Economic Short Comment （14 Feb 2024）
Half of Tokyo’s hotel guests are foreigners～ Dependence on inbound tourists rising in metropolitan areas ～～4● Recovery of Hotel Occupancy Rates
Demand recovery in hotels and ryokans (traditional Japanese inns) is progressing. Accommodation occupancy
rates are steadily improving and have almost returned to pre-pandemic levels nationwide (see Figure 1). The
driving force behind this recovery is primarily inbound tourism, 【Figure 1】
which continues to grow steadily and contributes to the increase inaccommodation demand.
Consequently, in major metropolitan areas, the proportion of foreign
guests among hotel guests is rising. For instance, in Tokyo, the recent
figure stands at 49%, nearly half of all guests (see Figure 2). While
Tokyo has always been a region with a significant inbound tourist
presence, the percentage was 37% in November 2019 (pre-allosaka

1 5 9 1 5 9 1 5 9 1 5 9 1 5 9pandemic), and it has increased by 12 points in the recent data(November 2023).

The occupancy rate of hotels（％）

9080706050403020
1001920212223（source）JTA「Travel Statistics Surbey」

Although the rise in hotel occupancy rates is positive, the situation
where inbound tourists account for half of the guests is not ideal.

【Figure 2】

the movement of foreign guests in Tokyo（％）

Overreliance on inbound tourism is not sustainable, and cautious

80

consideration is necessary for future trends.

7060
50

● Discrepancy Between Inbound and Domestic Demand40

Not only in Tokyo but also in Osaka and Kyoto, the proportion of30

foreign guests has reached 43%. This level is 5 to 8 points higher than20

pre-pandemic levels (see Figure 3). While the increase is not as

10

pronounced as in Tokyo, exceeding 40% is still significant.
The rise in foreign guest ratios, particularly in major metropolitan
areas, is attributed to the steady recovery of the inbound market.

（ten thousand persons）
500

the proportion offoreign guests
the number of foreignguests(RHS)

200
100
0192021（％）

50

the proportion of foreign guests
osaka

pent-up demand after COVID-19, intermittent increases in hotel

23【Figure 3】

demand has been somewhat declining.

levels (see next page, Figure 4). Factors include the completion of22（source）JTA「Travel Statistics Surbey」

60with some months showing occupancy rates below pre-pandemic

300

0However, it’s not the sole reason. As inbound tourism grows, domestic
The accommodation situation for domestic guests is not favorable,

400

kyoto

4030
20

prices, and the impact of prolonged inflation, which puts pressure on

10

income and may lead to reduced travel demand. As a result, the0utilization of inbound tourism has disproportionately increased,（source）JTA「Travel Statistics Surbey」

192021

2223pushing up the inbound ratio.
※ 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.

1

● Hotel Demand Trends and Economic Assessment
Recognizing these realities regarding hotel demand is essential. The
divergence in trends related to accommodation demand, both【Figure 4】

the total number of domestic guests（compared to 2019）

（％）
140

tokyo

domestically and internationally, also affects economic assessments.

120

While recent increases in hotel occupancy rates may suggest robust

100

service consumption, the lack of growth in domestic demand prevents80

us from making such a straightforward assessment.

60

Domestic demand is already showing signs of stagnation, and40

depending on future price movements, further deterioration is possible.

20

The implementation status of nationwide travel support also plays arole. Going forward, vigilance is necessary regarding the divergence inosaka

1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 1121
22（source）JTA「Travel Statistics Surbey」

23

supply and demand trends both domestically and internationally.
（Reference）
Resona Research Institute Co.,Ltd
Hideyuki 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. Thecontents mentioned in this document are as of the time of writing and may be subject to change without notice in the future.

2