Passport to People Power: Solving Japan's Tourism Staffing Puzzle

Last year marked a major rebound for Japan’s tourism industry, with 36.8 million visitors. The government is aiming to build on this momentum, setting an ambitious target of 60 million inbound tourists by 2030. While this presents significant opportunities, it also brings a range of challenges—particularly against the backdrop of Japan’s demographic decline. From your perspective, how do you see the tourism industry evolving in the coming years?

The manpower shortage in Japan’s hospitality industry is partly due to the country’s declining population, but there are several other contributing factors. During the COVID-19 pandemic, approximately 150,000 people left the hospitality sector as the industry was severely impacted. Even after the pandemic, many of those workers have not returned.

I recall visiting Cambodia in 2022 during the pandemic, when there were virtually no tourists. Yet, tour guides were still out working. I asked one of them why they continued despite having no customers, and they told me it was because they found deep personal satisfaction in their work. Helping international travelers gave them a sense of purpose and happiness. It’s a highly rewarding profession. Even though tour guides struggled during that period, they believed that with patience and persistence, recovery would eventually come—and things would improve.

In Japan, this sense of fulfillment is also a strong motivator for people working in hospitality. However, the financial compensation simply doesn’t match the emotional rewards. That’s the core reason many workers are not returning: the pay isn’t competitive compared to other industries.

Another issue lies in how hospitality businesses are structured. Many hotels and traditional ryokan are owned or operated by real estate developers who view these properties primarily as assets rather than service-based businesses. As a result, they tend to undervalue hospitality itself, often cutting back on investments in staff and services. This has contributed to both a decline in wages and a deterioration in the overall quality of service.

You mentioned the impact of COVID-19 and the exodus from the hospitality sector, largely due to poor financial compensation. The Japanese government has taken steps to address this issue through various initiatives and regulatory measures. In your view, what additional actions should the government—and companies like yours—implement to help solve this growing labor shortage in the hospitality industry?

As you mentioned, the Japanese government is now increasingly aware of the need to make the hospitality industry more sustainable. Just last year, I heard of a hospitality company offering JPY 300,000 per month to new graduates—a remarkably high salary for someone just entering the field. While this made headlines, it’s not yet representative of the broader industry.

What’s truly needed now is stronger collaboration between the industry and the government. By working together, we can improve working conditions across the board and make hospitality a more attractive and viable career path. That’s the only way we’ll be able to draw more talent into the sector and ensure its long-term health.

One approach companies are using to address the labor shortage is dispatching staff from overseas. Your company is a market leader in this space, offering such services. From your perspective, what are the key differentiators that give you a competitive edge as a specialized human resource dispatch company for the tourism industry?

We originally launched our platform to connect individuals seeking part-time work in the resort industry with businesses in need of staff—and this idea was rooted in my own personal experiences. In my 20s, I lived abroad and spent time in the U.S., where I learned many valuable life lessons. One of the biggest takeaways was that stepping outside your comfort zone and changing your environment can spark deep personal growth. It helps you gain perspective—for example, realizing how unique your own culture is compared to others, or even something as simple as appreciating your family more. Being in unfamiliar surroundings encourages self-reflection and builds emotional resilience, which in turn improves decision-making and gives your life a stronger sense of purpose. I believe the more diverse experiences you accumulate, the more direction and momentum you gain as a person.

I once read that there are three key factors that can change a person: changing your environment, changing your community or circle of friends, and changing how you spend your time. That really resonated with me. It inspired me to create opportunities for young people to experience transformative moments through resort work—experiences that can serve as a personal turning point.

Many people initially apply just for the fun or to earn a bit of money. But it’s fascinating to watch how their mindset evolves during their time at the resort. Some start off thinking the work is too difficult and consider quitting. But after a few months, their expressions change—they begin to shine with a newfound confidence. Some even develop a desire to go abroad, whether to work or travel. Creating these life-changing opportunities—helping people grow through challenge and discovery—is at the heart of what we do.

While there are growing opportunities for foreign workers to come to Japan for employment, the transition often comes with significant challenges. How does your platform support foreign hires in integrating into Japanese society and adapting to their new environment?

