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Hotel industry in Japan - statistics & facts

Prior to the advent of the COVID-19 pandemic, the hotel industry in Japan was flourishing. The industry’s performance is tightly coupled with tourism KPIs. Various KPI metrics such as the cumulative number of overnight stays, or the gross domestic tourism expenditure showed that domestic tourism remained stable, while a growing influx of inbound visitors and hence rising cumulative overnight stays were recorded, which positively affected the hotel industry. Japan’s hotel industry landscape is rather consolidated than fragmented, meaning that a few select companies have a large influence on the market. The majority of players in the industry are of domestic origin, and most revenue is generated by mid and upper-midscale hotels, while there is a relative scarcity of luxury hotels. The industry’s main source of revenue constitutes lodging expenses of domestic travelers, followed by the hosting of events such as weddings and banquets. The simplest industry structure differentiates between Western-style hotels, Japanese-style hotels (ryokan), and simple lodging facilities (such as hostels or capsule hotels). A more detailed and precise breakdown distinguishes between business hotels, city hotels, resort hotels, ryokan, and simple lodging facilities.

Employment

In terms of workforce demographics, figures relating to employment in the hospitality industry show that the larger part of employees are women. This is common in the service industry in Japan. The industry’s largest employee age group are people aged 65 and older, reflecting Japan’s contemporary demographic situation in the workforce. Employees in the hospitality industry face a relatively harsh work environment. Compared to average overall industry-wide figures, employees in the hospitality industry work longer regular hours and earn significantly less money. Reflecting employment characteristics in Japan, men have been working slightly longer at the workplace than women and also have longer (uninterrupted) employment histories in the industry. Women receive significantly less pay at the end of the month, as well as year-end premiums, despite working only slightly less than men.

Hospitality industry under COVID-19

The hotel industry was among the hardest-hit industries in the COVID-19 pandemic, as domestic tourism was (for the most part) discouraged and inbound tourism was entirely sidelined by the Japanese government. Average annual occupancy rates for 2020 plummeted, especially for facilities focused on providing leisure experiences. Business hotels proved to be the most resilient type of lodging facility. In an attempt to support businesses in the industry, as well as touristic areas that rely on tourism revenue, the government implemented a tourism reinvigoration scheme called “Go to Travel”. Under it, private travelers received state subsidies worth half of their accommodation and travel expenses. The program, which started in the mid-summer of 2020, had success in promoting domestic travel but was suspended due to resurging COVID-19 cases and a new state of emergency declaration in the Greater Tokyo Area in January 2021. The hospitality industry continues to be in a difficult situation, as the COVID-19 pandemic is not yet under control.

Key figures

The most important key figures provide you with a compact summary of the topic of "Hotel industry in Japan" and take you straight to the corresponding statistics.

Facilities

Foreigners' tourism and accommodation expenditure

Employment of women

Interesting statistics

In the following 7 chapters, you will quickly find the {amountStatistics} most important statistics relating to "Hotel industry in Japan".

Hotel industry in Japan

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Hotel industry in Japan - statistics & facts

Prior to the advent of the COVID-19 pandemic, the hotel industry in Japan was flourishing. The industry’s performance is tightly coupled with tourism KPIs. Various KPI metrics such as the cumulative number of overnight stays, or the gross domestic tourism expenditure showed that domestic tourism remained stable, while a growing influx of inbound visitors and hence rising cumulative overnight stays were recorded, which positively affected the hotel industry. Japan’s hotel industry landscape is rather consolidated than fragmented, meaning that a few select companies have a large influence on the market. The majority of players in the industry are of domestic origin, and most revenue is generated by mid and upper-midscale hotels, while there is a relative scarcity of luxury hotels. The industry’s main source of revenue constitutes lodging expenses of domestic travelers, followed by the hosting of events such as weddings and banquets. The simplest industry structure differentiates between Western-style hotels, Japanese-style hotels (ryokan), and simple lodging facilities (such as hostels or capsule hotels). A more detailed and precise breakdown distinguishes between business hotels, city hotels, resort hotels, ryokan, and simple lodging facilities.

Employment

In terms of workforce demographics, figures relating to employment in the hospitality industry show that the larger part of employees are women. This is common in the service industry in Japan. The industry’s largest employee age group are people aged 65 and older, reflecting Japan’s contemporary demographic situation in the workforce. Employees in the hospitality industry face a relatively harsh work environment. Compared to average overall industry-wide figures, employees in the hospitality industry work longer regular hours and earn significantly less money. Reflecting employment characteristics in Japan, men have been working slightly longer at the workplace than women and also have longer (uninterrupted) employment histories in the industry. Women receive significantly less pay at the end of the month, as well as year-end premiums, despite working only slightly less than men.

Hospitality industry under COVID-19

The hotel industry was among the hardest-hit industries in the COVID-19 pandemic, as domestic tourism was (for the most part) discouraged and inbound tourism was entirely sidelined by the Japanese government. Average annual occupancy rates for 2020 plummeted, especially for facilities focused on providing leisure experiences. Business hotels proved to be the most resilient type of lodging facility. In an attempt to support businesses in the industry, as well as touristic areas that rely on tourism revenue, the government implemented a tourism reinvigoration scheme called “Go to Travel”. Under it, private travelers received state subsidies worth half of their accommodation and travel expenses. The program, which started in the mid-summer of 2020, had success in promoting domestic travel but was suspended due to resurging COVID-19 cases and a new state of emergency declaration in the Greater Tokyo Area in January 2021. The hospitality industry continues to be in a difficult situation, as the COVID-19 pandemic is not yet under control.

Interesting statistics

In the following 7 chapters, you will quickly find the {amountStatistics} most important statistics relating to "Hotel industry in Japan".

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