Economic Short Comment （23 May 2024）
The recovery of private lodging varies by region～ While South Kanto takes the lead, Kansai is very sluggish ～～4● Usage of private lodging
Recently, there has been an increasing trend in the utilization of vacation rentals. Looking at the performance ofthe housing accommodation business based on the so-called “New Law for Vacation Rentals”, there has been a
gradual recovery nationwide. If we consider the period from February to March 2019 as 100, the recent utilization
rate hovers around 70 (see Figure 1). Although it will take sometime to return to pre-pandemic levels, the recovery seems to be
progressing steadily.

【Figure 1】

Usage of private lodging（2019.2-3＝100）
120

However, when we examine the situation regionally, the Kanto

100

region (southern part of Greater Tokyo) is surpassing the80

national average, while Kansai (western Japan) lags behind.

60

nationwide
Kanto
Kansai

Specifically, Kansai’s utilization rate remains low at 33, partly
40

due to a significant decrease in recent months.
The primary users of vacation rentals are inbound tourists, and20

they have already surpassed pre-pandemic levels. Interestingly,

01920212223（source）Ministry of Land, Infrastructure, Transportand Tourism

even though inbound tourism is booming in Kansai, therecovery of vacation rentals in the region is notably delayed.
● Delay in Kansai's recovery

2】 Breakdown of foreign visitors
When examining the reasons behind Kansai’s delayed recovery, 【Figure（％）

we find that the limited utilization by inbound tourists plays asignificant role. Specifically, the slow return of Chinese tourists

40

using private lodging

2019.10-11
2023.10-1130

has had a notable impact.
Before the pandemic, among inbound tourists who utilized
vacation rentals, Chinese visitors constituted the largest share,accounting for approximately 30% of the total (see Figure 2). In
the Kansai region, this percentage exceeded 30%. However, thedelayed recovery of Chinese tourists has resulted in overallsluggish utilization of inbound services.

20100
nationwide

Kansainationwide

Kansai

ChinaUSA（source）Ministry of Land, Infrastructure, Transportand Tourism

Additionally, the recent depreciation of the Japanese yen has
made hotel prices more attractive for inbound travelers. Despite the general upward trend in hotel rates postpandemic, exchange rate fluctuations have partially offset this increase.
● Increase in private lodging use by domestic guests
Amidst these circumstances, vacation rentals are currently sustained mainly by domestic tourists. When we
divide users nationwide into domestic and international guests, domestic tourists significantly surpass pre※ 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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pandemic levels (see Figure 3).

【Figure 3】

the number of private lodging andguests nationwide

While domestic usage has increased by approximately 1.5 times
compared to pre-pandemic levels, international guest utilization30

remains at around half of what it was before the pandemic.

25

Consequently, domestic tourists now outnumber international

20visitors in terms of utilization.

15

Several factors contribute to the surge in domestic usage.
Notably, rising hotel prices play a significant role. While inbounddomestic usage
international guest

10

tourists benefit from the weakening yen, domestic travelers do

5

not enjoy the same exchange rate advantage. As a result, there is0

a high likelihood that demand has shifted toward vacation（ten thousand people）

19
20
21
22
23
（source）Ministry of Land, Infrastructure, Transport
and Tourism

rentals. Additionally, the introduction of vacation rental services
over time has contributed to their growing awareness and popularity.
● Transition of the number of registered private lodging properties
Amidst these circumstances, let’s examine the supply situationof vacation rentals. After the downturn during the pandemic, therecovery status varies significantly across different areas (see【Figure 4】（2020.4＝100）
120

Figure 4).

110

If we consider the pre-pandemic peak as 100, the total number of100

registered properties nationwide has recently reached 108,90

surpassing pre-pandemic levels. In contrast, the Kanto region

80(southern part of Greater Tokyo) stands even higher at 117.

70However, the Kansai region (western Japan) lags behind at 85,indicating a substantial delay in recovery.
The scarcity of supply in Kansai can be primarily attributed tothe slow recovery of demand. With demand still below 50% of

Number of registeredprivate lodging properties
nationwide
Kanto
Kansai

60
50
19202122
2324（source）Ministry of Land, Infrastructure, Transportand Tourism

pre-pandemic levels, expectations for increased supply remain low.
Looking ahead to recovery, it largely depends on the revival of demand. The key factor remains the return ofChinese tourists. While Kansai’s current recovery rate stands at 75% of pre-pandemic levels, if it follows the trend
seen in other regions and surpasses pre-pandemic levels, it could boost vacation rental utilization. However, given
the uncertain state of the Chinese economy, the outlook remains unclear for now.
（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. 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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