For those travellers looking to capitalise on Japan's weakened yen,
it may not be as cheap as they may think anymore. While they may save on
food costs and other expenses, hotel room rates have soared, according
to the latest industry data.
The average daily room rate in February stood at 18,915 yen (US$124),
up 25.5% from a year earlier. This spike, lasting for 26 consecutive
months through February, has been driven by a flood of inbound tourists
seeking to take advantage of the depreciated yen.
In February, the number of international visitors to Japan surged by
89% compared to the previous year, reaching 2.78 million people, as
reported by the Japan National Tourism Organization (JNTO). This figure
also exceeded the traffic seen in the same month in 2019 by 7.1%.
Longer stays by visitors from the US, Europe, Australia, and other
regions have contributed to the increase. Despite slow recovery in
traffic from China, demand remains robust from other areas.
Luxury hotels and high-end options have particularly benefited from
this trend, with strong demand from inbound tourists. As a result,
average daily room rates are expected to continue climbing, with hotels
implementing dynamic pricing strategies to optimise earnings.
Challenges such as labour shortages and rising construction costs
pose constraints on further expansion in hotel supply, potentially
exacerbating the rise in room rates.