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Although Japan has reopened to the world, its hotels still aren't up to par.

NEWS - 11-10-2022


Japan's hotel business confronts a personnel shortfall as it reopens to global tourism.

After more than two years of strict border restrictions to fight COVID-19, Japan will resume visa-free travel to dozens of countries, including the U.S. According to Reuters, the government hopes to boost its economy via tourism. Japan's tourism sector confronts a problem U.S. hotel owners know well.

The labor pool isn't big enough to completely staff Japanese hotels as they accept more international visitors. According to Reuters, 73% of Japanese hotels reported a staff shortage in August. Only 27% of hotels reported a staffing deficit a year ago. Part of it may be because hotels can handle less tourist now that the borders are open.

American hoteliers may recognize the cause of Japan's workforce problems. During the epidemic, hotel employees sought better pay and conditions in other sectors. It will be difficult to win them back. In the early days of the epidemic, hotel firms and individual property owners lay off personnel because to unclear travel demand. Many firms that laid off workers were surprised when demand soared once travel restrictions were eased. Suddenly, laid-off employees were sorely required, but who wants to work for a quick-firing industry?

David Kong, former CEO of BWH Hotel Group, remarked at a New York University hospitality conference last year, "The baggage we carry from the epidemic is hard to erase." People feel abandoned in a crisis because there's no safety net. The hotel industry's poor pay have also driven away employees. Hotel owners have to pay extra to retain personnel.

If the government considers tourism as a significant business, financial assistance or subsidies are undoubtedly required, a tourist adviser told Reuters. It's unclear what type of financial life raft Japan's government would send the tourism industry, but it did improve working conditions.

In the event of a coronavirus epidemic, Japan's Cabinet Secretariat authorized a revision to hotel regulations that allows employees to prohibit access to customers who don't wear a mask.

In the U.S., which has been open for foreign travel since October, hotel owners say it's hard to get personnel. 36% of American Hotel & Lodging Association survey respondents reported serious staffing shortages. Japan's hotel labor crisis isn't an easy challenge to solve.