The theme for 2024 across the Asia-Pacific region was, in large part, the strong outperformance of travel demand to Japan. So far in 2025, it's been more of the same.
Speaking on the latest episode of the Hotel News Now podcast, STR's senior director of Asia Pacific Jesper Palmqvist said things will have to cool eventually, but there are no signs yet that a slowdown is on the horizon.
He said the fundamental factors that drive strong travel demand to Japan remain in place.
"Exchange rates are still over 150 [yen] per dollar and absolutely for anyone who leans on the dollarized economy — and that's most currencies — it is affordable," he said. "And then it is just that with Japan people come back with good experiences and there's very little scandals or things that have happen. People feel safe."
The high levels of tourism in Japan are garnering some local backlash, including in Kyoto where new hotel taxes are being introduced. But Palmqvist said those taxes in particular are unlikely to move the needle on hotel demand.
"It's a political tool," he said. "It's an economic tool. It's what people in power and in tourism try to use as one of the levers" to pull to influence the flow of tourists.
Other topics discussed on this week's episode include:
- The expected impact of the Lunar New Year holiday
- A broad-based strong start to the year across the region
- 2025 expectations