Alexandru Arba
Research expert covering Japan
Hotel industry in Japan - statistics & facts
Japan’s lodging industry consists of around 90 thousand accommodation facilities that cater to the demand created by the steady domestic – and increasing inbound tourism. Fueled by the country’s sizable population, domestic tourism accounts for the lion’s share of expenditure in Japan’s tourism industry. In 2023, domestic overnight tourism generated expenditure worth around 17.8 trillion Japanese yen, a considerable part of which travelers spent on accommodations.
After a weak performance between 2020 and 2022 that was induced by the COVID-19 pandemic, the tourism industry recovered in 2023. This was underscored by the large number of overnight stays recorded in said year, as well as by the overall tourism expenditure that reached a new decade-high.
Travelers were willing to spend 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 expenses. Often, 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. The average occupancy rate of accommodations was closing in on the 60 percent mark in 2023, as it was on a recovery course from the setback suffered during the COVID-19 pandemic. Among accommodation types, business and city hotels had the highest occupancy rates.Travelers were willing to spend 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 expenses. Often, accommodations focused on leisure and wellness are resort hotels or ryokan, while business and city hotels are prevalent in cities.
