When Commodore Matthew C. Perry of the U.S. Navy sailed his “black ships” into Edo (Tokyo) Bay in 1854 to demand that Japanese ports be opened to American traders, Japan had been living in isolation from the rest of the world for more than 200 years. It was an agrarian, feudalist society ruled by a shogun; the industrial revolution sweeping through the Western world had literally passed Japan by.

Just 160-some years later, the shogun’s castle and surrounding samurai mansions have been replaced by bustling Tokyo, which together with neighboring cities like Yokohama comprise the most populous metropolitan area in the world, with a combined population of more than 37 million residents. Government offices, the Tokyo Stock Exchange, leading industries, key financial institutions and major insurance companies are all located in and around Tokyo, making the metropolis one of the world’s most important economic centers.

Tokyo’s rise to economic powerhouse, however, was not without calamitous setbacks. Although Tokyo, which replaced Kyoto as the nation’s capital in 1868, quickly embraced Western industrialism — not to mention architecture, food and fashion — the city suffered widespread destruction twice in the 20th century: in 1923 due to the Great Kantō Earthquake, which claimed more than 100,000 lives, and in 1945 from Allied incendiary bombs, which took another 100,000 lives. Yet Tokyo quickly climbed from the ashes, and in 1964 it became the nation’s showcase to the world when it hosted the Summer Olympics.

Due to policies favoring domestic industries and shielding Japan from foreign competition, Japan emerged in the 1980s as the richest industrialized nation in Asia and the envy of the world. But after the bubble burst in 1992 due to a myriad of economic disasters — including bad bank loans and overextended corporate investment abroad — the nation sank into recession, exacerbated by the 2008 global financial meltdown (referred to in Japan as the “Lehman Shock”) and the 2011 triple whammy of earthquake, tsunami and meltdown of the Fukushima Nuclear Power Plant 160 miles north of Tokyo.

Tourism plummeted after the Great East Japan Earthquake, falling from 8.6 million international visitors in 2010 to only 6.2 million in 2011. An aggressive tourism campaign launched by the Japanese government, however, brought a record 13 million foreign travelers to Japan in 2014, almost 8 million of whom hailed from China, Taiwan and South Korea. North Americans, also traveling to Japan in record numbers, account for the largest segment of long-haul visitors. Japan’s goal is to increase foreign tourists to 20 million by 2020, the year Tokyo will once again host the Summer Olympics.

“Tokyo offers everything you could wish for, such as history, art, culture, design, fashion, architecture, technology and more,” says a Tokyo City tourism representative. “You can take advantage of a vast variety of excellent food. Tokyo has been consistently awarded the most Michelin stars in the world. Plus, the fantastic public transportation system certainly makes travel much easier. Tokyo is safe, clean, eco-friendly and orderly, so everyone feels very comfortable traveling alone. And don’t worry if you get lost. Tokyoites go out of their way to help you.”

Indeed, poll after poll ranks Tokyo as one of the safest cities in the world. And despite its mindboggling size, the city manages to preserve its unique past while embracing the future, with each of its 23 wards boasting a distinct character and atmosphere.

Public lobby of the Tokyo International Forum © Sean Pavone | Dreamstime.com

In addition to the economic boost of increased tourism and Japan’s gross domestic product ranking as third in the world, there are other indicators that Japan’s long-suffering economy may be emerging from its decades-long recession. Since the start of 2015, the Nikkei (the Japanese equivalent of Dow Jones) has continually reached 15-year highs, while the weaker yen has spurred increased shipment of Japan’s products abroad, including to the country’s two top export destinations, the United States and China. Yet two and a half years after Shinzō Abe was inaugurated prime minister a second time, the verdict is still out on whether his “Abenomics” can counter years of deflationary stagnation by achieving a 2 percent target inflation rate and leading the country back to sustainable growth and global competitiveness.

Part of Abe’s plan for economic recovery is to expand inward foreign direct investment, which often takes the form of mergers and acquisitions in developed countries and is extremely low in Japan. According to surveys conducted by the Japan External Trade Organization and government ministries, the biggest complaints of foreign companies wishing to operate in Japan include a high corporate tax rate, exorbitant office rents, complex licensing systems and perplexing market and administrative procedures. The Abe administration seeks to double inward investment by, among other strategies, ensuring that corporate governance is more open and transparent and promoting deregulation in six National Strategic Special Zones, including Tokyo.

In addition, the Tokyo Metropolitan Government created a Special Zone for Asian Headquarters to attract foreign companies and entrepreneurs to Tokyo. In March, it launched a one-stop office where foreign businesses can complete paperwork related to registration, pension plans, taxes, visas and other required forms, with English interpreters on hand to help with the Japanese documents.

