The Teikoku Data Bank (TDB)’ survey finds that total revenue of hotels and ryokans in Japan in FY2023 ending March 31 2024 is expected to reach 4.9 trillion yen, almost the same revenue as FY2019, mainly because of a rapid increase in inbound travelers and a rise in prices. However, the final result does not reach record-high 5 trillion yen because slow recovery of graduation trips by students and damages on hotels and ryokans in Hokuriku area by the Noto Peninsula Earthquake on January 1 gave a negative impact on the market.
52.% of targeted 931 hotels and ryokans answered that they are right on track to increase revenue. While the ratio was down from 60.8% in April 2024, the ratio of ‘unchanged from the last year’ was up to 44.5%.
There are many hotels and ryokans that succeeded in raising room prices in accordance with higher demands, and many budget-typed hotels have forecasted a 20% or more increase in annual revenue.
The prefecture having the highest ratio of ‘right on track to increase revenue’ is Hiroshima with 84%, and 80% or more in Wakayama and Okinawa also expect to increase revenue.
The ratio of ‘a decrease in revenue’ is just 2.9%, almost the same ratio as 2.6% a year ago, but dramatically reducing from 75.7% in April 2021.
TDB has forecasted that total revenue in FY2024 is expected to reach record-high 5 trillion yen because inbound travelers continue increasing boosted by depreciation of the yen.
On the other hand, TDB pointed out that labour shortage will be one of the biggest challenges to increase revenue through FY2024.
