Japanese media outlet Nikkei Chinese News recently published an article stating that Japan's tourism remains vibrant even without Chinese tourists. The article also pointed out that high-end tourists from Europe and the United States are stepping in to fill the gap left by Chinese travelers, driving hotel prices in Japan to new highs.
Nikkei Chinese News cited data from Japan’s National Tourism Organization, indicating that from January to April this year, the share of Chinese visitors among total inbound tourists dropped sharply from 22% to just 10%.
One might assume that fewer tourists would lead to lower hotel prices and discount promotions. Yet the opposite has occurred: data shows that the average room rate for domestic hotels in Japan reached 23,397 yen (approximately 994 RMB) in April—4.6% higher than the historical high set in April 2025—once again breaking records.
On the surface, it appears that European and American tourists have indeed arrived in large numbers and are staying in high-priced hotels, supporting elevated rates. However, there are many hidden details behind this picture.
It is objectively true that a higher proportion of European and American tourists are occupying premium hotels compared to Chinese visitors. But this trend is rooted in a crucial background factor: the sharp depreciation of the Japanese yen.
A significant portion of these European and American visitors are actually budget-conscious "backpackers" rather than affluent travelers. They aren’t truly wealthy. In the past, their budgets only allowed them to stay in economy hotels. Now, due to the massive depreciation of the yen, the same amount of money can buy significantly more yen, enabling people who previously could only afford mid-to-low-tier accommodations to now easily afford luxury hotels.
This is akin to someone exploiting a currency exchange loophole. Your wallet still holds the same amount of money, but upon arriving in Japan, your purchasing power suddenly soars. What used to be a three-star experience now feels like a five-star one. This isn't because tourists have become more upscale—it's because the yen’s purchasing power has plummeted.
Secondly, data reveals that the total number of foreign visitors to Japan in April actually declined by 5.5% year-on-year. Visitor numbers from countries such as the UK, Italy, Spain, and Germany fell by between 10% and 30%. Therefore, the so-called “European and American high-end tourists filling the void” cannot compensate for the overall loss of inbound travelers. Since the total number of foreign visitors is decreasing while hotel prices are rising, it indicates that the real driver behind price hikes lies elsewhere.
Moreover, it should be noted that Japan’s hotel price increases are not solely demand-driven. Data shows that the annual average occupancy rate for Japanese hotels in 2025 rose by only 1 to 2 percentage points compared to 2024, remaining largely flat. Yet hotel prices began climbing steadily from autumn onward, reaching over 18% year-on-year growth by January 2026. This phenomenon suggests that the primary reason for price hikes is not supply-demand imbalance, but rather hotels shifting rising costs—such as utilities and labor expenses—onto consumers.
Original source: toutiao.com/article/1867025946428416/
Disclaimer: The views expressed in this article are those of the author alone.