Projections by the Kansai-based Asia Pacific Institute of Research indicate that if the government’s target of 60 million foreign tourists by 2030 is achieved, Japan could face a shortfall of approximately 536,000 workers in the accommodation and food service industries, according to the SCMP
The report noted that this potential staffing gap could undermine the country’s tradition of unwavering hospitality—known as omotenashi.
A survey by the Japan Federation of Service & Tourism Industries Workers’ Unions revealed that 85 per cent of travel and hospitality operators have been compelled to limit their operating hours due to staffing shortages, according to Travel Voice, a Japanese travel and trade newsletter. Measures such as reducing operational days (51 per cent), shortening business hours (33 per cent), and decreasing available rooms (27 per cent) have become common, the report said.
Why is Japan’s tourism sector grappling with staff shortages?
According to various media reports, industry experts say this challenge stems from several interrelated factors.
Ageing population and demographic shifts
Unlike India, Japan is facing dual challenges of population decline and ageing. Younger generations are opting to have fewer children, while advances in healthcare have extended life expectancy. Japan’s Chief Cabinet Secretary Yoshimasa Hayashi described the demographic situation as critical last year, warning that the next six years represent the final opportunity to potentially reverse the trend.
Surveys indicate that younger Japanese are increasingly hesitant to marry or have children, deterred by uncertain job prospects, rising living costs, and a corporate culture that poses challenges for women and working mothers. This has led to a shrinking workforce, making it difficult to fill positions across sectors, including tourism. From factories to hotels and restaurants, Japanese businesses are struggling to operate at full capacity—not due to a lack of customers but a shortage of workers. The Bank of Japan has blamed chronic labour shortages as the main reason for weak economic activity.
Wages and work-life balance deter young workers
Tourism jobs in Japan are known for demanding schedules, limited vacation time, and relatively low wages, making them less appealing to young workers, according to the SCMP. Ashley Harvey, a veteran travel marketing analyst in Japan, told the publication that working conditions and wages in the tourism sector were generally less favourable than in other industries.
“Tourism is a tough job to be in, and that makes it hard for employers to fill all their positions,” he said. “I expect the staff shortages will ultimately lead to reductions in inefficiency, but this is a business that requires the human touch.”
Pandemic layoffs deepen labour challenges
Masaru Takayama, president of Kyoto-based Spirit of Japan Travel, said to SCMP, “We are already seeing a shortage of people in the industry, most definitely. Many companies in the travel sector had to lay off staff during the pandemic, and those people found jobs in different sectors. Now that tourism is up and running again—and busier than ever—we have lost those people to new careers, and we have lost their skills and knowledge.”
Takayama noted that the staffing shortage was especially severe in Japan’s rural areas.
What’s the solution?
“The only solution to the manpower shortage in the tourism sector is to permit foreign workers to come in to fill the positions that are empty,” said Harvey.
To tackle this issue, industry players are adopting innovative strategies to attract and retain staff. For instance, according to a Japan Times report, Mystays Hotel Management has doubled salaries to unprecedented levels, offering monthly wages of ¥500,000 ($3,210) for new hires in its management training programme.
In response to these challenges, the Japanese government is implementing measures to attract more foreign visitors to rural areas, aiming to revitalise local economies and ease the concentration of tourists in major cities, according to the Japan Times. Strategies include experience-based programmes that showcase local nature, traditional culture, and cuisine, as well as enhancing accommodation facilities to add value for visitors.
Barkha Mathur, New Delhi
