“Hotels that once cost a few hundred yuan now charge over 1,000 yuan per night—prices have more than doubled!” Complaints about exorbitant hotel rates and slipping service quality are pouring in from Chinese travelers planning summer trips to Japan.
The surge stems from multiple factors. First, Japan’s tourism boom, fueled by cultural allure, visa relaxations, and the 2025 Osaka Expo, has driven visitor numbers to record highs. From January to April 2025, 14.45 million tourists visited Japan, with 3.13 million from mainland China (up 68.1% YoY). In April alone, foreign arrivals hit 3.9 million, a monthly record. This demand has strained hotel supply: Osaka hotel rates rose 40% YoY during Golden Week 2025, while Kyoto saw a 20% increase.
Inflation also plays a role. Japan’s core CPI rose 3.8% in April 2025, with food prices up 7.2%—the highest in 40 years—pushing up hotel operating costs for labor, utilities, and supplies. Additionally, a recent price-fixing scandal involving 15 Japanese luxury hotel chains, which exchanged pricing data, may have artificially inflated rates.
Compounding the issue is a severe labor shortage in Japan’s hospitality sector. As baby boomers retire, hotels are struggling to maintain service standards. With average annual salaries for hotel staff at around ¥3.5 million ($25,000), well below other industries, turnover is high and training is insufficient. This has led to reduced services and guest complaints, a stark contrast to Japan’s once-vaunted “omotenashi” hospitality.
In contrast, China’s hotel market offers greater affordability and improving service. Mid-range hotels in China’s second-tier cities cost ¥300-600/night, with competitive pricing and value-added services like 24-hour reception and free laundry. Fierce competition drives constant service upgrades, with guest reviews directly influencing bookings.
For summer travelers, experts suggest: opt for domestic trips in China for better value, or adopt flexible strategies for Japan—book early, consider suburban accommodations, and manage expectations. Japan’s hotel industry may need to learn from China’s model: raising wages, standardizing training, and prioritizing guest feedback to resolve the “high price, low service” paradox.
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