4) Hotel
Foreign visitor arrivals which have recently stimulated hotel demand still increased moderately (Chart-16). However, the total number of stays in accommodation facilities by foreign visitors has often posted negative y-o-y growth since October 2016 (Chart-17). One of the reasons may be "
Minpaku," private residential units leased for short stays operated through Airbnb and others.
Hotel occupancy rates declined y-o-y in many cities, Yokohama and Nagoya in particular, in March (Chart-18). On the contrary, hotel occupancy rates in Fukuoka, Kyoto and Hiroshima increased y-o-y in March. Fukuoka often faces hotel shortages when live concerts are held, while Kyoto and Hiroshima have high reputations as global, sightseeing cities.
In Tokyo and Osaka, it appears expensive room rates in the city center have pushed tourists to choose to stay in the suburbs. However, hotel occupancy rates have been above the long-term average while hotel investment and development are also active. The number and space for construction starts of accommodation facilities increased by 40% and 86% y-o-y respectively in 2016 (Chart-19). Considering hotel demand has been diverted to
Minpaku and the suburbs, increasing hotel developments can bring low occupancy rates in certain areas and categories. In hotel development and operation, targeting customers in appropriate categories is becoming increasingly important in order to secure demand.