DMO’s Independent Funding and Business Expansion Process by Revitalizing Traditional Houses

For Machidukuri Obama in Fukui prefecture

Abstract

Many Japanese Destination Marketing/Management Organizations (DMOs) heavily rely on government funding, including designated management fees and subsidies. This study addresses the need for DMOs to create self-sustaining financial sources using local assets and examines Machizukuri Obama Company Limited (Obama Tourism Bureau) as a case study. This company pioneers independent financial growth by restoring old private houses to rental vacation houses. In the early years of the project, It used city funds and subsidies to set up product sales at a roadside station (Michi-no-Eki) and restaurants for local consumption. The bureau used the sales to launch and expand an enterprise rejuvenating old residences. Through these efforts, the company reduced the city's stake in the company and establishes independent management.