Occupancy rate of accommodations in Japan 2014-2023

In the past decade prior to the COVID-19 pandemic, Japan’s domestic tourism was stable, while inbound tourism was on the rise, reaching almost 32 million visitors in 2019. Increasing inbound tourist numbers translated into rising occupancy rates of lodging facilities. With the advent of the pandemic, the occupancy rates of accommodations plummeted between 2020 and 2022, but recovered in 2023, reaching 57.4 percent.

Lodging facility types

Five lodging facility types exist, which include business hotels, city hotels, resort hotels, Japanese-style hotels (ryokan), and simple lodging facilities with shared bedrooms. The majority of business hotels and city hotels have Western-style furniture, while ryokan feature traditional Japanese housing elements such as tatami mats. The occupancy rates among accommodation types are typically highest at business and city hotels.

Inbound tourism

Japan is a treasure chest for tourists. From bustling cities to remote scenic spots, traditional culture to state-of-the-art technology, there is something for every visitor. In cities, tourists often spend time in business hotels or city hotels. Lodging in remote locations typically features resort hotels or ryokan. Expenses for lodging occupy the highest share of expenditure in inbound tourists’ travel budget.