Japan’s tourism is increasing much faster than hotel room growth, with projected annual foreign visitor arrivals to touch 40 million a year ahead of the 2020 Tokyo Olympic Games.

Japan may be forced to accommodate Olympics attendees in cruise ships due to the lack of hotel space, as was seen at the Sochi Winter Olympics and last summer’s games in Rio. The room shortage has also led to the government legalising the use of home sharing platforms such as Airbnb in response to demand.

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