Photo/Illutration Officials of the Yamanashi Prefecture Mount Fuji Conservation and Tourism Ecosystem Promotion Group speak at a news conference on the feasibility study for the Mount Fuji railway plan in the prefectural government office on Sept. 20. (Norikazu Miyake)

KOFU--The Yamanashi prefectural government is touting the economic ripple effects from its proposed plan to build a railway up to the fifth station of Mount Fuji, estimating that it could generate 1.56 trillion yen ($10.8 billion) over four decades.

The report, which includes economic projections and financial analyses, was released by the prefectural government on Sept. 20.

A prefectural official said at a news conference that the railway, with an estimated round-trip fare of 10,000 yen, is expected to attract “a high proportion of middle- and upper-income travelers.”

Officials also outlined plans to develop a resort near the fifth station of the mountain, including a luxury hotel with around 40 rooms to cater to these well-heeled visitors.

An international conference center for politicians and business travelers would be constructed around the base station at the foot of the mountain.

Collaboration with nearby tourist facilities such as the Fuji-Q Highland amusement park is also being considered.

The prefectural government estimates that these projects would create employment for 120,000 people over 40 years.

It is considering three operational models: government-led construction and operation; private sector-led construction and operation; or a split system where the government handles construction while private companies manage operations.

All models are expected to be profitable.

The prefectural government has identified the split system―where the prefecture would build the tracks and stations, while private companies own and operate the trains and power facility―as the most suitable approach as it balances risk between the public and private sectors.

The prefectural government estimates that if 3 million passengers ride the railway annually at a round-trip fare of 10,000 yen, the project could yield a profit of 600 billion yen over 40 years, even after taking initial investment and maintenance costs into account. 

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