Hiroaki Araki - Interview
“Whatever you do, you need to take action.”
From Japan to the World: Hiroaki Araki on Revitalizing Machiyas and his Entrepreneurial Vision
Interview: Nick Clarke
In an insightful interview, Hiroaki Araki, a visionary entrepreneur with roots in Tokyo and a formative journey spanning across Australia, delves into the origins and ethos behind his innovative accommodation business.
The driving force behind MACHIYA INNS & HOTELS, Hiroaki Araki has reimagined traditional Japanese hospitality by converting historic Machiya houses, known for their distinctive architectural style, into comfortable lodgings. These historical dwellings are transformed into unique accommodations for travelers seeking an immersive cultural experience in Japan.
Hiroaki’s approach combines a deep respect for culture, entrepreneurial spirit and constant innovation, showcasing a business that bridges traditional values with global collaboration. He opens up about the personal journey that led him to this venture, his inspirations and the daily practices that keep him grounded amidst his ambitious projects.
To kick things off, can you tell us a bit about yourself, your background and the early days of your business?
Hiroaki Araki:
I grew up in Tokyo but I moved to Australia when I was 16 years old to study abroad. I first went to Adelaide where I stayed with a host family. Initially I was not able to speak English at all, but I went on to attend high school and university in Adelaide. I moved to Cairns in northern Australia after finishing university. While I was there I worked at the Shangri-La Hotel as part of the bellboy and guest relations team. It was a great opportunity for me to meet people from all over the world. Growing up in a multicultural society was the basis of what inspired me to start my own business.
Living in Australia also allowed me to see Japan from a different perspective. My friends often asked me about the culture and customs of Japan. The more information about Japan I shared with them, the more I was able to recognise and appreciate things about it. This gave me a lot of ideas to start a business when I returned to Japan. I was aiming to share Japan with people from overseas. At that time I was able to really notice things that I had missed when I lived there. For example, my friends gave me an idea of how people from overseas view Japan when they mentioned what they liked and disliked about the country.
When I was 29 years old I returned to Japan to start my accommodation business. During a meeting in Kyoto I learned about Machiyas for the first time. That is when I knew I wanted to create my business based on these houses. The concept was to combine Machiyas with hospitality focused on people from other countries visiting Japan. That is how I came up with the idea for my business.
I understand how you gathered your perspective, but we're keen to understand the 'why' at the heart of your story. What motivates you to keep expanding your business?
Hiroaki Araki:
The reason is that I want to connect people from overseas to Japanese culture and traditions. I aim to encourage more people from around the world to come to Japan and experience the local Japanese lifestyle. That is why I choose to stay in Japan and conduct my accommodation business through Machiya properties.
When you were starting your business, or maybe at any critical point along the way, what was a significant challenge that you faced and how did you overcome it?
HiroakiAraki:
I would say I face challenges daily. However, I have always tried to maintain a positive mindset to move past obstacles I encounter. For any entrepreneur, starting something from scratch is the most challenging part.
When I was starting, my critical challenges were having no money, no experience in the business, no outstanding results and no trust from the hotel industry. All I had was my mindset, the belief that I could do it and confidence in what I was doing to move forward. To start your own business or to create something from 0 to 1, I have learned that I must be confident in what I have not yet done or achieved. I believe that is the most important thing to consider as an entrepreneur.
How did you do that? How did you gain confidence and take action?
Hiroaki Araki:
To gain confidence and take action, I approached many people and shared my vision for my hotel business. I spoke to perhaps more than 50 individuals to explain my business concept and what I aimed to achieve. Through this process of reaching out and communicating my ideas, I was able to start my business. I believe taking action and engaging with numerous people about my goals was crucial to getting started in my business.
What was the essence of what you were trying to do? What was the unique selling point or the unique element that you believed could take you from zero to one?
HiroakiAraki:
Back when I was starting out, the Japanese inbound travel market was considered a minor business, with few companies targeting overseas visitors coming to Japan. My business proposition was something new to the industry. My angle was that I focused 100% of my outreach on people from overseas. This was influenced by my background and my desire to utilise Machiya houses. I believe this helped me gain the support I needed to start my business.
What were the valuable lessons that you learned from those early challenges and the hustle?
Hiroaki Araki:
I have learned that, whatever you do, you need to take action. It's like, you just never give up on what you want to do. There is no definitive answer. You need to keep engaging in trial and error, always trying to improve. You will make many mistakes, but the key is to learn from those mistakes and aim to do better next time. That's the lesson I have learned, and I continue to learn it every day.
You mentioned you frequently deal with challenges. What obstacles have you faced and how do you overcome them?
Hiroaki Araki:
It's not a daily occurrence, but there are many challenges in business, of course. For instance, when COVID-19 hit, my business essentially came to a halt. I haven't shared this widely, but it was a very difficult period to go through. It would have been easier to give up, especially since our international customer base could not visit Japan. I never considered giving up, though.
