Slow return of Chinese tourists stalls Japan's hotel recovery

Occupancy rate drops below 70% for the first time in four months

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The Karuizawa Prince Hotel West. Japan's hospitality industry is recovering but needs more Chinese tourists. (Photo courtesy of Seibu Prince Hotels Worldwide)

SHOKO HIRUTA, Nikkei staff writer

TOKYO -- The Japanese hospitality industry's recovery from COVID-19 has reached a standstill, despite government travel incentives and an increase in foreign tourists, as travelers from China return slowly.

Japan's average occupancy rate for hotel rooms fell 10 points on the month to 64.2% for January, according to U.S. research firm STR, falling below 70% for the first time since September.

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