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Japan – Influx of tourists leaves hotels and taxis struggling to find staff

25 November 2022

In early October, Japan reopened its borders to overseas visitors, lifting some of the strictest pandemic border controls in the world. With the removal of a 50,000 daily cap on arrivals, the reinstatement of waivers for short-term visas and dropping rules requiring tourists to visit as part of group tours, Japan nation is poised for a tourism boom, assisted by a weaker yen making the country more affordable to visit.

As a consequence, Japan’s transport and hospitality industries are struggling to find enough staff to keep up with a rebound in demand, with the number of visitors more than doubling.

Data from the Japan Accommodation and Lodging Foundation indicated that the number of people working at hotels and inns is 30% below pre-pandemic levels.

“It’s going to be difficult to catch taxis if overseas visitors return to pre-coronavirus levels,” said Mr Kazuki Otsuka, chief executive of Daiwa Motor Transportation, one of the country’s largest taxi and limousine operators.

Aviation firm, ANA Holdings, which seconded staff to other industries as the carrier cut back on flights, is now recalling them as it adds back routes. Flights to Narita from Hong Kong have been almost fully booked since 11 October, according to a spokesman for the airline.

Japan, like many staffing markets is suffering with an extremely tight labour market. The job-to-applicant ratio rose 0.02 points from the previous month to 1.34, the Ministry of Health, Labor and Welfare said. The ratio means there were 134 job openings for every 100 job seekers.