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Regional Revitalization

ORIX contributes to the revitalization of local communities through concessions business, agriculture business, Japanese inn management business (ryokan), etc. In airport management, as a concession business, we are working to increase activity and tourism demand in cooperation with local companies and governments.
In the agriculture business, we aim to contribute to the development of agriculture in Japan by designing business models that incorporate new operation systems such as large hydroponic cultivation facilities and plant factories with artificial light. In addition, in managing the inns, especially regarding the renovation of historic ryokan in various areas, we are focusing on continuously employing local employees and are working on creating attractive facilities that contribute to a greater number of tourists.

Concession business

In the concession business, private enterprises are responsible for the operation of public facilities such as airports, roads, and water supply and sewage systems, while public entities retain ownership. Japan’s overall population decline and the shift of populations away from rural areas to urban areas are leading to lower local municipal revenue causing infrastructure to age, which in turn dampens local economic activity. To address these social issues, the Japanese government is promoting concessions to revitalize local economies and enhance fiscal soundness through infrastructure improvement, and ORIX Group is energetically answering this call.
Our first concession business was Kansai Airports, established by a consortium led by ORIX and VINCI Airports of France, to operate Kansai International Airport and Osaka International Airport (Itami Airport). This was the first full-fledged airport management business by the private sector in Japan, and took over the operation of both Kansai International Airport and Osaka International Airport from New Kansai International Airport Company on April 1, 2016. The operation periods of Kansai International Airport and Osaka International Airport are 44 years.
In addition, ORIX Group began the operation of Kobe Airport from April 1, 2018 through a subsidiary, with an operating period of 42 years. We aim to balance our social responsibility as public infrastructure operators with our private sector creativity and dynamism to continue to develop the three airports and the Kansai region where these airports are located.
To increase routes and passengers to the airports requires enhancing the attractiveness not only of the airports, but also of the surrounding areas. Kansai Airports is constantly enhancing its airport facilities and collaborating with local businesses and governments to increase business and tourism demand.
In Hamamatsu City, Shizuoka Prefecture, ORIX Group began operation of the Hamamatsu City Public Wastewater Treatment Plant (Seien Treatment Area), the first domestic concession business in the water supply and sewage sector, on April 1, 2018. The operating company is Hamamatsu Water Symphony K.K. (HWS), which was established jointly by ORIX Group and local companies as well as the Japanese subsidiary of Veolia of France, with a project duration of 20 years. By leveraging the unique expertise of each HWS shareholder company, we aim to provide safe and secure sewage services to the local population. In addition to reducing the environmental impact of the plant through our environmentally conscious business management policies, we are also planning measures to realize a sustainable Hamamatsu City, such as participating in activities supporting regional industry and events.

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Agriculture business

ORIX Group expects that regulatory reform and changes in the Japanese economic operating environment will make agriculture a growth business over the long term. We intend to contribute to the development of Japan’s regional economies through a highly competitive, high-value-added agriculture business.

ORIX Agriculture (Established in February 2014)
In Hyogo Prefecture, we are using a closed school building to operate a plant factory that grows lettuce and other vegetables using completely artificial light. The interior of the factory is sealed off from the outside atmosphere, which enables cultivation of vegetables without agricultural chemicals due to the reduced risk of contamination and makes the factory resilient to the effects of the seasons and weather. Moreover, because of the hygienic environment, we are able to minimize the produce washing process, increasing the vegetables’ nutritional content while lowering washing costs and related environmental impact. Production is stable and highly efficient because monocropping is not an issue.
We have created employment in a depopulated area by making effective use of a closed school, and we are producing and consistently supplying safe, reliable and delicious vegetables using rigorous sanitation management.

ORIX Yatsugatake Farm (Established in April 2015)
In Nagano Prefecture, we established an agricultural corporation in cooperation with Honda Engei Co., Ltd. to produce leafy vegetables such as spinach in hydroponic cultivation facilities using natural light. We control the environment and manage nutrient solutions in the greenhouse to enable 19 efficient harvests throughout the year regardless of the season while creating stable jobs for the community. We employ ORIX Group’s sales network to sell the vegetables directly to customers such as retailers, restaurants, and food manufacturers. We intend to establish a more stable production system and an efficient direct distribution and sales model, thereby contributing to the local community and expanding regional employment.

Yabu Farm (Established in June 2015)
We established Yabu Farm Corporation, an agricultural production corporation, in Yabu City, Hyogo Prefecture. We established the corporation with local partners including Yabu Partners Corporation, a wholly owned corporation of Yabu City, Japan Agricultural Cooperatives Tajima, and local agricultural producers. Yabu Farm has a cooperative system that locates production, sales and logistics in Yabu City, and is building a new agricultural business model in an agriculturally disadvantaged mountainous and intermountain area.
Approximately 73% of Japan’s land area and 40% of the land under cultivation is located in agriculturally disadvantaged mountainous and intermountain areas. Yabu Farm has become a model agricultural business for such areas throughout Japan, which face issues similar to those of Yabu City. Yabu Farm produces safe, reliable and delicious vegetables through new supply chains and makes agriculture more profitable while promoting further revitalization of communities.

