Hotel rooms filling up again in Japan, but recovery stunted by labor shortages

Jun 12, 2023 | News On Japan

Jun 12, 2023 (The Japan News) - Occupancy rates at hotels and other accommodations have been making a steady recovery, reaching 55.6% in April according to preliminary Tourism Agency statistics, which marks more than a four-fold increase from the lowest point of the coronavirus pandemic.

Labor shortages, however, continue to plague the industry, keeping from getting the recovery onto solid footing.

April marked the third consecutive month that the occupancy rate has exceeded 50%. In fact, since the government’s nationwide travel discount program to stimulate demand began in October, the rate has steadily remained above 50% with the exception of January, when many people return home instead of staying at hotels and inns.

The rate seems on track to returning to the pre-pandemic 60% range.

During the pandemic, the occupancy rate fell to 13.2% in May 2020, when a national state of emergency was declared. In the period from 2020 to 2021, it hovered in the 20%-40% range. In addition to restrictions on movement, the disappearance of foreign visitors to Japan due to the tightened border control measures had a major impact.

With the relaxation of border control measures and other factors, the occupancy rate remained high at 57% in March and 55% in April. The rapid increase in foreign visitors has bolstered underlying demand. ...continue reading

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