Society

Japan's hotel room crunch might be a glut

Aug 06 (Nikkei) - Japan is fretting about running out of hotel rooms as foreign tourist numbers surge and as the capital prepares to host the 2020 Olympics.

But do entire countries really light up the "sorry, no vacancy" sign?

A recent survey by a Tokyo-based real estate service company says Japan has nothing to worry about. It shows that by 2020 or so eight major cities will experience a combined increase of about 60,000 hotel rooms, 26% more than the current level.

This should be plenty to prevent any Olympic shortfall.

In fact, all the new rooms could make for a supply glut.

According to the survey, Tokyo is expected to get another 25,000 hotel rooms by 2020 or shortly thereafter, a 25.6% increase. The number of hotel rooms in Osaka is expected to grow by 18,000 by then, up 34.9%.

Kyoto is forecast to add 8,000 rooms, up 36.1%, according to the survey.

Hotel rooms in the ancient capital, a major tourist draw, are currently in short supply.

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