Japanese hotel room rates are rising again, driven by an increase in foreign tourists. Tokyo led the nationwide climb with its average daily rate jumping nearly 13 percent, and the Japanese government's move to raise the departure tax and some tourism-related costs is expected to add further burden on travelers.
The Nihon Keizai Shimbun reported Tuesday, citing data from hotel information provider STR, that the average daily rate (ADR) of Japanese hotels in May stood at 21,795 yen (about 210,000 won), up 6.5 percent from the same month last year.
The average hotel occupancy rate also rose 0.9 percentage point from a year earlier to 80 percent, maintaining a high level.
By region, Tokyo's increase was pronounced. Tokyo's average daily rate was 33,168 yen (about 320,000 won), up 12.8 percent from the same month a year earlier, leading the rise in the national average.
Osaka, by contrast, showed a different picture. Its average daily rate was 20,372 yen (about 200,000 won), down 13.9 percent. Analysts attribute the drop to a base effect from lodging demand that surged ahead of last year's Expo, as well as lower room rates centered on budget hotels after Chinese tourists declined following the Chinese government's call to refrain from traveling.
Still, overall demand for visits to Japan remained solid despite the decline in Chinese tourists. According to the Japan National Tourism Organization (JNTO), the number of May visitors to Japan from 19 major countries and regions, including South Korea, the United States, the United Kingdom and Australia, hit a record high for the month of May, largely offsetting the drop in demand from Chinese tourists.
Shiori Sakurai, STR's Japan lead, projected, "The upward trend in room rates is expected to continue, but as the overheating cools, the pace of growth will gradually moderate."
Departure Tax Tripled, Visa Fees Up to 5 Times Higher, Lodging Tax Increase Pursued
The Japanese government is also raising tourism-related burdens one after another to respond to the increase in tourists.
According to the Japanese government, the departure tax, known as the "international tourist departure tax," was raised from 1,000 yen (about 9,500 won) per person to 3,000 yen (about 28,000 won) starting Tuesday. The tax is paid by both Japanese and foreigners when departing Japan and is charged together with the purchase of airline or ship tickets.
The government expects the increase to raise annual tax revenue from about 50 billion yen (about 477 billion won) to around 120 billion yen (about 1.14 trillion won). The secured funds will be used for measures against overtourism and improving the environment of tourist sites.
From the same day, visa application fees for foreigners visiting Japan also rose sharply. The single-entry visa fee was raised from 3,000 yen to 15,000 yen (about 140,000 won), and the multiple-entry visa fee from 6,000 yen (about 57,000 won) to 30,000 yen (about 280,000 won).
However, South Korea, Taiwan and the United States have visa exemption agreements with Japan, so the direct impact of the fee increase is limited. This has led to interpretations that the measure targets countries subject to visa issuance, such as China.
Tokyo has also moved to overhaul its lodging tax. The metropolitan government decided to change the lodging tax, currently operated on a flat-rate system, to a percentage-based system charging 3 percent of the lodging fee. Japan's Ministry of Internal Affairs and Communications has approved it, and it is scheduled to take effect in April next year. Under the structure, the higher the lodging fee, the greater the tax burden.
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