Possibilities for sustainable operation and maintenance in the Rokko Mountain Cable Railway

This study examines the institutional design needed to sustain tourism-related transport infrastructure, focusing on the Rokko Cable Railway in Kobe, Japan, as a case study. These cable railways are a vital means of local transportation and a popular tourist attraction. However, evaluating such infrastructure solely by operational profitability risks overlooks its broader public value. Drawing on interviews with operators and stakeholders, the research emphasizes the need for policy frameworks that recognize both functions. The analysis clarified the opportunities and limitations of separating the infrastructure ownership and operation of the Cable Railway. While it enables large-scale investment, it also raises management challenges. Furthermore, the study highlights the importance of integrated area management under a coordinated framework, such as a destination management organization (DMO), which links transportation with surrounding tourism facilities. The findings offer insights into how transport companies can contribute to sustainable destination management through appropriate institutional arrangements.