Infographic: Leading Challenges for the Japanese Accommodation Industry (2024)

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How is the hospitality industry in Japan? ›

Japan Hospitality Market Analysis

In Japan, hotel performance remained weak for most of 2021. However, slightly recovering occupancy rates from the previous half-year are almost at the levels seen in 2H/2020, even without the help of the 'Go To' Travel campaign. Moreover, hotel revenues have also improved slightly.

Japan's Hotels market is projected to experience a significant growth in revenue in the coming years. By 2024, the projected revenue is estimated to reach US$25.11bn. Moreover, it is expected to show an annual growth rate of 0.10%, resulting in a projected market volume of US$25.21bn by 2028.

Traditional Japanese hotels are called ryokans – an inn or lodge that offers the opportunity to experience traditional Japanese hospitality. Typically they include tatami mat floors, sliding doors, communal baths, local cuisine and futon bedding.

The Japan Hospitality Market Size was valued at USD 22.5 Billion in 2022. The Market Size is growing at a CAGR of 1.6 % from 2022 to 2032. The Japan Hospitality Market Size is expected to reach USD 26.45 Billion by 2032.

Outlays by visitors came to ¥1.7 trillion in the final quarter of 2023, a 21% increase from the third quarter, a positive result for the economy as domestic demand wilts due to high prices. “GDP will swing back to a positive reading in the fourth quarter with help from strong inbound tourism.

Japan is home to solidly established industries in pharmaceuticals, medical equipment, preventative healthcare, regenerative medicine, and nursing care services. But these sectors are expected to grow alongside Japan's rapidly aging population.

In Japan, there is a deep-rooted culture, which comes from sado (tea ceremony), called omotenashi, meaning to wholeheartedly look after guests. The term is a microcosm of the country itself, representing the Japanese mindset of hospitality centring around care rather than expectation.

Service in Japan centers around care rather than expectations. Any task that makes a guest feel better, no matter how menial, is important. Anticipating a customer's unique needs in a way that feels natural is considered the height of omotenashi.

Ryokan, traditional Japanese inns, offer more than just a place to stay. Japan's famed omotenashi (hospitality) is at the cornerstone of this accommodation experience. Potentially the oldest form of hotel in the world, Japan's ryokan are said to date back to the 8th century.

What is Japanese hospitality etiquette? ›

The protocol is to take off your shoes at the entrance area inside the doorway and slip on the indoor-use slippers provided and then neatly place your shoes either in the shoebox provided or to the side out of the way. When inside, it's customary to remove your slippers when on the tatami mats or using the bathroom.

Thinking of Japan you probably imagine or recall its people as thoughtful, helpful, friendly, kind,… What we could call Japanese hospitality is actually much more than that, it's a true and unique way of life. Below we tried our best to explain what Japanese call Omotenashi.

There are a number of reasons why hotels in Japan are so expensive. One reason is that land is scarce in Japan, and this drives up the cost of real estate. Another reason is that labor costs are high. Finally, hotels in Japan are often very luxurious.

International visitor spend in Japan is forecast to surge by 553.4% this year to reach USD 16.8 billion (JPY 2.2 trillion), still 57.6% below the 2019 peak. Last year the sector's GDP contribution grew by 50.5% to reach more than USD 257 billion (JPY 33.9 trillion), representing 6.2% of the economy.

1. United States: The Land of Endless Possibilities. The United States remains a top destination for hospitality professionals, offering a dynamic job market and a variety of experiences.

The practice of “omotenashi”, which translates to selfless hospitality, is intrinsic to Japanese culture. From the courteous bows of greeting to the meticulous care taken in every service, travelers in Japan can anticipate a level of hospitality that is both genuine and endearing.