First and foremost, it’s important that Japan remains a destination of choice for foreigners seeking work. Today, there are many attractive alternatives—such as Korea, the U.S., and Europe. In the past, Japan was known for offering relatively high wages, but that’s no longer a given. As such, it’s crucial to make the Japanese work environment more appealing to international workers.

Among those who do choose Japan, many are drawn by the legacy of the country’s post-WWII economic growth, as well as the global influence of Japanese animation and culture. This is why it’s essential not only to promote the appeal of working in Japan, but also to provide comprehensive support to ensure that foreign workers feel comfortable and welcomed in their new roles.

Our platform offers employment opportunities in regional resort areas, which are often more conservative and may not be as accustomed to hosting foreign staff. That’s why we believe it’s critical to foster a mindset shift—both within the local community and among employers. Without that change, foreign workers may struggle to integrate and instead cluster only with others from the same nationality, which limits the potential for true cultural exchange and connection.

To help address this, we provide a range of support services, including personalized consultations and a 24/7 support line, ensuring that foreign hires have the assistance they need to adapt and thrive in their new environment.

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Your company has established numerous partnerships with foreign educational institutions to attract young talent to Japan. Could you tell us more about your strategy for forming partnerships and signing memorandums of understanding (MOUs) with Southeast Asian universities? Which countries do you see as offering the strongest potential for labor dispatch to Japan?

We take a multi-faceted approach to building human resource networks for Japanese companies across Southeast Asia. Currently, we have established partnerships in the Philippines, Indonesia, and Nepal. In Nepal, for example, we’ve signed a memorandum of understanding with a hospitality-focused educational institution. In Indonesia, we work closely with a local prefecture that offers Japanese language classes, helping to create a smooth transition pathway from Indonesia to Japan.

Within our company, we have a dedicated Global Networking Department that focuses specifically on these international partnerships. This team collaborates closely with the Japanese Accommodation Association, working to raise awareness about job opportunities in Japan and support the flow of skilled labor from abroad.

Your company is active on both the front-end and back-end of operations. Focusing on the front-end in particular, how do you see technology evolving to enhance your matchmaking between Japanese companies and recruits? Are there specific technologies you’re prioritizing for integration or improvement?

Our business model is quite unique compared to typical job-seeking platforms. On most conventional platforms, the information is generally limited to basics like job location, wages, and required skills. In our case, however, we’re dealing with resort placements—so accommodation becomes a critical part of the job offering. Staff are required to live on-site, and the type of housing—whether shared or private rooms—can significantly impact their decision.

Previously, this kind of information was vague or inconsistently presented. So we took the initiative to digitize it, providing job seekers with a much clearer picture of what their working and living environment would look like at each resort. This transparency helps candidates make better-informed decisions and feel more confident about the opportunities they pursue.

The technology we’ve developed isn’t a one-size-fits-all solution—it’s highly specialized and tailored to the hospitality and resort sector. Over the past 20 years, we’ve accumulated a deep database and a wealth of experience, making our platform uniquely equipped to handle the nuances of this industry.

Have you encountered situations where foreign workers come to Japan, work for a few years, and then bring their families over? If so, how do you accommodate or support these workers and their families in that kind of scenario?

Under Japan’s specialized worker visa system, it is possible for foreign workers to bring their families. However, within the hospitality industry—and in our company specifically—we haven’t had any such cases yet. That said, we recognize that family accommodation becomes increasingly important for those looking to settle in Japan long term, and it's something we’re actively considering for the future.

In terms of housing, some resorts already have dormitories where staff can stay. Additionally, many companies are exploring the use of vacant homes, particularly in rural areas across Japan. These regions have a large number of unoccupied houses, which presents an opportunity to repurpose existing structures rather than building entirely new accommodations from scratch. This could offer a practical solution for supporting long-term settlement, including housing for families.

Dive’s initial public offering in March 2024 marked a significant milestone for the company. With that in mind, how important are foreign investors to your overall strategy and future growth?

Going public was not just a financial milestone—it also symbolized our acceptance of greater social responsibility. It reflects our long-term commitment to sustainable growth through collaboration with local companies and governments. But there was also a deeper motivation behind our decision to list the company.

