Tokyo: New Hotels?

While normal supply and demand may indicate when there is a shortage of a products or service, usually that means higher prices. Then add in an unusual high demand for a product or service the prices might get even higher, such as the Tokyo 2020 Olympic situation, where it is estimated there might be a 14,000 room shortage during the Olympic period. Tokyo has commented they will build more luxury hotels, to try and overcome the shortage. Prices, it appears, seem to be already out of control. How many tourists or Olympic fans can really afford super high prices for a hotel for a week or even less? What about the need for medium and even more business type hotels instead of luxury hotels to cover the Olympic shortage? As far as what is going to happen after the Olympics is another problem. How many of the new hotels, especially if they are so-called luxury hotels, will able to maintain an occupancy rate that can equate to profitability?  This is a situation that should have been looked at many years ago instead of just the past year. Bringing in luxury cruise ships might lesson the problems slightly, but the problem might still be about price. Again, sometimes organizers seem to think all fans or tourists are rich, or they hope they are. The majority of tourists or fans are not the rich global jet setters, but ordinary tourists who hope to see a little of the Olympics and also experience Japan at the same time. Tokyo needs to figure out to meet the needs of the ordinary tourists and not just the global jet setters, who probably are already set up in luxury hotel situations.



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