Okinawa hotel occupancy rate, revenues increasing
A report from the Okinawa Development Finance Corporation, published on Aug. 26, says the occupancy rate of 71 major hotels in Okinawa in fiscal 2015 increased from the year before.
In the report, the hotels were divided into three categories – hotels in cities, hotels in resort areas, and limited service hotels. The occupancy rate in all three categories was higher than a year before. Not only the average daily rate (ADR) but also their revenue per available room (RevPAR) increased significantly.
The occupancy rate of hotels in big cities was 82.4%, 2.2% higher than a year before. Resort area hotels had an occupancy rate of 79.4%, an increase of 1.1%, while 82.2 % of rooms in limited service hotels were occupied on average that is 1.9% increase. The ADR of hotels in cities was ¥12,157, an 11.7% increase. ADR at resort hotels was ¥22,721, 8.1% higher, and in limited service hotels ¥7,566 that is 12.9% higher. 68 hotels out of 71 raised their rates, and the occupancy rate in 43 of them rose as well.
Officials at the Okinawa Development Finance Corporation pointed out that there was a trend to emphasize rising ADR with the backing of high RevPAR rate. They foresee that the number of foreign tourists will increase, and the demand for accommodation in Okinawa will remain high, as the 2020 Olympic Games in Tokyo nears.
At the same time, they are concerned about decreasing services caused by a serious shortage of workforce that could lead to a diminishing profits and losing customers.