As in most other countries, the COVID-19 pandemic negatively impacted travel and tourism in Japan. The overall number of overnight stays declined, with guest nights by international visitors almost disappearing during 2021 and staying low in 2022 compared to pre-pandemic results. The number of domestic travel overnight stays also declined considerably but was on a recovery course in 2022.
Travelers were willing to pay the price for lodging, considering that accommodation expenditure was the highest expense item for inbound travelers and the second highest expense item for domestic travelers next to transportation costs. In many cases, accommodations focused on leisure and wellness are resort hotels or ryokan, while business and city hotels are prevalent in cities.
Lodging facilities and consumer behavior
Accommodations in Japan belong to one of the following five categories: Business hotels, city hotels, resort hotels, Japanese-style hotels (ryokan), and simple lodging facilities that provide shared bedrooms. Before the pandemic, the average occupancy rate of accommodations was rising and had surpassed 60 percent but experienced a setback due to travel restrictions and counterindications issued by the government meant to stem the spread of COVID-19. Among accommodation types, business and city hotels had the highest occupancy rates.Travelers were willing to pay the price for lodging, considering that accommodation expenditure was the highest expense item for inbound travelers and the second highest expense item for domestic travelers next to transportation costs. In many cases, accommodations focused on leisure and wellness are resort hotels or ryokan, while business and city hotels are prevalent in cities.
