ITB 2024 Special Reporting
New to the Japanese hotel market
Sunday, 28th October 2007
Source : Deloitte
In response to demands from the Japanese hotel industry and for the first time ever, comprehensive monthly rate and occupancy performance data - is available on the Japanese hotel market. The new survey tracks 16 markets across the country – providing analysis by key cities as well as by island.

Deloitte has launched a Japan edition of the HotelBenchmark™ Survey. The Japan survey is another first for Deloitte's HotelBenchmark™ team and is being showcased today in Tokyo at the Hotel Management Conference hosted by Deloitte and Ota publications.

During the first eight months of 2007, the Japanese hotel market has seen room revenue per available room (revPAR) increase by 3.1%, to JP¥11,307.  Like most other markets across Asia, performance has been driven purely by improvements in average room rates. 

Given that Japan is currently experiencing a prolonged period of growth it is perhaps not surprising that it is hotels in primary cities that have been the main benefactors.  Overall revPAR has increased by 5.1% year-to-August, whereas in secondary and tertiary locations, growth is just above 1%.

Hotels in Tokyo, Japan's commercial centre have seen the strongest gains of any market, with revPAR up 10.2% to JP¥14,571.   Despite concerns over increasing supply, as yet, this has had little impact – with occupancy levels unchanged on last year at 79.0%.  Osaka is also having a good year, playing host to the World Athletics Championships in August.  The city has seen revPAR rise by 6.1% to JP¥11,217 year-to-August.

However, it is hotels located in Tokyo Bay, a key feeder market for Tokyo Disneyland and on the holiday isle of Okinawa that command the highest average room rates and revPAR in the country.  Currently revPAR in each of these markets stands at JP¥18,006 and JP¥17,308 respectively.

Ryuji Sawada, Partner in charge of tourism, hospitality and leisure at Deloitte Japan said: "It's an exciting time for the Japanese hotel industry. Improved economic conditions are increasing people's disposable income helping drive domestic demand. Meanwhile the government's innovative marketing campaign Yokoso Japan! is attracting more tourists – which is benefiting hoteliers everywhere."

He added: "Looking to the future, I expect the excitement to continue for Japan, with Tokyo bidding to host the 2016 Olympics.  And if the ban on casinos is lifted then this could have a dramatic impact on the tourism market". 
Commenting on the launch of the Japan survey, Lorna Clarke, Executive Director of HotelBenchmark said: "We are delighted to be the first to provide hoteliers with comprehensive monthly performance data on markets across Japan. 

Whilst Japanese hotels may not be seeing the growth rates seen across the rest of Asia the market is nonetheless doing well, reaping the rewards of a period of prolonged economic growth. Hoteliers are also benefiting from increasing visitor numbers which have risen 40% since 2003. With ambitious targets in place to welcome 10 million tourists per year by 2010 this looks set to continue." 

The HotelBenchmark™ Survey by Deloitte contains the largest independent source of hotel performance data in the world and tracks the performance of over 7,800 hotels and 1.3 million rooms every month. Monthly surveys are produced on the following areas:

  • Four regional rate and occupancy surveys covering Asia-Pacific, Europe, Central & South America and the Middle East & Africa.
  • Thirteen country/sub region rate and occupancy surveys for Australia, Benelux, China, Germany, India, Italy, Japan, New Zealand, Nordic Countries, Qatar, Southern Africa, Spain and UK.
  • Two city rate and occupancy surveys for London and Paris.
  • Monthly profitability surveys on Germany and London.
  • On an annual basis we produce profitability surveys tracking performance across all regions of the world.
  • Daily HotelBenchmark™ tracks rate and occupancy everyday for a number of markets across the Asia, Europe and the Middle East.
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