Tokyo Dome Corporation sits on a treasure trove of assets that have been undermanaged:
1) Tokyo Dome
The Company owns and operates Tokyo Dome, one of the largest stadiums in Tokyo, with capacity for 57,000, and home to the Yomiuri Giants major league baseball team and Japan’s Baseball Hall of Fame and Museum. Baseball is Japan’s most popular sport, and the Yomiuri Giants are Japan’s oldest and most popular baseball team, consistently drawing the highest attendance in the NPB (Nippon Professional Baseball Organization).
Despite this, Tokyo Dome has failed to meaningfully grow revenue or profitability, and revenue per guest has not changed in the past seven years. Further, Tokyo Dome did not host any events for the 2019 Rugby World Cup, and is not slated to host a single event for the Tokyo 2020 Olympics, missing out on a potential revenue windfall and a chance to take part in one of the world’s largest and most televised sports competitions, right in its own backyard.
2) Tokyo Dome Hotel
Despite increased tourism to Japan and growing average room rates in Tokyo, the Tokyo Dome Hotel has witnessed declining revenues and occupancy over the last two years. Reviews from guests staying at the Hotel mention worn carpets, aged furnishings and drab rooms and amenities. The Hotel has not capitalized on the strength of the MICE (meetings, incentives, conferences, and exhibitions) market in Japan, which ranks fifth globally and is growing annually.[1] This market presents a substantial opportunity for Tokyo Dome Hotel considering its location, group facilities, and large number of guest rooms.
3) Tokyo Dome City Attractions Theme Park
Tokyo Dome’s theme park, Tokyo Dome City Attractions, has also failed to capture Japan’s tourism growth and failed to invest in new attractions and modernized ride experiences. As such, its classic rides have failed to compete with the unique and ever-evolving experiences offered at Tokyo Disney or Universal Studios Japan today. While attendance has grown, it has meaningfully lagged the growth in Japanese tourism over the last five years.[2] An even more striking metric is revenue per attendee, which has declined by 27% since 2012, and in fiscal year 2019 was 618 yen.[3] This is roughly equivalent to $5.70 and is barely in excess of the fare charged for a Tokyo Metro day pass. By comparison, Tokyo Disney reported revenue of 11,614 yen ($107 USD) per visitor.
Low revenue per visitor is especially troubling for Tokyo Dome City Attractions, which does not charge visitors an admission fee to the Park and instead relies on visitors to purchase attraction tickets once inside. At such low spending levels, it is difficult for the Park to be profitable while still adhering to the safety and quality standards expected by its guests.
[1] Source: Events Industry Council study
[2] Attendance and revenue based on company disclosure of Tokyo Dome City Attraction and ASOBono! indoor kids play park, as the Company does not break out these metrics individually.
[3] Source: Company YUHO, 2019
