Soaring Inflation Pushes Up Hotel Rates, Dampening Golden Week Tourism
Hittin' the Road for Golden Week? Think Again, Mate!
It's that time of the year again, when Japan's annual Golden Week holiday rolls around and everyone's itching to pack their bags for some well-deserved R&R. But hold your horses, folks, because this year's Golden Week is a bit of a downer.
Inflation’s got a grip on the Japanese economy, and it's put a damper on folks' travel plans. With cabbage, rice, and electricity bills skyrocketing, the pain of rising prices has left a bitter taste in the mouths of consumers in the world's fourth-largest economy.
The Japanese yen's slide since 2022 has opened the floodgates for record numbers of foreign tourists, who are flocking to Japan's numerous attractions, from Mount Fuji's grandeur to shrines and sushi bars.
With a tourist influx comes soaring demands for hotel bookings, sending hotel rates in Japan's major cities surging by about 16% compared to last year. A survey from the business daily Nikkei confirms this depressing trend.
As a consequence, domestic travelers are looking at Golden Week with a mix of apprehension and dread. A poll by major travel agency JTB revealed that just 20.9% of respondents plan to embark on a trip, a decrease of 5.6% compared to last year. Another survey by marketing research firm Intage found that the percentage of those planning to travel domestically dipped by two percent from last year.
"The biggest reason seems to be the inflation that's pinched their wallets," Atsushi Tanaka, a tourism studies professor at Yamanashi University, told AFP. "Because the influx of tourists is so phenomenal, hotel operators don't need to lower their accommodation prices, making it difficult for Japanese people to afford travel."
If you thought domestic travel would be your best bet, think again! According to Intage, traveling abroad is a pipe dream for many, edging verging on being an "unattainable luxury." Nevertheless, the average budget for Golden Week outings has inched up slightly this year, indicating that holidaymakers have accepted the higher costs.
"It shows they're resigned to the fact that it's just going to cost them more this year to do anything," Intage's Motohiro Shimogawara told AFP.
Despite the gloomy picture, Japan logged more than 36.8 million tourist arrivals in 2024, surpassing 2019's record of nearly 32 million. The government has set an ambitious target of doubling tourist numbers to 60 million annually by 2030.
But, much like other global tourist magnets, there's growing pushback from residents against overtourism. Frustration about overcrowding, traffic violations, and bad behavior from some visitors is mounting in tourist hotspots like Kyoto and towns near Mount Fuji.
So there you have it! Golden Week might not be the golden ticket you thought it was. If you can't afford the high costs, or you're not keen on dealing with the crowds, it's probably best to sit this one out. And who knows? You might even save a pretty penny for next year's adventures!
- In light of the worldwide fourth-largest economy's inflation issues, Japan's domestic travelers are increasingly concerned about the expenses during this year's Golden Week, as they grapple with rising prices in daily necessities like food, electricity, and cabbage.
- The surge in foreign tourists, attracted by the depreciation of the Japanese yen since 2022, has led to significant increases in hotel rates in major cities, making domestic travel even more expensive for the average Japanese citizen.
- As a result, many Japanese people are reconsidering their travel plans for Golden Week, with surveys showing a decrease in the number of respondents planning domestic trips. Some are opting for "staycations" or prioritizing personal-finance management and budgeting over vacationing.
- In the face of these challenges, some Japanese holidaymakers have decided to splurge a bit more for their Golden Week outings, indicating an acceptance of the escalating costs. However, the average budget remains relatively conservative, when compared to pre-pandemic levels.
- The influx of tourists, coupled with the rising costs, has sparked concerns about overtourism in popular destinations like Kyoto and towns near Mount Fuji. Residents are expressing frustration over overcrowding, traffic violations, and unruly behavior from some visitors, creating a tense atmosphere in these tourist hotspots.
