Economic Short Comment （10 Jul 2024）
The ratio of foreign visitors in hotels in Kyoto and Tokyo exceeds 50%～ Unsustainable level, be cautious changes in market conditions ～～4● Increase in Hotel Occupancy Rate
The hotel occupancy rate is steadily recovering. The trend is on the rise nationwide, in Tokyo, and in Osaka, andit can be said that it has returned to the level before the pandemic (Figure 1). Despite the severe labor shortage in
the industry, there are still many hotels and inns that find it difficult 【Figure 1】
to operate at full capacity, but overall, the occupancy rate continues torise. In addition, the accommodation fee continues to rise, and thecurrent level exceeds 1.3 times that before the pandemic. As a resu lt,
sales are significantly higher than before the pandemic. With thesevarious tailwinds, the hotel industry is now considered one of the few
thriving industries, along with department stores and others.

hotel room occupancy rate

（％）

9080
7060
50
4030
20
100

nationwide
osaka
tokyo
1 5 9 1 5 9 1 5 9 1 5 9 1 5 9 1● Polarization of Inbound and Domestic Customers
However, the seemingly thriving hotel industry cannot be simply

192021

222324（source）JTA「Travel Statistics Surbey」

described as such. This is because the polar ization of inbound anddomestic customers is progressing. Currently, while the increase in
inbound continues, the fatigue of domestic customers is beginning tostand out. Figure 2 shows the transition compared to before the【Figure 2】（％）
160

domestic guests
visitors to Japan

140
120

pandemic for domestic and inbound customers, and there is a clear

100

difference in brightness and darkness. Factors contributing to the80slowdown of domestic customers include the rising trend of

total number of hotel guests（nationwide, compared to 2019）60

40

accommodation fees and the expansion of saving consciousness due

20

to the decrease in real wages. Now, the increase in hotel demand is0

supported by inbound, and as evidence, the ratio of inbound to hotel

212223（source）JTA「Travel Statistics Surbey」

1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3
24

guests is significantly increasing.
● Comparison of the Situation by Area and Before the Pandemic【Figure 3】

Regarding the ratio of inbound to hotel guests, as of the most recent

60April 2024, Kyoto has the highest ratio in the country at 55.9% (Figure503). Compared to April 2019 before the pandemic, it is an increase of40
20

these two prefectures have more than half of their hotel guests being

10

to before the pandemic is in Ishikawa, as well as in Kyushu forces
such as Fukuoka and Kumamoto. For Kumamoto, the impact of the0-10

narakanagawa
chiba
aiti
kagawakumamoto
wakayama
okinawa
hiroshimaishikawayamanashi
fukuoka
gihu
osaka
tokyo
kyoto

making up nearly half of the ratio. The noticeable increase comparedgap between the two
Apr-24Apr-1930

nearly 9 points. Like Kyoto, Tokyo also has a level exceeding 50%, andinbound. Following them, Osaka is also at 40.7%, with inboundratio of foreigners among hotel guests（April 2024、April 2019）（％）（source）JTA「Travel Statistics Surbey」※ The purpose of this document is to provide information and is not intended to solicit product transactions. Additionally, thisdocument has been created based on data deemed reliable by our company, but it does not guarantee accuracy or completeness. Thecontents mentioned in this document are as of the time of writing and may be subject to change without notice in the future.

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construction of Taiwan TSMC's semiconductor factory is considered significant.
● About Future Prospects
Even looking at the national average, it has recently risen to 27.9%, an increase of about 6 points compared tobefore the pandemic. The recent April is the cherry blossom viewing season, and it is a time when inboundincreases, so it is undeniable that the foreigner ratio tends to increase.
However, looking at the movement in Kyoto, for example, it is not justthat inbound is increasing, but the decrease in domestic customers isbecoming prominent (Figure 4). In such a situation, if inbound were toslow down, it would be unavoidable that the overall hotel demand【Figure 4】 total number of hotel guests（kyoto, compared to 2019）（％）
160
domestic guests
140
visitors to Japan
120

10080

would cool down at once. In the future, if changes in the external

60

environment such as rapid yen appreciation occur, attention will be

40

needed to the possibility that the supply and demand of the hotel
market may deteriorate more than expected along with the decrease ininbound.

2001 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3212223（source）JTA「Travel Statistics Surbey」

24（Reference）
Resona Research Institute Co.,LtdHideyuki Araki, Chief Economist
hd-araki@rri.co.jp※ The purpose of this document is to provide information and is not intended to solicit product transactions. Additionally, thisdocument has been created based on data deemed reliable by our company, but it does not guarantee accuracy or completeness. The
contents mentioned in this document are as of the time of writing and may be subject to change without notice in the future.

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