In the ski resort town of Kutchan, developers propose housing for foreign workers, which is stirring heated opposition from residents and local officials. Meanwhile, the plan unfolds amid labor shortages in Japan’s ski tourism sector and raises fundamental questions about community identity and labor policy. On a plot of former farmland near Niseko’s slopes, developers intend to build lodging for up to 1,200 seasonal staff. Most employers will recruit foreign workers for ski resorts and construction. As a result, residents have petitioned the government to block the project, citing safety concerns and strain on local infrastructure.
Kutchan sits in Hokkaido, a region whose economy relies heavily on winter tourism. Therefore, the dispute highlights how desperate operators are to secure labor as Japan’s population shrinks and ages rapidly. In 2023, Japan’s tourism industry had already become its second-largest export. Developers submitted the project in July 2025. It would convert about 2.7 hectares of farmland—just 700 meters from the JR Kutchan Station—into multi-story housing. The agricultural committee met in late July and unanimously opposed the farmland conversion, citing safety, public order, and lack of consensus among residents. Now, a decision rests with the governor.
The company behind the plan, a real estate firm in Kutchan linked to foreign investment, already held contracts with construction firms anticipating a September 2025 start. However, that timeline is now uncertain given local resistance. Residents submitted a petition with 262 signatures and voiced worries about crime, overcrowding, and impact on community cohesion. Many point to the presence of children, schools, and limited public services in the area. For them, sudden density and a largely unfamiliar workforce represent a major shift.
Proponents argue the housing is essential. Ski resort operators say they struggle to recruit locals to seasonal, low-pay jobs in remote locations. With domestic labor supply falling, the housing would provide stability for workforce deployment. Experts see this dispute as emblematic of a national dilemma. Japan recorded a record jump in foreign worker numbers in recent years, reaching over 2.3 million in October 2024—a surge driven by shortages in manufacturing, hospitality, and construction sectors. The increase was the largest year-on-year gain since record keeping began.
Some analysts warn that local backlash may hamper necessary infrastructure expansion in tourism regions. If communities resist housing for outside labor, resorts may face deeper staffing crises, curbing growth in inbound tourism. Others argue that sustainable development must pair labor policy with community consultation. Observers will watch the governor’s decision closely. If rejected, operators will find offsite or private housing. If approved, developers still must manage local acceptance and integration.
Policies may also shift. Central government and local administrations may expand visa schemes or improve worker protections to ease tensions. Additionally, dialogue between locals, operators, and planners will probably intensify in resort areas nationwide. The debate over foreign workers in Kutchan encapsulates a larger national crossroads. Japan seeks labor to sustain economic sectors, yet must also preserve local trust, safety, and identity. Ultimately, the coming months will test whether growth and community cohesion can coexist.