Another obstacle facing foreign companies is finding appropriate personnel, especially employees capable of communicating well in English. Japan has one of the world’s lowest birthrates coupled with one of the most rapidly aging populations in the world (about 22 percent of its population is 65 and older), which translates into a working-age population that is shrinking at an alarming rate. This could be mitigated if Japan overcomes its aversion to immigration and accepts women equally into the workforce. (Last year, Prime Minister Abe announced a goal to fill 30 percent of leadership positions in Japan with women by 2020.) In its favor, Tokyo boasts one of the world’s highest concentrations of higher learning institutions, with more than 100 universities and colleges. In addition, an ever-faster Shinkansen bullet train, including a new line to Kanazawa opened in March, makes Tokyo viable for long-distance commuters.

At a press conference held Dec. 25, 2014, Tokyo Gov. Yōichi Masuzoe announced Tokyo’s long-term vision for the 2020 Olympics and beyond, including increased daycare and after-school facilities so more mothers could work. He pledged to promote English proficiency among schoolchildren and to increase job opportunities. In a bid to restore Tokyo’s position as a global business center, Masuzoe cited drug creation, robotics and medical devices as areas for growth.

As for the 2020 Olympics, the governor said the event would be used as a catalyst to develop Tokyo into a cutting-edge, environmentally sensitive and technologically savvy city of the future. This would include widespread use of vehicles powered by hydrogen fuel cells and an “Olympics road,” already under construction, that will accommodate fuel-cell cars traveling between Toranomon and the waterfront Olympic facilities. The Olympics will also bring better WiFi access throughout the city and digital signage in many languages, making the city more user-friendly.

Shibuya © Sean Pavone | Dreamstime.com

Meanwhile, redevelopment around the city continues, including Ginza, where a new commercial and business tower is scheduled to open in 2016 where Matsuzakaya Department Store once stood, and Shibuya, where the 34- story Hikarie complex of 2012 houses shops, restaurants, a theater and a gallery for Japanese artists. Other changes to come in the area include a massive overhaul of Shibuya Station that will include a skyscraper; rearrangement of train lines, platforms and bus stops; and a larger pedestrian plaza, all slated for completion by 2027.

Just two decades ago, who could have imagined Japan would someday be home to more than 1,000 Starbucks, that Forever 21 stores would dominate fashionable neighborhoods like Shibuya and Harajuku, and that KFC in Japan would become wildly popular for Christmas dinner? Increased international tourism, a more attractive environment for foreign businesses and a user-friendlier infrastructure will almost certainly foster even more opportunities — not surprising, perhaps, considering how much this city has already adapted and changed since Commodore Perry came ashore.

Things to Do in Tokyo

Tokyo Skytree © Sean Pavone | Dreamstime.com

To appreciate the never-ending sprawl of the world’s largest megalopolis, head to its highest point. Opened in 2012 as the world’s tallest freestanding telecommunications tower, Tokyo Skytree contains two observatories and a restaurant that provide 360-degree surreal views over the city. Nearby Asakusa, one of Tokyo’s oldest and most colorful neighborhoods, is famous for Senso-ji Temple, founded in the seventh century, along with shops selling crafts and souvenirs.

Tokyo National Museum houses the largest collection of Japanese art and antiques in the world, including woodblock prints, samurai armor, lacquerware, priceless Buddhist treasures and ancient pottery. For an overview of the capital’s fascinating history, visit the Edo-Tokyo Museum, where captivating displays cover everything from the days of the shogun and the 1923 Great Kanto Earthquake to the 1964 Tokyo Olympics. Find an interesting contrast at the thoroughly modern Mori Art Museum, a gorgeous space that provides eye-popping views from its 53rd-story perch and curates innovative art from around the world.

Of course, no trip to Tokyo would be complete without exploring the city’s many shopping opportunities. Ginza is recognized as the nation’s premier destination for international designer boutiques, art galleries and department stores, but not to be overlooked is nearby Marunouchi Nakadori, a fashionable street lined with trees, sculptures and high-end name-brand shops. It’s part of a massive revitalization of the Marunouchi district by Mitsubishi Estate, which owns much of the real estate here and is rebranding the district as an area attractive to global companies. Between Ginza and Marunouchi lies the Tokyo International Forum, which hosts the Oedo Antique Market — Japan’s largest — the first and third Sunday of every month. Head to Tokyo’s cool neighborhood Omotesando for funky and Japanese-designed fashions.

With some 80,000 restaurants, visitors find no shortage of places to dine, whether it’s for elaborate kaiseki cuisine fit for an emperor or some of the world’s freshest sushi. Nightlife, too, offers endless possibilities, from sophisticated cocktail lounges with breathtaking views to boisterous Japanese drinking establishments. For relaxation, nothing beats the Japanese passion for hot-spring bathing, with Ooedo-Onsen Monogatari, designed like a bathhouse from the Edo era, providing Tokyo’s most atmospheric experience, with both indoor and outdoor baths.