During the COVID-19 pandemic, our sales dropped by around 80%. It was a devastating time for us. Despite the hardship, our team endured and stayed together, navigating the crisis with resilience. Going public was our way of showing that the path we chose—sticking together and rebuilding—was the right one. It’s a statement of confidence in our direction and values.

Both domestic and international investors have shown strong interest in Japan’s tourism industry, which is encouraging. However, we recognize that the awareness of our company—especially among overseas investors—still has room to grow. Strengthening that recognition is now one of our key priorities.

One of your post-COVID strategies has been the diversification of your business model—from a purely B2B focus to also include B2C. Your B2C venture centers around glamping, with an emphasis on promoting lesser-known destinations. Could you tell us more about your strategy for this side of the business and how you plan to grow it moving forward?

All of our diversification efforts are grounded in our firsthand experiences. I’ve personally traveled throughout Japan’s regional areas and have been struck by how rich and attractive the local cultures are. As an outsider, I was able to see opportunities that may be overlooked, and that perspective has been a driving force behind our expansion into B2C. This approach has also helped us build stronger relationships with local communities and destinations.

Historically, we were a very manpower-oriented company. Whenever a new project came up, our instinct was to hire new staff and assemble a large team to push it forward. However, the COVID-19 pandemic gave us a chance to reflect deeply on our approach to corporate management. It taught us the importance of building a more strategic, scalable model—one that doesn’t rely solely on increasing headcount, but instead focuses on smarter, more sustainable growth.

Could you walk us through how your business operates in terms of services and automation? How do these elements contribute to your overall business model?

Glamping was not widely known in Japan until recently. COVID-19 served as a turning point, triggering a glamping boom across the country. While the initial boom has since cooled, glamping has evolved into more of an established part of Japanese leisure culture.

The idea behind our glamping business was to spotlight lesser-known tourist destinations. However, promoting these areas effectively requires having accommodation nearby. Building a hotel would cost billions of yen, and given current societal shifts, such a large investment may not yield the returns we’d hope for.

Glamping, on the other hand, allows us to operate with much lower initial investment. It gives us the flexibility to test the waters, adjust based on demand, and stay agile in a changing market. That level of adaptability is a key strength in our business model.

Is this mainly for domestic customers, or are you also targeting inbound tourists?

Right now, just domestic.

In your view, how will cutting-edge technologies like IoT, AI, and automation transform the hospitality industry? What kind of impact do you foresee these innovations having on operations and guest experiences?

We’re seeing a growing adoption of technology across the hospitality industry, and the government is even offering subsidies to support the development and implementation of new systems. However, about 60% of hotels and inns in Japan are operated by small and medium-sized enterprises (SMEs). In many ryokan, for example, it’s often the okami-san—the female manager—who handles everything from finances and customer service to overall operations.

For these operators, implementing new technologies can be overwhelming. Many of them aren’t familiar with how to integrate digital tools into their daily routines, and the burden of doing so can be quite heavy. We see this gap not as a hurdle, but as a business opportunity.

Rather than relying on online travel agencies (OTAs), which often charge high commission fees, we aim to help these businesses attract customers directly. We believe there’s a strong opportunity to build a new business segment focused on supporting Japanese SMEs—offering them the tools and support they need to modernize without being overwhelmed.

Let’s imagine we’re sitting down for this interview again in 2032. What goals or dreams do you hope to have accomplished by then?

Japan is a uniquely fascinating country. Despite its small landmass, each region has its own distinct identity, supported by a robust transportation infrastructure. We’re also blessed with four beautiful seasons and a globally renowned food culture. These characteristics make Japan especially well-suited for tourism—and they highlight the need for strong support systems within the industry.

Tourism is one of the few sectors in Japan with significant growth potential, and we see it as our mission to provide meaningful solutions that help it thrive. As we continue delivering human resource solutions to companies across the tourism space, our goal by 2032 is to evolve into a comprehensive service provider for the industry as a whole—one that supports its sustainability, innovation, and global competitiveness.

For more information, please visit their website at: https://dive.design/