Smart Agriculture IWATA (Established in April 2016)
A joint venture with Fujitsu Limited and Masuda Seed Co., Ltd. in Shizuoka Prefecture, Smart Agriculture IWATA Co., Ltd. has the goal of agriculture-based regional revitalization. It produces bell peppers, palermo, kale and other vegetables in a large-scale, controlled environment facility that uses information and communication technology. The project employs sensors, big data, AI and other technology to increase the productivity and quality of agricultural products and create a new food and agricultural business model that spans the value chain from seedlings, production and processing to shipping, sales and more. Our goal is to collaborate closely with the local city of Iwata to contribute to the regional economy through regional branding and the creation of stable employment.

Foundation Name of Corporation Manufacturing Location Investment Ratio Business Summary
February 2014 ORIX Agriculture Corporation Yabu City, Hyogo Prefecture ORIX 100% Plant factories with artifical light.
April 2015 ORIX Yatsugatake Farm Corporation Fujimitown, Suwa County, Nagano Prefecture ORIX 97%
HONDA ENGEI 3%

A hydroponic cultivation facility that cultivates leafy vegetables such as spinach, edible chrysanthemum, watercress and rocket.

June 2015 Yabu Farm Corporation Yabu City, Hyogo Prefecture ORIX Agriculture 46%
Tajima Agricultural Cooperatives Tajima 17%
Yabu Partners 3%
Local Farmers 34%

Cultivate rice in open field cultivation and a hydroponic cultivation facility that cultivates leafy vegetables such as spinach, edible chrysanthemum and watercress.

April 2016 Smart Agriculture Iwata (SAC iWATA) Co.,Ltd Iwata city, Shizuoka Prefecture Fujitsu 51%
ORIX 39%
Masuda Seed 10%
Cultivate leafy vegetables such as bellpepper, palermo and keel at an ICT-based, controlled- environment cultivation facility.

In July 2016, we established ORIX Food Supply initially for fruit and vegetable distribution, and through this company, but now we are also engaged in the purchase and sales of fruits and vegetables, with a particular focus on vegetables produced in-house.
Furthermore, in July 2017, we entered into a capital and business alliance with Farmind Corporation which builds fruit and vegetable distribution networks nationwide. 
We will further expand our agricultural business by utilizing the know-how we have cultivated through our own production and our distribution network that connects fruit and vegetable producers and retailers nationwide.

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Operation of Japanese Inns

Since entering the Japanese inn business in 2002, ORIX Real Estate has been involved in the operation of nine hot spring resorts. Our business of restoring historic Japanese inns in various locations has emphasized protecting the jobs of local employees. Moreover, the increased number of guests drawn by investment in new facilities and improved service levels has also helped to vitalize local economies by increasing the number of tourists.

Seven Japanese Inns with Hot Springs Operated by ORIX Real Estate
Name Address Opened Number of Rooms Capacity
Beppu SUGINOI HOTEL Beppu City, Oita Prefecture September 2002 647 2,914
Aizu Higashiyama ONYADO TOHO Aizuwakamatsu City, Fukushima Prefecture June 2004 160 860
Atami OHTSUKI HOTEL WAFUUKAN Atami City, Shizuoka Prefecture November 2005 28 120
HOTEL MICURAS Atami City, Shizuoka Prefecture January 2007 62 196
Kurobe Unazuki YAMANOHA*1 Kurobe City, Toyama Prefecture June 2014 141 846
Hakodate Yunokawa HOTEL BANSO Hakodate City, Hokkaido October 2015 91 328
Hakone Ashinoko HANAORI Ashigarashimo County, Kanagawa Prefecture August 2017 154 496
Naruko Hotel*2 Osaka City, Miyagi Prefecture December 2006 128 550
Tateshina Grand Hotel Takinoyu*3 Chino City, Nagano Prefecture September 2011 154 721
  1. Changed from "Unazuki Suginoi Hotel" in September 2018
  2. ORIX began supporting Naruko Hotel from December 2006. The former management team reacquired hotel business rights and assets as of October 31, 2011 and completed the rehabilitation.
  3. ORIX begun supporting Tateshina Grand Hotel Takinoyu from September 2011. The hotel business was transferred in April 2019.
Beppu SUGINOI HOTEL after ORIX Investment
  Operation Rate Number of Guests Initiatives
2003 52% 251,000 Open air bath “Tanayu”
2008 68% 345,000 Buffet restaurant
2015 100% 628,000 Direct marketing
2016 100% 670,000 Theater-type buffet restaurant
2017* 91% 641,000 Open-air buffer restaurant
2018 97% 699,000 Fitness center (Gold's Gym)
  • Decrease from previous year due to impact of Kumamoto earthquakes in April 2016.

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