FIFA World Cup Hospitality Tickets: Young Japanese workers are increasingly leaving the tourism sector in search of better pay and improved work-life balance, exacerbating labor shortages in an industry vital to Japan’s economy, according to a report by the South China Morning Post (SCMP). Research from the Kansai-based Asia Pacific Institute of Research suggests.
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That if Japan meets its goal of attracting 60 million foreign tourists by 2030, the country could face a workforce deficit of around 536,000 in the accommodation and food service industries, SCMP reported. This labor shortage threatens Japan’s renowned culture of exceptional hospitality, known as omotenashi, which has long been a hallmark of its tourism industry.
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A survey conducted by the Japan Federation of Service & Tourism Industries Workers’ Unions found that 85% of businesses in the travel and hospitality sector have been forced to cut operating hours due to staff shortages, according to Travel Voice, a Japanese travel and trade newsletter. The report highlights various measures taken to cope with the crisis, including reducing operational days (51%), shortening business hours (33%), and limiting room availability (27%).
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Industry experts attribute Japan’s growing labor crisis to several interconnected factors, as reported by various media sources. Unlike India, Japan faces the dual challenge of a declining population and an aging society. Birth rates have steadily fallen as younger generations choose to have fewer children, while advancements in healthcare have extended life expectancy.
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As a result, the country’s workforce continues to shrink, making it increasingly difficult to fill roles across multiple industries, including tourism. From factories to hotels and restaurants, businesses are struggling to maintain full operations not because of a lack of demand but due to severe labor shortages. The Bank of Japan has even cited chronic staffing gaps as a key factor behind weak economic activity.
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If this trend persists, the strain on Japan’s tourism sector and overall economy could become even more pronounced in the coming years. Japan’s tourism sector struggles to attract young workers due to demanding schedules, limited vacation time, and relatively low wages, according to the South China Morning Post (SCMP).
Industry expert Ashley Harvey, a seasoned travel marketing analyst, noted that working conditions and compensation in tourism are generally less competitive than in other industries. Tourism is a tough job to be in, and that makes it hard for employers to fill all their positions Harvey told SCMP. I expect the staff shortages will ultimately lead to reductions in inefficiency, but this is a business that requires the human touch.
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Masaru Takayama, president of Kyoto-based Spirit of Japan Travel, explained to SCMP that many tourism companies were forced to lay off employees during the crisis. These workers later found jobs in other industries, and now that tourism is booming again, the sector has lost both experienced staff and their valuable expertise.
Takayama emphasized that labor shortages are particularly severe in rural areas, where finding skilled workers remains an even greater challenge. As Japan’s tourism sector struggles to recover, addressing wage concerns and improving working conditions may be key to attracting and retaining talent in the long term.
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