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Raymond ClementManaging DirectorAsia Pacific+65 6415 [email protected]
Julien NaouriDirectorAsia Pacific+65 6415 [email protected]
Tomotsugu IchikawaDirectorJapan+81 3 6777 [email protected]
Please contact us for further information
Savills Hotels Team
JapanHotel Market
Snapshot July 2020
DOMESTIC TOURISM
Following seven consecutive years of growth, in 2019 Japan welcomed 31.9 million international visitors. 2020 was anticipated to be a stellar year for Japan tourism on the back of booming inbound demand and the Tokyo 2020 Olympic Games, which have now been postponed to 2021. That, together with suspension of international flights due to the COVID-19 outbreak will significantly impact the number of international visitors in 2020.
As a multifaceted tourism market with an abundance of experiences on offer, Japan domestic demand has historically been stable. In 2019, domestic travellers spent 441 million room nights in Japan, four times the number of room nights spent by international guests. Domestic tourism consumption in 2019 reported a YoY growth of 7.3%, contributing JPY22 trillion (approx. US$206 billion) to the travel industry.
Following the lifted state of emergency on 25 May, domestic flights have gradually resumed in June and domestic travel restrictions were mostly lifted on 19 June.
Japan Airlines announced that it will increase the number of domestic flights starting from July in response to its forecast of a 20% recovery in demand in June, and an anticipated 40% recovery in the first half of July.
Mauro GasparottiDirectorSoutheast Asia +84 908 556 492 [email protected]
31.9milINTERNATIONAL VISITORS
25MAY
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Following a slight delay, the “Go To” Campaign is scheduled to be rolled out in August. Domestic travellers will be given 50% discounts and coupons of up to JPY20,000 per person per night for accommodation, shopping and eating at travel destinations. According to Travelzoo Japan’s recent survey on Japanese travellers’ response to this campaign, 71% stated that their anticipated number of trips between July and December this year will be the same as or higher than the number of trips taken over the same period in 2019.
Marking Japan’s first step in easing travel restrictions, Vietnam was chosen as its first partner. Vietnam is among the few countries that have been successful in containing COVID-19 pandemic, reporting zero community infection cases over the last two months. Business flights from Japan to Vietnam have partially resumed from 25 June. Japan is also in talks with Australia, New Zealand and Thailand to mutually ease travel restrictions.
Similar to other countries in Asia Pacific, Japan is working on easing travel restrictions from selected countries with low or sharply declining infection rates. However, the short-term focus will be on domestic travel.
DOMESTIC TOURISM
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Japan Hotel Room Take Up (nights spent)
Japan Distribution of Total Tourism Spend (2019)
Source: Japan Tourism Agency
Mill
ion
500
400
300
200
100
0
600International Domestic
2011 2012 2013 2014 2015 2016 2017 2018 2019
Domestic Overnight Trips62%
Inbound Trips17%
Domestic Daytrips
17%
Japanese Outbound Trips
4%
Source: JNTO
Japan Domestic Travel
Japan Domestic Trips by Month (2019)
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84%of all tourist room nights
in Japan
Over the past five years, on average domestic travel
accounted for
JPY22in tourism revenue
TRILLION
In 2019, Japanese travellers contributed
53%of all domestic visits
in Japan
In 2019, overnight visits accounted for
0
100
200
300
400
500
600
700
Mill
ion
-20%
-15%
-10%
-5%
0%
5%
10
0
100
200
300
400
500
Mill
ion
Overnight Trip Day-Trip
Janu
ary
Febr
uary
Mar
ch
Apr
il
May
June
July
Aug
ust
Sept
embe
r
Oct
ober
Nov
embe
r
Dec
embe
r
2011 2012 2013 2014 2015 2016 2017 2018 2019
Overnight Day-Trip yoy growth (Overnight) yoy growth (Day-Trip)
Source: Japan Tourism Agency
Source: Japan Tourism Agency
TOP POPULAR PREFECTURES BY DOMESTIC DEMAND
Number of Domestic Visitors (2019)
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Hyogo
Fukuoka
Kanagawa
Tokyo
0 20 40 - 80 10060
Million
Shizuoka
Leisure Other Purpose
Osaka
Chiba
Hokkaido
Aichi
Kyoto
Chiba
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TOP POPULAR PREFECTURES BY DOMESTIC DEMAND
Tourist Spend Per Person Per Trip (2019)
- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
JPY
Hokkaido
Okinawa
Nagasaki
Aomori
Leisure Other Purpose
Kagoshima
Kouchi
Niigata
Ishikawa
Oita
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OUTBOUND TOURISMJapan outbound travellers reached a record number of 20 million in 2019, reporting a healthy 5.5% CAGR (Compound Annual Growth Rate) between 2015 and 2019.
According to a recent survey conducted by Travelzoo Japan on Japanese travel plans, 65% said they would travel domestically in the three months after the state of emergency status has been lifted. In contrast, appetite for outbound travel is more subdued with 53% reporting that they would wait for at least seven months before travelling abroad again.
With borders expected to reopen gradually and monitored carefully, the market anticipates a propor-tion of this outbound demand to be redirected locally.
Japan Outbound Travel
total outbound travel spend in 2019
JPY4.8TRILLION
outbound average length of stay
8.7DAYS
of total outbound spend was attributed to leisure
76%of outbound travellers in
2019 visited Asia
60%
25
20
15
10
5
0
Source: Japan Tourism Agency
2010 2011 2012 2013 2014 2015 2016 2017 20192018
Mill
ion
Leisure Visiting Family Business
$
