International guest nights broke the previous record for May with higher growth rate in local areas than urban areas

The latest guest night statistics in Japan in May 2017 (the secondary report), announced by Japan Tourism Agency, finds that guest nights increased by 5.7% year on year to 42.36 million in total, which consisted of 35.85 million guest nights by Japanese travelers (+3.9%) and 6.5 million guest nights by international visitors (+17.3%). Guest nights by international visitors were record-high for May.

The preliminary report for June 2017 finds that guest nights totaled 37.41 million (+1.4%), which comprised 31.26 million guest nights by Japanese travelers (unchanged) and 6.15 million guest nights by international visitors (+9.3%).

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The occupancy rates were 60.3% nationwide in May 2017. The number of prefectures with 80% or higher was 11 for city hotels, four for budget hotels and two for resort hotels. The occupancy rate in Osaka was still high with 79.7%, keeping 87.7% for city hotels, 85.4% for resort hotels and 80.4% for budget hotels.

By region, international guest nights were up 23.4% to 2.58 million in local areas and up 13.7% t0 3.92 million in three major urban areas. The growth rate in local areas was higher than that in three major urban areas, which may represent that the inbound market is decentralized.

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