Why Japan's Travel Industry Can't Smile Despite the Surge in Foreign Tourists

Number of Accommodation Workers Decreased from 660,000 in 2019 to 510,000 by August This Year
"Even with a 30% Hourly Wage Increase"... Cases of Inability to Fully Operate Rooms Due to Labor Shortage

On the 11th of last month, when visa-free travel for Koreans to Japan, which had been suspended due to the spread of COVID-19, resumed, Asiana Airlines passengers were waiting to check in for the Gimpo-Haneda flight at Gimpo International Airport. Photo by Yonhap News

[Asia Economy Reporter Kim Hyunjung] Although the number of foreign tourists visiting Japan has surged due to various favorable factors such as visa-free entry and the easing of COVID-19 quarantine measures, the Japanese travel industry, including airlines and accommodations, is struggling to welcome guests due to labor shortages.

According to a report by Nihon Keizai Shimbun (Nikkei) on the 5th, the number of workers in the Japanese accommodation industry dropped by more than 20%, from 660,000 in August 2019 to 510,000 this August. This phenomenon occurred because many accommodation workers switched to other industries during the COVID-19 pandemic. Last month, Nikkei reported an interview with a representative from the accommodation staffing service company "Dive," who said, "Even entering September after the summer season, labor shortages at accommodation facilities continue." The number of job requests from accommodation facilities across Japan to Dive has increased more than fourfold compared to last year, but finding staff remains difficult. The Dive representative stated, "Talents who moved to other industries due to COVID-19 do not easily return," adding, "Many accommodation facilities are feeling anxious as foreign tourists are expected to increase."

These concerns quickly became reality. A hotel official in Nago City, Okinawa Prefecture, a famous Japanese resort area, told Nikkei, "Due to a shortage of staff, we cannot fully operate all 300 rooms and are barely managing about 80% operation." Another hotel in Nikko City, Tochigi Prefecture, expressed difficulties, saying, "Even after raising hourly wages by 30%, it is hard to find people."

Labor shortages are not limited to the accommodation industry. All Nippon Airways (ANA) has recently increased flight routes and frequencies, resulting in a shortage of ground staff at Tokyo Haneda and Narita airports. Consequently, flight attendants and new hires are being mobilized to assist with passenger guidance and baggage handling. According to labor force survey statistics from Japan's Ministry of Internal Affairs and Communications, the number of workers in the tourism industry was 4.56 million in August 2019 but decreased by 500,000 to 4.06 million this August. In contrast, the number of foreign visitors to Japan in September reached about 200,000, more than ten times the number during the same period last year. Although this figure is only about one-tenth of the approximately 2.27 million visitors in September 2019, the number of foreign tourists visiting Japan is expected to continue increasing due to the Japanese government's visa exemption measures announced on the 11th of last month and the weak yen phenomenon.

The transportation sector, including rental cars and charter buses, is also facing difficulties. Due to semiconductor supply shortages delaying new car production, the rental car industry is struggling to secure vehicles to rent to customers, and it is also challenging to secure charter buses mainly used by tourists.

This content was produced with the assistance of AI translation services.