The situation is especially significant given the exceptional growth of inbound tourism. Japan welcomed 42.68 million international visitors in 2025, the highest annual total in its history. This increase was driven by the recovery of global travel, the strength of the country’s tourism offering and the appeal of its major cities, cultural attractions and natural destinations. The government has also set an ambitious target of attracting 60 million foreign visitors annually by the end of the decade, a goal that will require a substantial expansion in the industry’s operational capacity.
However, the steady rise in demand is placing growing pressure on a sector that was already facing structural difficulties before the latest tourism surge. Many properties are operating with reduced teams, forcing employees to take on heavier workloads, particularly during peak travel periods. According to the official survey, nearly 80 percent of accommodation businesses said staff shortages had significantly increased the burden on existing workers, while around half reported spending more time and resources on recruitment. In addition, four out of ten establishments acknowledged that they had reduced certain services because they did not have enough employees.
The causes of the problem are linked to a combination of demographic and labor market factors. Japan has one of the world’s oldest populations and a steadily shrinking workforce, a trend affecting many areas of the economy. In the hospitality industry, long working hours, rotating shifts, relatively low wages and limited access to time off make it difficult to attract and retain employees. These conditions often lead workers to seek opportunities in other industries offering higher pay, more predictable schedules and greater job stability.
To address the shortage, many companies have increased their reliance on foreign workers and part-time employees. However, authorities believe these measures offer only partial relief and that longer-term solutions will be necessary. Proposed responses include higher wages, improved working conditions, better employee benefits and the development of more attractive workplaces, particularly for women and younger workers, who are regarded as essential to strengthening the future labor supply.
Digitalization is also emerging as a key tool in responding to the challenge. A growing number of hotels are adopting self-check-in systems, automated procedures, mobile applications for customer service and artificial intelligence-based solutions designed to streamline administrative tasks and reduce pressure on staff. While these technologies can improve operational efficiency, industry specialists agree that they cannot fully replace the personalized service associated with Japanese hospitality, which remains one of the qualities most highly valued by international visitors.
The Japanese government considers the availability of workers essential to ensuring the sustainable development of tourism. The industry not only generates significant foreign exchange earnings but also supports employment, stimulates regional economies and contributes to the revitalization of communities outside the country’s largest urban centers. Preserving service quality will therefore be crucial to maintaining Japan’s international competitiveness in a market where travelers increasingly evaluate the entire experience of their stay.
Labor market conditions have consequently become one of the most important issues shaping the future of Japanese tourism. If the country can balance rising demand with better employment conditions, greater investment in technology and an effective strategy for attracting new workers, it will be better positioned to sustain the growth of an industry that continúes to set new records. Without such progress, staff shortages could become one of the main obstacles preventing Japan from achieving its ambitious tourism goals in the years ahead.