I constantly looked for new solutions and things I could do to navigate through these challenges. During COVID, we adapted our business model to offer our accommodations as a workspace for remote workers. This allowed people to use our spaces, even for just a few hours. Regardless of what happens, I always seek out solutions and take action immediately to improve my circumstances, whether in my personal life or my business.
Do you think the dynamic of your business changed prior to COVID-19 compared to after? For example, do you find that the hospitality industry became more fluid or receptive to change following COVID?
Hiroaki Araki:
Our main customers are people from overseas, and this hasn't changed at all. But I think that as a company we have improved our skills in marketing and other areas, and we've established more international and domestic connections along the way.
How do you think you have learned more about the domestic market following COVID?
Hiroaki Araki:
Yes, we have definitely seen an increase in domestic customers now compared to before COVID. And while we are seeing more international visitors now, there is definitely a noticeable increase in domestic interest. On top of that, we're also managing more properties. The company itself is expanding, so that means more staff members are needed. Naturally, I've had to learn more about managing a growing team and scaling a business.
Regarding the increase in domestic customers you saw during COVID, did that trend continue? Are you still seeing a higher number of domestic customers now?
Hiroaki Araki:
Yes, our domestic customer base is definitely still strong. About 75% of our customers are from overseas right now. Before the pandemic hit, this number was more in the range of 80-85%. From those numbers, it's clear that our domestic customer base has grown.
What does a typical day look like for you? How do you maintain your creativity and ensure that you are always ready to act on your ideas?
Hiroaki Araki:
To answer your question, I make it a point to get 6 to 8 hours of sleep every night. It's crucial because you can not do anything well without enough rest. When I wake up my first activity is to catch up on the news. I pay close attention to the financial markets and global developments in the business scene. I do this to stay informed about new technologies and innovations, especially those emerging in other countries. This includes lots of news from the United States because I find that there's always something exciting happening there.
I also make it a part of my routine to go for a walk almost every day. It helps me clear my mind. Whether I'm in Kyoto, Tokyo, Kanazawa or Takayama I try to find the time to take these walks. It’s not just about the physical movement, it's about observing people, taking notice of my surroundings and refreshing my perspective—kind of like a reset for me.
What role does music play in your routine? Do you listen to it during work or only in your leisure time?
Hiroaki Araki:
When it comes to work, I always listen to relaxing music. Instrumental music helps me concentrate on my tasks and jazz is another favourite.
Additionally, when I'm working out or driving I find myself listening to music quite a bit. I still enjoy a lot of the music I listened to back when I was in Australia, like mid-nineties hip-hop. Artists like A Tribe Called Quest, Common and big names like KRS-One.
I also like listening to ska-punk music since that's what all my friends in Australia listened to during my high school days. I still listen to Sublime, for example, and lots of West Side ska-punk music.
When it comes to Japanese music, I'm a fan of DJ Krush, who is a pioneer of Japanese hip-hop. His work is mostly instrumental hip-hop music. For J-pop, The Blue Hearts are my go-to. They were, like, the first ska-punk band in Japan back in the eighties. Listening to music motivates me, clears my mind and takes me back to the good old days in Australia.
Does listening to older music serve as a reminder of why you are pursuing your business? Is it like a time machine that takes your mind back to your dreams and aspirations from that point in your life?
Hiroaki Araki:
That's exactly right. You see, if I hadn't moved to Australia when I was 16 years old, my life would've taken a completely different path. I would not be doing what I am doing now. Living in Australia, making friends from diverse backgrounds and experiencing a multicultural environment opened up so many opportunities for me.
What are your aspirations for the future? Where do you see your business heading?
Hiroaki Araki:
In the future I am looking to expand my business even further. We currently operate in Kyoto, Kanazawa and Takayama. We are aiming to extend our reach to many other cities across Japan so that we can accommodate more visitors. I'm interested in taking my business to international markets in order to inspire more people with what we do. I am constantly setting new goals and embracing new challenges, so there's always something to strive for.
How about the industry at large, beyond just your company? What is your perspective on how it may change in the future?
Hiroaki Araki:
I think the opportunities within Japan’s inbound travel market will be growing even more in the years to come. While we currently focus on major cities, we are also looking to expand into lesser-known regions that have not yet been explored. I see our industry expanding significantly in the future.
If you were to give advice to not just our readers but to someone thinking about entering your industry—be it running inns, hotels, or focusing on hospitality with an inbound emphasis—what would you suggest to them?
Hiroaki Araki:
In addition to maintaining the traditions and authenticity of Japan, I think we also need to adopt the perspective of overseas visitors. It is crucial not just to view Japan from our standpoint but to also understand what Japan represents for them. This is very important knowledge I gained from living abroad in Australia and talking with my friends there. I've learned to appreciate what foreign visitors want to do and see when they come to Japan.
To succeed in Japan's inbound market, we must not only showcase what we think of Japan from our perspective, but also concentrate on how it is perceived by those from other countries. Understanding the viewpoint of international visitors when they come to Japan is essential in this industry.