Kyoko Hattori, vice president of Pace Japan, is making a bold statement about Tokyo's potential to become Asia's premier art destination. Following the conclusion of Tokyo Gendai's third edition in its new September time slot, Hattori expressed her ambitious vision for the Japanese capital's art scene. "I want Tokyo to be the center of art in Asia," she told the Japan Times. "I want to see it happen."
Pace Gallery's arrival in Tokyo last year has been viewed locally as significant evidence that the city has reached a new level of international recognition in the art world. The prestigious gallery is now the only major international art dealer with a location in Tokyo, unless one includes Perrotin, which operates three spaces in the city and has maintained a long-standing relationship with Japan and its artists. The opening of Pace's gallery in the luxurious $4 billion Azabudai Hills development was treated as a major milestone, similar to the launch of Tokyo Gendai in 2023, with journalists and international collectors flying in to attend the opening ceremonies.
International art dealers are taking notice of Tokyo's growing significance. Sundaram Tagore, a New York-based dealer, told Nikkei in September that Pace is being viewed as a guide for other galleries considering expansion into the Japanese market. This increased interest comes alongside encouraging market data that suggests Japan is bucking global trends. According to the most recent UBS Art Basel Art Market Report, Japan experienced 2 percent growth last year, even as the broader international art market contracted by 12 percent.
Japan's performance stands in stark contrast to its primary Asian competitors. China, including Hong Kong, saw a significant 31 percent drop in art sales, while Korea experienced a 15 percent decline. However, Japan still operates on a much smaller scale compared to Asia's leading market. China accounts for 15 percent of global art sales by value, while Japan holds just 1 percent of the market, the same as Korea.
For decades, Japan's art scene was characterized as being primarily local and inward-looking, but recent developments suggest this may be changing. Marc Glimcher reported strong sales at Tokyo Gendai, particularly noting that works by Robert Longo "flew off the walls," selling mainly to Japanese collectors. "I don't know who these people were, but they flooded in," he said, expressing surprise at the enthusiasm of local buyers.
Tagore, who also exhibited at the fair, described a robust response to his gallery's internationally focused programming. "I take that as an indication that the audience in Japan is becoming more connected to the international art world," he explained. This shift represents a significant departure from Japan's historically insular approach to art collecting and consumption.
This isn't the first time the international art market has focused attention on Tokyo. During the economic boom years of the 1980s, Japanese collectors were paying record prices for Western art, making headlines worldwide. However, what makes this current wave different is that it's occurring during a broader global market slowdown, characterized by more cautious spending and deliberate purchasing decisions.
Both Glimcher and Hattori suggest that this more measured approach to art buying actually suits Japanese collectors well. "Tokyo has not been part of that over-excess," Glimcher told the Japan Times, referring to the speculative buying frenzy that characterized the post-pandemic art market. Hattori echoed this sentiment, noting distinct characteristics of Japanese collectors that set them apart from their international counterparts.
"I find Japanese collectors are less focused on investment value," Hattori explained. "It's less transactional, which I think is great. They do not hire advisers. If you visit a Japanese collector's home, each collection is very different. If we bring them global, high-quality works, they are very enthusiastic to buy. They're not interested in parties, but they really want to enjoy art."
Despite the optimism, significant structural challenges remain for Tokyo's ambitions to become Asia's art center. Tax issues have been a persistent problem, though there have been some recent improvements. According to Nikkei, international galleries and art fairs can now avoid a 10 percent upfront tax on artworks brought in for sale by applying for free-port status. While the tax still must be paid, it's only required once the artwork is actually sold, providing more flexibility for dealers.
The Japanese government appears to recognize the importance of addressing these challenges. A report published last year by the Ministry of Economy, Trade, and Industry called for increasing investment in and demand for art to help promote industrial restructuring. These governmental moves have contributed to Glimcher's optimism about Tokyo's future prospects.
"If Japan can continue to recruit more galleries, and if the government makes it easier to do business in terms of taxes and moving art in and out of the country, they are primed to become an important city for art," Glimcher said. His comments reflect the broader industry sentiment that Tokyo has significant potential if certain barriers can be addressed.
However, the global art world's expansion has recently shifted focus to other regions. Art Basel and Frieze have announced new fairs in Qatar and Abu Dhabi respectively, with the former attracting major gallery exhibitors. Additionally, Pace itself closed its Hong Kong location earlier this month, and Perrotin also recently shuttered its Hong Kong gallery, raising questions about the sustainability of multiple Asian locations.
Hattori acknowledged the key challenge facing Tokyo's aspirations during her interview with the Japan Times. She questioned whether international galleries have the capacity or appetite to operate simultaneously in Hong Kong, Seoul, and Tokyo. "Would they open three locations in Asia? I think that's also the challenge," she said, highlighting the practical limitations that may constrain Tokyo's growth as an art center despite its apparent momentum and potential.
