Japan reopened its borders on Oct. 11 for the first time in nearly three years to vaccinated travelers without visas from 68 countries. Hoteliers are optimistic but still face challenges in recapturing hotel demand at pre-pandemic levels.
Reuters reports that international arrivals at Narita International Airport have increased 10 percentage points to roughly 30% of pre-pandemic levels since borders reopened.
“To return to 2019 levels, it’s not enough just for Japan to open up,” Narita International Airport President and CEO Akihiko Tamura told Reuters. “Of course, China has to change as well or it’s impossible.”
China began sealing its borders in 2020 and has since continued its zero-COVID policy. Tamura told the news outlet that Japan's delayed reopening coupled with the sizable lack of Chinese visitors coming through Narita will delay East Asia's tourism recovery to as late as 2025.
China's leader, Xi Jinping, also has not given any indication that the zero-COVID policy will end in the coming months, the New York Times reports.
Hotelier Sentiment
Jun Sakurai, group director of marketing at Hoshino Resorts, a Japanese-based international operator, said in an email interview that Oct. 11 marked a day that Japan, and its hoteliers, had been waiting for. The prospect of increased hotel reservations was only one of the reasons for optimism.
Inbound demand has picked up at Hoshino Resorts' most popular hotels. Its Hoshinoya Tokyo and Hoshinoya Fuji, for instance, are already 80% and 70% reserved for the coming months, respectively, Sakurai said.
Hoshino Resorts has more than 50 resorts across the country through a range of five hotel types: Hoshinoya, Kai, Risonare, Omo and Beb.
Hoshino Resorts is typically a popular choice among travelers from Asia, specifically Taiwan and Hong Kong, he said. Now, Hoshino Resorts is seeing increased interest from the U.S., Europe and Australia at its properties, he said.
When borders in Japan were closed, however, the majority of Hoshino Resorts' demand came from Japanese locals. The country relied on domestic travel initiatives like the Go To Travel campaign. Hoshino Resorts also pushed to cater to micro tourism, he said.
"We specified [micro tourism] as a small trip or short travel, where it is a way to invite people to visit and tour around a place only one to two hours by car from home with no prefectural restriction," he said. "We led the domestic micro-tourism movement with the Micro Tourism Promotion to boost Japan's economy and inspire travelers to rediscover their hometown through a new lens."
Specific properties that benefited from the micro-tourism push were Risonare Nasu, Hoshinoya Fuji and Kai Kawaji, he said.
Singapore-based Banyan Tree, an independent multi-branded hospitality group that manages and develops resorts, hotels and spas across Asia, America, Africa and the Middle East, just entered the Japan market in September, Adhiyanto Goen, head of brand communications, Banyan Tree Group, said via email.
Properties that are currently open, through a partnership with Wealth Management Group, are boutique hotels Dhawa Yura Kyoto and Garrya Nijo Castle Kyoto.
Winning Back Tourists
To help spur demand at Hoshino Resorts, Sakurai said the properties are offering free medical travel insurance to "new and discerning" travelers.
"We felt that since the pandemic, there has been an increase in concerns over receiving proper medical care or expressing one's conditions in a foreign country, so we decided to offer this to our international travelers," he said. "This medical insurance covers the cost of medical treatment of sickness including COVID-19 that occur during a stay at Hoshino Resorts properties in Japan."
On Oct. 11, Banyan Tree Group launched "The First Trip" campaign at Dhawa Yura Kyoto and Garrya Nijo Castle Kyoto, which aims to make the return to Japan as smooth as possible.
"'The First Trip' Japan edition offers complimentary cultural adventures connecting visitors to local culture and history, as well as savings on best available rate. At Garrya Nijo Castle Kyoto, guests will have the chance to explore the UNESCO World Heritage site of Nijo Castle, while at Dhawa Yura Kyoto they will get to experience the legendary sento ritual at the Kyoto Public Baths where locals visit to bathe and socialize," Goen said.
The launch of this campaign has resulted in strong demand from travelers across South East Asia, Australia, America and Europe as well as Hong Kong, which has recently eased its travel policies, he added.
"We anticipate March 2023 will be the peak season given the cherry blossom season," he said. "There's no better time to visit Japan given the Japanese yen is trading lower against the U.S. dollar."
New Openings Across Japan
In 2023, Hoshino Resorts plans to open its first airport hotel, Omo Kansai Airport, offering easy access to Kansai International Airport in Osaka, Japan.
The hotel will center its service around convenience and comfort, offering amenities such as express buffets, a rooftop bar and public baths with saunas, Sakurai said.
In the midst of the pandemic, the company opened several hotels that it is "eager for Western travelers to finally be able to experience," Sakurai said.
The 100-room Hoshinoya Okinawa, for example, opened in July 2020 as a beachfront, luxury island resort in the coastal village of Yomitan.
Banyan Tree Group's upcoming openings include luxury urban resort Banyan Tree Higashiyama Kyoto in 2024, ski resort Cassia Hirafu in 2025 and luxury resort Banyan Tree Ashinoko Hakone slated for 2026.