As soaring post-pandemic demand has revealed labor shortages and low efficiency, regional tourism in Japan needs to be reformed to become a more viable industry, a government researcher said on Tuesday.

The government's request in its annual white paper on tourism comes as businesses, who had to cut staff due to mobility restrictions brought on by the coronavirus outbreak, are now witnessing a comeback in tourists. Local economic activity and employment are significantly influenced by tourism.

With effect from October, the government repealed its pandemic-related prohibition on lone, unplanned international travel and unveiled a resident-only national travel discount program.

The Japan Tourism Agency reported that foreign hotel stays in April surpassed 10 million nights for the first time since January 2020, signaling a comeback for the lodging sector. The amount is almost 92 percent of the entire amount for April 2019.

Despite a recovery in the tourism industry, concerns about a labor shortage and an increase in workload are felt to be important.

The hospitality and food services sectors were three times more anxious about staffing than manufacturing firms were, according to the Bank of Japan's Tankan report on the important index used to gauge the confidence of big firms in March.

The topic of salary was also brought up in the white paper.

According to a government poll conducted in 2022, the average pay in the hotel sector was $34,800, far less than the 4.97 million yen average for all businesses.

While wages have increased generally for two years running, they have decreased in the hotel industry.

The government has suggested methods to raise the average spending of each consumer to raise salaries. One suggestion to boost sales is a government-backed additional value program that offers cash for projects like room renovations.

After speaking with 89 tourist attractions, the organization reported that they were able to charge, on average, 54.2 percent more for restored rooms.