TOKYO-the state-Backed Cool Japan Fund will invest $10 million in Taiwanese travel booking platform KKDay, forming a partnership to develop off-grid activities to attract repeat tourists, the Nikkei found.

Unlike other online travel planners, which are usually limited to airline tickets and hotel bookings, KKDay also connects users to local events and cultural experiences. Start-up maps out last-mile transportation options – such as taxi and ride hail options-so travelers can arrive at their destinations without problems.

Kkday, popular with Hongkongers as well as Taiwanese, sells holiday packages to 92 destination countries. However, the company reports that Japan attracts about 40% of orders.

Cool Japan is a public-private Foundation established in 2013 that seeks to promote Japanese cultural exports. The Fund’s infusion will go towards expanding kkday’s local offices in Japan, as well as developing experiences that connect holidaymakers to Japan’s culture and natural beauty. Bike tours to tourist spots are also in the works. Cool Japan will collaborate using its local government network to assist projects.

By creating tours that attract visitors, Japan hopes to increase the spending of tourists and visitors to extend their stay. H. I. S., Japan’s leading travel Agency, also owns a stake in the Taiwanese startup, along with other sponsors.

KKDay specializes in the travel event space, which is distinct from air travel and accommodation-areas dominated by well-known companies such as Expedia. Although tourism is an emerging market in terms of digital penetration, it attracts an increasing number of competitors.

Hong Kong-based rival Klook, a leader in the activity booking market, started operations in Japan earlier this year. CTrip.com International, the largest travel Booker in China, operates Trip.com, Silicon valley outfit with a presence in Japan. All are seeking to increase their share of tourists to Japan, the number of which has roughly tripled in five years.

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