Hotel prices have been rising across the nation as tourists flock back to Japan following loosened border restrictions.
In the first quarter of 2023, hotel prices increased by around 15% compared with the pre-pandemic 2019 fiscal year, according to a survey.
According to STR 2023, a U.S. research firm specializing in the hospitality industry, the average price difference for hotels in Japan between the first quarter of 2019 and the first quarter of 2023 is ¥2,107.
The average rate paid for rooms is up approximately 15% in the first quarter of 2023 compared to fiscal 2019.
Shiori Sakurai, STR's business development manager, attributed the price increase to nationwide travel support campaigns, high-spending visitors from the U.S., the U.K., Australia and France, the weak yen, and cost pressure due to high prices, especially high energy prices.
APA Group, a major domestic hotel chain, has said that as of March 31, room rates for fiscal 2023 have increased by 4% compared to fiscal 2019.
“We are very happy to see the gradual return of foreign visitors to Japan, as we have been striving to improve customer satisfaction by introducing services that are popular among foreign visitors,” said Yumi Iwasaki, an APA Group spokesperson. “We hope that more and more people will enjoy sightseeing in Japan.”
On Oct. 7 last year, the government eased its travel restrictions, allowing visa-free, independent tourism with no daily cap, marking a major policy shift after nearly 2½ years of strict COVID-19 restrictions.
According to the Japan National Tourism Organization, the estimated number of foreign visitors entering Japan as of March was around 1,817,500, equivalent to 65.8% of the level seen in March 2019, before the coronavirus outbreak. It was the highest figure since the travel restrictions were eased for individual trips and those that weren't pre-arranged.
“When I came to Tokyo during my graduation two years ago, it was ¥7,000 per night. When I came last time (February), it was ¥15,000 per night,” said Daiki Kono, who also visited Tokyo from Shikoku earlier this month before the Golden Week period to avoid the crowds.
Because of the drastic spike in prices during his February trip, Kono said he used a capsule hotel this month, which cost ¥5,000 per night.
“If only it was cheaper, I’d come to Tokyo more often," he said.
Hotels began increasing their rates for bookings from next Wednesday as demand is surging for the Golden Week holiday period.
Santiago Guesthouse Naha, a hostel in Okinawa, is taking bookings for ¥4,000 per night on Airbnb during the holiday period, but receptionist Sho Nishizawa said the usual rate is around ¥2,000.
As for lodgings that use a dynamic pricing system, such as the APA Hotel chain, room rates fluctuate on a daily basis depending on supply and demand, meaning prices will likely be high during the holiday period.
Due to Japan lifting its travel restrictions later than other countries, the tourism sector has seen price hikes come later than in other nations.
“In Europe and the United States, unit prices have already exceeded 2019 levels by double digits from 2021,” Sakurai said.
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