Photo/Illutration Tourists crowd the streets of Kamakura, Kanagawa Prefecture, on a recent weekday. (Go Takahashi)

Consumers are complaining that hotels have jacked up their prices to coincide with the government’s travel subsidy program.

Some have even accused hotels of purposely hiking their rates to obtain the discounted amount for themselves through the program.

Although the Japan Tourism Agency has called on lodging facilities not to set inappropriate rates, local officials said it is difficult to determine a price increase level that would be appropriate.

The government started a domestic tourism program in April 2021, offering a subsidy of up to 5,000 yen ($34) per night for residents staying at hotels within their prefecture.

The program was later expanded to include neighboring prefectures, with the exception of Tokyo.

That program ended on Oct. 10 and was effectively replaced by the new subsidy program that will cover all parts of Japan for domestic travelers.

Local governments have received inquiries from their residents about higher hotel rates that have taken effect at around the same time as the start of the subsidy program.

A female entrepreneur in her 30s living in Tokyo was shocked when she tried to reserve a room at a Yamanashi Prefecture hotel for late November.

When she stayed at the same hotel on the same day last year, the cost for a room for two adults without meals was about 10,000.

But this year, the price was 38,000 yen. So she sought out other hotels.

Her usual travel companion, a company employee, lives in another prefecture and can travel only on weekends, when hotel rates are higher.

The travel subsidy program provides larger gift coupon amounts for weekdays.

“What kind of people can travel on weekdays?” the woman asked. “For those who can only travel when it is more expensive and congested, there is just dissatisfaction.”

A website of the Yamanashi prefectural government posted various messages from travelers, including one that said the asking price for a room was 10,000 yen when in the past the same room cost only 7,700 yen.

Others said the higher prices meant there was really no benefit in receiving a discount with the subsidy.

Officials in Okinawa and Iwate prefectures have contacted specific lodging facilities for an explanation on why they raised their rates.

One facility official said, “We raised the price to maintain a balance between supply and demand because there was a sudden increase in inquiries and reservations.”

Before the program started, the JTA issued guidelines to prefectural governments about how the money would be distributed.

The agency asked prefectural governments to monitor hotels to prevent the subsidies from being applied to inappropriate price hikes. The prefectural governments were also told to take strict measures if they confirmed inappropriate rate increases.

The Saitama prefectural government has obtained pledges from hotels saying they will not raise rates to obtain excessive profits.

JTA officials said hotels that act in inappropriate ways could be removed from the travel subsidy program.

But prefectural government officials said it is unclear when a price increase is inappropriate.

“Prices fluctuate depending on the season and availability of rooms, so it is difficult to make across-the-board comparisons,” an official with the Nagasaki prefectural government said.

A Niigata prefectural government official said, “We are not looking into what prices are being set.”

Others said the overall surge in consumer and energy prices around the nation have made price hikes inevitable in some cases.

(This article was written by Go Takahashi and Sachiko Miwa.)

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