Influx of Foreign Workers Alleviates Labor Shortage in Japan's Hospitality Industry

With the surge in inbound tourism to Japan, the hospitality industry is struggling with a substantial labor shortage and is turning to foreign staff to help facilitate operations, including tasks such as cleaning and managing hotel rooms. To address this issue, hotels are intensifying their training programs for foreign workers to not only hire them but also retain them for the long term.

On June 17, a reception event was organized at Haneda Airport for Vietnamese interns who are gaining experience working at a hotel managed by Sumitomo Realty and Development Co. This event is part of a larger effort to support foreign workers, with videos being shared with their families back in Vietnam. Since the first group of 80 Vietnamese trainees joined the company in 2019, the recruitment has expanded to 400, predominantly consisting of Vietnamese women who currently manage roughly 3,500 of the hotel’s accommodations.

Tomoyuki Komori, the president of Villa Fontaine Hotel, highlighted the impressive skills of these workers, noting their friendly demeanor and positive feedback from guests. Despite the ongoing labor shortage— with the hospitality workforce at 580,000 employees in 2024, still below the 650,000 pre-pandemic figure— hotel operators are optimistic about future hiring prospects, recognizing the importance of maintaining their workforce.

The Ministry of Labor's data indicates a 4.4 percent vacancy rate in the accommodation and food services sector, which exceeds the 2.9 percent rate across all industries. To combat this shortage, hotels are focusing on onboarding international staff to support daily operations. In a bid to secure their commitment, Sumitomo Realty promotes foreign employees to higher supervisory roles and offers salary increases after three to five years of service.

The company also emphasizes family engagement, having organized numerous events in Vietnam to keep families informed about their relatives working in Japan. New employees like Nguyen Thi Thuy and Nguyen Thi Nhung expressed ambitions to apply the skills they acquire during their tenure to benefit their families back home in Vietnam.

Daiwa House Industry Co., managing 56 hotels, employs 777 Indonesian women and hires approximately 200 annually through their language schools in Indonesia. Employees undergo periodic evaluations to assess their skills and provide pathways for advancements and pay raises. Similarly, Mori Trust Hotels and Resorts Co. has actively involved its foreign staff in programs aimed at fostering diversity, including Japanese language courses focused on Japanese hospitality customs.

Miwako Date, the company's president, remarked on the future potential of the industry as Japan aims to welcome 60 million tourists yearly by 2030. She acknowledged the pressing need to develop a robust support system for quality hospitality delivery, suggesting that mitigating the labor shortage is essential for sustaining growth in one of Japan’s key economic sectors.