Japan's hospitality and tourism industry is recovering, but there are challenges

May 11 (World Economic Forum) - The Japanese hospitality and tourism industry is beginning to recover in earnest after being badly hit by COVID-19.

In October 2022, Japan lifted the ceiling on the number of foreign tourists entering the country as well as the ban on the entry of individual foreign travellers, thereby significantly easing its pandemic border control measures. Furthermore, as of March this year, the rule to wear masks, both indoors and outdoors, is now left to individual discretion.

This was a tailwind, and the number of visitors to Japan in the same month quickly recovered to 1,827,500 – a figure is equivalent to 66% of the pre-pandemic March 2019 tally and 27.5 times higher than in March 2022.

However, while Japan's economy is being revitalized in earnest by inbound consumption – boosted in part by the record low yen, which makes Japan an attractive destination for foreign tourists – the country is facing a noticeable challenge as its readiness to receive tourists is not keeping pace with the speed of the recovery in visitor numbers.

Many in the hospitality and restaurant sectors have been forced to reduce their workforce and curtail new hiring due to closures, shorter hours and poor performance caused by the spread of COVID-19, and many employees have moved on to other jobs. The fact it is not easy to bring back staff once they have left the industry is the main reason for the serious labour shortage. ...continue reading

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