blow to Tokyo Tower. Its revenues in 2010 amounted to ¥5.48 billion — ¥2.9 billion for tourism and ¥2.58 for renting out broadcast functions to TV and FM radio stations.

With the broadcast functions gone, Tokyo Tower will have to rely almost completely on tourism for its income; that and cutting expenses. And even there, TST had the advantage of being newer and taller. It opens to the public on May 22, and Tobu, the main investor, projects a whopping 25 million visitors in the first year. Tokyo Tower’s peak tourist year was 1989, when 3.8 million people visited. Afterwards, attendance dropped to a bit over 2 million by the turn of the century, and then the management implemented an image makeover that included live performances and special events. Attendance creeped up to about 3 million by 2006.

That, in fact, seems to be the strategy. Rather than compete with TST for out-of-towners, Tokyo Tower will makes its appeal to Tokyoites, whom the management hopes will look at the iconic structure with both nostalgia and a sense of permanence. Construction of Tokyo Tower started in 1956 from discarded armaments used in the Korean War, and represents to many Japan’s emergence from its darkest period. Another advantage Tokyo Tower will have over the younger upstart is pricing. Total costs of the Tokyo Sky Tree is estimated at ¥65 billion, and the price of a ticket to the main observatory will be ¥3,000 for adults. Tokyo Tower only charges ¥600 just to get to the top, and ¥1,420 to go to both observatory stations. Will that make a difference? Apparently, the insurance company Daiichi Seimei thinks so. According to a study the company carried out, it projects only 3 million visitors a year will come to TST, the same as Tokyo Tower now.

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