JAPAN — Japan’s tourism industry is thriving, with record-breaking visitor numbers, but a looming workforce shortage threatens the nation’s ambitious 2030 goal of attracting 60 million travellers.
A recent Asia Pacific Institute of Research report, cited by South China Morning Post, warns that 536,000 workers will be needed by 2030 to sustain the industry. Without them, Japan’s reputation for omotenashi—its tradition of impeccable hospitality—could be at risk.
Tourism growth is on the rise, but the workforce is struggling to keep up
In 2024, Japan welcomed 36.9 million tourists, with numbers expected to exceed 40 million this year. Yet, the industry is struggling to rehire and retain skilled workers who left during the pandemic.
Masaru Takayama, president of Kyoto-based Spirit of Japan Travel, says the shortage is especially severe in rural areas, where businesses are unable to find experienced staff.
“The lack of skilled workers is already being felt in the sector,” said Takayama. “Many businesses had to lay off staff during the pandemic, and now that tourism is booming again, those employees have moved on to other industries. We’re facing a major gap in experience and knowledge.”
The need for foreign workers and the challenges ahead
While some Japanese companies are turning to AI for solutions, Takayama argues that technology can’t replace the human element required in the tourism sector, where roles such as bus drivers, tour guides, and hotel managers are essential. He also highlighted the long hours, weekend shifts, and relatively low pay that deter many young workers from entering the industry.
Veteran travel analyst Ashley Harvey agrees, noting that working conditions in tourism are often less favourable compared to other industries. “Tourism jobs are demanding, and that makes it difficult for employers to fill positions,” he said. “Ultimately, the staffing shortages may reduce efficiency, but tourism is a business that relies on human interaction and care.”
The problem is compounded by Japan’s ageing population and declining birth rate, which makes it unlikely that a domestic solution will emerge in time. Harvey suggests that the only viable option for the tourism sector is to open the door to foreign workers—a solution that could be controversial but necessary to maintain Japan’s reputation as a top-tier destination.
“If Japan is serious about its 2030 tourism goals, it must accept that there aren’t enough local workers and consider foreign labour,” he said.
In some regions, such as Shizuoka and Kanagawa, foreign workers are already filling key roles in hotels and tourist services. But whether Japan will fully embrace this change remains uncertain.
As Japan moves closer to its target of 60 million visitors by 2030, the nation must confront its labour shortage head-on, with a mindset shift that could be pivotal for the future of its tourism industry.