Japan has changed its tax laws to encourage galleries and fairs to expand into the country and is looking for other ways to compete in the global art market, reports Nikkei Asia. Efforts come because Hong Kong, a major arts center on par with New York and London, is grappling with the increasing application of a national security law that could scare artistic expression.
Japan, which was a growing force in the art market in the late 1980s due to its economic prosperity, now accounts for only 4 percent of the global art market, compared to China as a whole, which accounts for 20 percent due to sales from mainland and Hong Kong collectors Art Basel, the world’s largest art fair, takes place here every year. In addition, Hong Kong has invested heavily in major art institutions in recent years, such as the soon-to-be-opened M + Museum and the burgeoning West Kowloon cultural district, and this is widely seen as spurring the art market there. “Facilitating art deals with customs makes sense, but it is first necessary to lay a foundation for art in the country,” noted Katsura Yamaguchi, head of Christie’s Japan. “For example, the opening of a branch of a world-famous museum, just like the Bilbao Guggenheim in Spain, can not only attract tourists but also people interested in art.”
To its advantage, Japan has the third largest number of dollar billionaires in the world after the United States and China and continues to be a major draw for foreign tourists. Last February, Tokyo officials led by Minister for Regulatory Reform, Art Galleries, Auctions and Art Fairs led by Taro Kono enabled the sale or display of traffic art via the country’s free zones, potentially saving them millions of dollars in tariffs and savings in tax payments.
“These changes [in Japan] will just cause a lot of excitement that will generate a reaction from the art world as long as collectors keep popping up, ”said Marc Glimcher, head of the Pace Gallery. Pace, which closed its Beijing outpost in 2019 due to U.S.-China trade issues, is expanding its presence in Seoul and considering entering Japan, Glimcher admitted. “If Japan really reopens,” he said, “it has the potential again to become one of the centers of the art market in Asia.”
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