The booming Japanese tourism The sector could encounter significant difficulties in maintaining its growth over the coming years because of a projected shortage of over 500,000 workers by 2030, as stated in a report from a regional research institute.
Industry insiders noted that 2030 was the official target year for Japan To accommodate 60 million incoming travelers, the significant staffing shortfall might damage the country's image. omotenashi - The age-old Japanese dedication to catering to the requirements of visitors.
"Definitely, we are witnessing a scarcity of professionals in this sector," stated Masaru Takayama, who serves as the president of Kyoto-based Spirit of Japan Travel, an incoming tourism company.
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A report from the Asia Pacific Institute of Research based in Kansai, published earlier this month, indicates that Japan’s tourism industry will encounter a workforce shortage of approximately 536,000 employees by 2030.
Takayama stated to This Week in Asia: “Many firms within the travel industry were compelled to let go of employees during the pandemic, and these individuals transitioned into various other fields for work. With tourism now experiencing a resurgence—busier than before—we find ourselves lacking those workers due to their shift to new professions, along with the expertise they possessed.”
He highlighted that the scarcity of personnel was notably severe in the countryside areas of Japan.
Investors in Japan are fast-tracking hotel developments to cater to the surging tourist influx. The country welcomed a historic 36.9 million visitors in 2024, with expectations reaching over 40 million this year, as reported by Japan Travel Bureau, a leading travel agency.
However, stakeholders in the tourism industry overlooked staffing shortages when making plans, according to Takayama. This shortage has caused wages at major tourist destinations to triple compared to what they were just a few years back. For instance, workers in the well-liked ski town of Niseko, located in Hokkaido, have experienced this significant rise in compensation, as stated by Takayama.
While more Japanese companies were looking to tap artificial intelligence as a solution, the tourism sector could not rely on the technology to meet its manpower challenges as it required many workers ranging from bus drivers and tour guides to hotel executives, Takayama said.
"Many find this discouraging because the work often involves lengthy shifts and many weekend commitments, coupled with less-than-ideal compensation. This particularly affects young employees whom the tourism sector relies heavily upon," he noted.
Ashley Harvey, a veteran travel marketing analyst in Japan, agreed that working conditions and pay in the tourism sector were typically worse than elsewhere, while more young Japanese were insisting on a better work-life balance.
Working in tourism is challenging, which makes it difficult for companies to recruit enough employees," he stated. "The staffing shortages may eventually result in less efficiency, yet this industry relies heavily on personal interaction.
Harvey stated that the issues of Japan’s declining birthrate and aging populace would likely persist for quite some time, perhaps indefinitely. Moreover, he suggested that the most practical approach to address these challenges may not find favor with certain segments of the Japanese population.
"The sole remedy for the staffing deficit in the tourism industry is to allow foreign workers to enter and occupy the vacant roles," he mentioned additionally.
Harvey mentioned that during his visits to various locations in Japan like Shizuoka and Kanagawa, he observed an increase in the number of foreign laborers present.
We're now observing an increase in individuals from Southern Asia working in Japanese convenience stores, and similarly, there is a significant presence of Indians, Nepalese, and others manning the reception desks at hotels.
Introducing more foreign workers might be a challenging subject to discuss in Japan; however, if the nation wishes to maintain its status as a leading tourist spot, attitudes must shift accordingly, Harvey suggests.
He stated, "If Japan aims for a thriving tourism sector and the government intends to meet its objective of attracting 60 million tourists by 2030, then they must acknowledge that there aren’t sufficient Japanese residents to fulfill these positions and should consider accepting foreign laborers."
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