Tourism Hotels recovering, but labour shortage prevails

[thomas]

While Japan's hotel industry seems to be slowly recovering, reporting occupancy rates of up to 55.6%, a four-fold increase from the lowest point of the coronavirus pandemic, labour shortages continue to plague tourism.

During the pandemic, the occupancy rate fell to 13.2% in May 2020, when a national state of emergency was declared. 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.

During the pandemic, many operators were forced to reduce their staff due to the sharp plunge in occupancy rates. Even with the resumption of economic activity, they face difficulties securing the necessary manpower.

In a Japan Hotel Association survey conducted in January, most hotels responded that "the labour shortage is having an effect on their operation," with about 16% of them putting limits on room availability. They are struggling to balance maintaining the quality of their services and higher room occupancy rates.

Hotel Rooms Filling Up Again in Japan, but Recovery Stunted by Labor Shortages

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...

japannews.yomiuri.co.jp