2019-12-30

Shortage of Luxury Hotels in Japan Spurs Govt. to Offer Loans to Developers

News

Japan is currently experiencing a shortage of luxury hotels in comparison to other major tourist destinations. The 5 Star Alliance, which claims to list every 5-star hotel in the world, shows that Japan only has 32 five-star hotels. This pales in comparison to China, which boasts 137 five-star hotels, Thailand with 112, and even Indonesia with 58 five-star hotels.

Chief Cabinet Secretary Yoshihide Suga stated during a press conference this month that the Japanese Government will incentivize developers to build 50 Five Star Hotels in the country by offering loan assistance. “Japan simply does not have enough hotels with suite rooms to cater to affluent visitors,” stated Suga.

Unfortunately, the hotel shortage couldn’t come at a worse time, as the Government has set a target of 40 million visitors to Japan by 2020. Estimates cite that there is a shortage of at least 14,000 hotel rooms for the planned number of travelers to next year’s Olympic Games. Relief has been coming in slowly, as hotels from Hilton Group, Ritz Carlton, and Japan’s Mori Co. will open next year.