The Teikoku Data Bank survey on hotel and ryokan business in Japan in FY2016 finds that revenue of 7,915 hotels and ryokans on its database totaled 4,901.2 billion JPY, 2.1% more revenue than FY2015. The total revenue has increased year on year since FY2012 and reached record-high in FY2016, boosted by higher demands of both domestic and inbound travelers.
The revenue growth, however, was polarized by business scale. Out of all hotels and ryokans with revenue growths in FY2016, 62.1% was those with annual sales of 10 billion JPY or more, followed by 58.1% with annual sales of 5 billion JPY to 10 billion JPY. On reverse, the ratio of those with 100 million JPY or less was just 14.6%.
By region, there were more hotels and ryokans with revenue growths than those with revenue reductions in South Kanto including Tokyo, Kinki including Osaka, Hokkaido and Shikoku. In Kinki, the ratio of those with revenue growths accounted for 33.1% of the total mainly because of growing inbound travel demand.
Many hotels and ryokans with revenue reductions were found in Tohoku (28.4%) and Hokuriku (32.3%), where a negative reaction from open of the Hokuriku Shinkansen in FY2015 was found.
The results varied with business histories. The ratio of 10 years old or younger hotels and ryokans with revenue growths was 38.2%, which was the highest. The ratio of 100 years old or older hotels and ryokans with revenue reductions was 27.5%.
