TOKYO - More than 70 percent of accommodation facilities in Japan are facing labor shortages amid a boom in tourism, a critical driver of the economy, a government report said Friday, underlining the need for more investment in automation and the offering of better benefits to attract workers.
The annual white paper on tourism pointed to the possibility of a "vicious cycle" in the sector, with increased workloads leading more people to leave their jobs.
The government conducted a survey between December and January covering 522 accommodation facilities, of which 72.2 percent said they were "short of labor." They cited addressing the increased strain on current employees during busy seasons as an imminent challenge.
The shortage is not limited to tourism as Japan has a rapidly graying population with a declining birthrate, but service sector jobs tend to pay less than those in manufacturing. Known for its strict immigration policies, the country has been gradually opening its doors to foreign workers.
The government calls in the white paper for operators to ramp up investment in automated check-in systems and food service robots among other technologies.
Enhanced services will improve customer satisfaction and increase revenue, which in turn will help to boost wages for employees, according to the report approved Friday by the Cabinet.
Japan has seen a surge in inbound tourism, fueled by the weakness of the yen against currencies such as the U.S. dollar, making trips to the country cheaper for foreign travelers.
While the conflict in the Middle East has cast a pall over the tourism industry in recent months, the number of foreign visitors to Japan topped 40 million in 2025 for the first time and their spending hit a record. The government is aiming to raise the number to 60 million in 2030.
