After years of unrivalled dominance by Europe and North America, Asia has finally started producing its own ski resorts capable of luring skiers from all over the globe.

Spurred by a wave of foreign investment led by Australians, the formerly sleepy town of Niseko on Japan’s northern island of Hokkaido has been transformed into a world-class ski destination.

According to long-time local operators interviewed by InvestorTV, Asian investors and tourists have now discovered the area, sparking a new growth phase set to last at least a decade.

Former Melbourne restaurateur Simon Robinson says he and his partner were lured by the area’s pristine powder snow – and by the opportunity to establish a new market for upscale travellers through the launch of their luxury accommodation company, Hokkaido Tracks.

“The first Aussies started coming to the area around 20 years ago, and they were mainly targeting the backpacker market,” he says.

“The Japanese pensions and hotels that existed then just weren’t equipped with the services and facilities that you need for international guests.”

Mr Robinson says he discovered the area around five years ago, and with regulatory changes opening up property ownership to foreign investors it was ready for a boom.

With a ski season from November to May, a similar time zone to Australia’s and relatively short flying time compared to Europe or North America, Niseko hits all the right marks for skiers. But the attraction runs deeper, the company president says.

“The biggest thing is the cultural difference – New Zealand and America are culturally similar to Australia, while Europe is crowded,” he says.

“Japan is probably the most Western friendly of any of the Asian cultures that you could find.”

Multi-million dollar investments from Australian and other foreign investors have boosted the regional economy of Hokkaido by over 10 billion yen in the three years to 2006, with the number of Australian tourists tripling to reach over 20,000 a year.

Despite land values having doubled over the past three years, Mr Robinson says it’s not too late for new investors.

“It’s still very cheap here – you can get land in locations that you just can’t get in other parts of the world,” he says.

He says investors can expect an annual return of around 5 per cent net, with prices ranging from AUD$400,000 up to $1.2 million.

Long-time Niseko resident Ben Kerr, head of Niseko Real Estate, says while the Australians may have led the way, Asian investors and tourists are becoming even more important to the area’s economy.

“We’re experiencing very strong growth from Asia at the moment – the first investors were from Australia, but the last year or two we’ve had strong investment from Singapore, Hong Kong and China and the feeling is that side will probably outgrow the Australian investment that’s coming in,” he says.

Citing a growing number of skiers from snow-rich nations such as Canada and the United States, Mr Kerr says the “Japanese experience” is also a major lure.

“I believe we’ll continue to see strong growth for at least the next five years,” he says.

With a string of new bars, restaurants and hotels, coupled with a new major development at nearby Moiwa (Citimark’s Niseko Mountain Village), Mr Kerr sees no sign of a slowdown in the white gold boom.