Pricey hotels have been popping up one by one in Okinawa and the ancient capital of Kyoto, just in time for demand to return now that tourists are back.

According to the Kyoto city government, in the three years since fiscal 2018, the city has seen an increase of about 12,000 hotel rooms.

But the sudden rush of new hotels has more to do with confidence on the part of the hospitality industry during the pandemic than the sudden influx of wanderlusts.

From the start of the pandemic, and even when Japan had closed its doors to foreign tourists, companies forged ahead with their plans to open new facilities.

“It has become a status symbol to own a hotel in Kyoto, which brings such a high brand value,” said an official with the Kyoto branch of Teikoku Databank Ltd. “With companies buying up available lots as soon as they become available, land prices in Kyoto have not decreased much even during the pandemic.”

The Roku Kyoto, operated by the Hilton group near the Kinkakuji temple, opened in September 2021--when a state of emergency was in place in Japan.

The hotel is not cheap, with rooms going for about 100,000 yen ($720) a night. But on weekends now, nearly all 114 rooms are booked.

There were few foreign visitors when the Roku Kyoto first opened its doors, but now roughly half the guests come from abroad.

Even before Japan relaxed its entry restrictions, the Hotel Okura Kyoto Okazaki Bettei opened near Heian Jingu shrine in January.

This past summer, the Blossom Kyoto hotel, run by a group company of Kyushu Railway Co., opened just a subway stop away from Kyoto Station.

And there are few signs the hotel boom is about to slow, with the Hilton group planning to open another luxury hotel in 2024 and Singapore’s Capella Hotels and Resorts planning an opening the following year.

In 2026, the Imperial Hotel will open a new facility in Kyoto, its fourth in Japan and the first new opening in 30 years.

“We expect high demand for luxury hotels, even if COVID-19 is not completely under control,” a representative of the hotel said. “We want to respond to the public’s needs through differentiation of our brand.”

OKINAWA COURTS GUESTS IN OFF SEASONS

Okinawa Prefecture has also become a hotbed for luxury hotel openings over the past few years.

“The lineup of foreign chain hotels in Okinawa only falls behind that in Tokyo and Kyoto,” said Mari Ariki, president of Recruit Lifestyle Okinawa Co., which provides tourism information about Okinawa. “Okinawa can now compete with Asian resort areas because a sufficient number of hotels have emerged to accommodate affluent guests from abroad.”

Like everywhere else, its hotel industry suffered during the pandemic. While visitors to Okinawa exceeded 10 million in fiscal 2018, the COVID-19 health scare reduced that to about 3 million in fiscal 2020 and 2021.

Okinawa prefectural officials are estimating tourist numbers will improve to about 6.1 million this fiscal year.

But Okinawa faces a problem not seen in Hawaii or other Asian resort areas.

Yoshiharu Hoshino, CEO of Hoshino Resorts, explained that tourist numbers between autumn and spring always drop by some 30 percent from the peak summer season.

He believes this trend is the culprit behind the low percentage of regular company employees working in the hospitality sector in Okinawa, along with the lower average income of Okinawa residents.

“It is important to seek out a more equal distribution over the entire year, even if that means reducing the number of guests during the busy season,” Hoshino said.

But some are taking steps to tackle this problem. The Hoshinoya Okinawa hotel, the high-end brand for Hoshino Resorts, has taken steps to attract guests year-round.

Since opening in 2020, the hotel has operated a warm-water outdoor pool, even in winter. It also provides cultural and recreational activities, such as Okinawan folk dances, karate and horseback riding, that can be enjoyed year-round.

“The attractions of Okinawa are not only its blue waters and skies, but the total package that also includes culture and cuisine,” said Hirokazu Sawada, manager of the Hoshinoya Okinawa hotel.

(This article was written by Daisuke Matsuoka and Hironori Kato.)