Japan’s fast-growing tourism industry is facing a major workforce challenge, with more than 70% of accommodation facilities reporting labor shortages. The latest government tourism white paper highlights the urgent need for automation and better employee benefits to support the sector’s continued growth.
According to the annual report approved by the cabinet on Friday, a government survey conducted between December and January covered 522 accommodation facilities. Of these, 72.2% said they were experiencing labor shortages, with many identifying the growing workload on existing employees during peak travel seasons as an immediate concern.
The report warns of a possible “vicious cycle” in the industry, where rising workloads could lead to more employees leaving their jobs, further worsening the staffing shortage.
The labor crunch extends beyond tourism as Japan continues to face a rapidly aging population and a declining birthrate. Service sector jobs also tend to offer lower wages than manufacturing roles. Although Japan has traditionally maintained strict immigration policies, the country has gradually begun welcoming more foreign workers to help address workforce gaps.
To tackle the issue, the government has urged accommodation operators to increase investment in technologies such as automated check-in systems and food service robots. The report states that improved services can enhance customer satisfaction, increase revenue, and ultimately support higher wages for employees.
Japan’s tourism industry has experienced strong growth, driven by the weak yen, which has made travel to the country more affordable for international visitors, particularly those using currencies such as the U.S. dollar.
Although the conflict in the Middle East has affected the tourism industry in recent months, Japan welcomed more than 40 million foreign visitors in 2025 for the first time, while visitor spending reached a record high. The government is now targeting 60 million international visitors by 2030.
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