A long-term upward trend in hotel occupancy rates in Tokyo looks to be over, with demand languishing from both Japanese and foreign travelers.
Average occupancy rates of 18 key hotels in Tokyo fell 3 percentage points on the year to 83.2% in July, according to data compiled by The Nikkei. The rate was still above the 80% mark, a level considered practically fully occupied, but slid on the year for a sixth straight month.
The rate decreased at 15 of the hotels. After an extended period of high occupancy, hotels raised room prices. This weighed down demand from Japanese customers, leading to lower occupancy rates. Shinagawa Prince Hotel, for instance, saw its rate drop 1.7 points as it raised room prices by about 6% on average. Many hotels are still raising prices to secure higher profit.
Foreign visitors to Japan increased nearly 20% on the year to 2.29 million in July, a single-month record, according to the Japan National Tourism Organization.
However, the stronger yen chilled demand from foreigners, according to some. "With the international environment changing drastically, business travel guests decreased," says an official of Palace Hotel Tokyo, whose July occupancy came in roughly flat on the year.
source by nikkei