Japan's Tourism Boom Is Pushing Rates Higher
Skift Take
Japan’s booming tourism, driven by a weak yen and rising demand, has pushed hotel costs so high that even business travelers are priced out, prompting shifts to alternatives like Airbnb and further tax hikes in places like Kyoto.
Agence France-Presse published an article on how Japan’s tourism boom has created such high room rates that business travelers, of all people, cannot afford it anymore. The weak yen is attracting more visitors to Japan with a new record expected when the final 2024 totals are in, somewhere around 36.8 million arrivals. Even capsule hotels are seeing room rates rise, starting at US$30 but increasing. That is still lower than a regular standard hotel room in Tokyo, which is up to US$130 on average in November. The pre-pandemic peak was US$80 a night. The increase in visitation is occurring as Japan struggles with chronic labor shortages and an increase in hotel supply costs. The beneficiary of all this may be Airbnb and their renters as many businesses are seeking out that platform as an alternative. As we mentioned earlier this week, Kyoto is greatly increasing their Accommodation Tax. It will be up to 10 times higher for the top end hotels. Meanwhile, Japan’s goal is to attract