CHECKING IN WITH DEBBIE HOWARD

Chairman, The Carter Group

Having served as the American Chamber of Commerce in Japan’s first female president and founded your own market research consultancy before merging it with The Carter Group, how do you think the business environment for foreigners has changed over the 30 years you’ve been in Japan, especially for women business owners?
Japan has become more foreign-friendly for doing business. In 1985, Japanese consumers were much more prejudiced against foreign products, and Japanese businesses were hesitant to do business with companies who were not Japanese. In the period of economic stagnation that followed the bursting of the bubble in 1992, Japanese society was forced to adjust, and a more open-minded, independent and entrepreneurial spirit emerged. This has had a huge impact on the ease of doing business in Japan for foreigners, male or female. And nowhere is this more evident than in Tokyo.

What industries or business opportunities are best for foreigners wishing to get into the Tokyo market?
The wider metro Tokyo represents approximately 25 percent of Japan’s total population, offering marketers a wide range of demographic and psychographic choices in terms of target markets. Because it is a sophisticated and developed market, competition is tough for everything from cars to smartphones to media and entertainment. On the other hand, Tokyoites are hungry for the best the world has to offer and are accustomed to having access to world-class products and services. Of course, anyone marketing anything in Japan should also consider that the aging population here offers huge potential. And it’s not just wheelchairs, canes and crutches. With a very vibrant over-50 Tokyo urban set, so-called stay-young products like hair dyes, exercise programs, health supplements and fashion also offer companies an opportunity to engage with consumers.

Will the 2020 Olympics create more opportunities for foreign investment?
There has been a very different energy about Tokyo ever since Prime Minister Abe took office in 2012. The announcement in 2013 that Tokyo will host the 2020 Olympics has further fueled the positivity, and the city is abuzz with new construction projects and a sense of optimism that is palpable. That translates into increased opportunities for foreign businesses and investment — for everything from food and beverages to health-related products and onward to IT and media. In addition, we are bound to see increased coverage by the media of Japan and Japanese companies and how they are achieving new successes globally. Uniqlo and Muji are but two of the Japanese companies that are making waves overseas — there will be more!

Tokyo Info to Go

Narita International Airport (NRT) lies 41 miles east of Tokyo. The JR Narita Express departs twice hourly for the 56-minute trip to Tokyo Station and onward to Shinagawa, Shibuya and Shinjuku. More convenient but taking longer (up to two hours to Shinjuku) is the Airport Limousine Bus, delivering passengers directly to major hotels. Tokyo International Airport, commonly called Haneda Airport (HND) and less than nine miles from the city center, is a domestic airport that increasingly serves international flights and offers both monorail and Airport Limousine Bus service into town. Although readily available, taxis from either airport are prohibitively expensive (around $200 from Narita).

Tokyo: Just the Facts

Time Zone: GMT +9
Phone Code: Country code: 81 City code: 3
Currency: Japanese yen
Entry/Exit Requirements: U.S. citizens need only a valid passport for stays up to 90 days.
Official Language: Japanese
Key Industries: Electronics, printing and publishing, transport, communication, finance, insurance, wholesale and retail, eating and drinking establishments

Where to Stay in Tokyo

Andaz Tokyo Toranomon Hills Mesmerizing views from the upper floors of a 51-story high-rise contrast nicely with the understated elegance of this 164-room hotel; not to be missed is the open-air Rooftop Bar. 1-23-4 Toranomon, Minato-ku $$$$$

Conrad Tokyo Just a short walk from Ginza, this 290-room property offers fantastic views over Tokyo Bay, an impressive collection of Japanese artwork and one of the city’s largest spas and fitness centers. 1-9-1 Higashi-Shinbashi, Minato-ku $$$$

The Tokyo Station Hotel This 100-year-old hotel, providing easy access to Narita Airport and the Shinkansen, underwent massive renovations that restored its 150 guestrooms and public spaces to their historic splendor. Tokyo Station, 1-9-1 Marunouchi, Chiyoda- ku $$$$

Restaurants in Tokyo

Ten-Ichi In business since 1930, this tempura restaurant with Zen-like décor and kimono-clad waitresses has served delicate morsels of deep-fried food to everyone from Bill Clinton to the Gorbachevs. 6-6-5 Ginza, Chuo-ku $$$$$

Tokyo Shiba Tofuya-Ukai Private tatami rooms overlooking exquisite Japanese gardens provide the perfect complement to the beautifully arranged set meals served in this traditional Japanese restaurant specializing in tofu. 4-4-13 Shiba-Koen, Minato-ku $$$$$

Two Rooms Grill/Bar Tokyo’s well-heeled urbanites flock to this smart-looking restaurant for its Wagyu beef, contemporary cuisine and adjoining bar complete with outdoor terrace and comfy sofas. 3-11-7 Kita-Aoyama, Minato-ku $$$$$