On assignment appraisal, I visited Kaike Onsen (Hot Spring) early July. the Kaike Onsen is  the largest hot spring resort in the * San’in region. Same as other sightseeing resorts in Japan, COVID-19 gives serious damage to this hot spring resort. I consider that current situation of Kaike Onsen shows what happens in Japanese tourist resort.

Outline of Kaike Onsen

Kaike Onsen has good access to Yonago airport where direct flight from Seoul, Hong Kong and Shanghai (from Jan 2020) fly into. It located in the center of the San’in region (southern west coastal area richly endowed with nature) It is the best base of sightseeing to surrounding tourist destination such as Izumo Shrine (together with Ise Shrine, it is quiet important shrine in Japanese traditional religion), Mt. Daisen National Park etc. Also, Tottori prefecture is a treasure house of fresh foods from the ocean, the mountains and villages. In Kaike Onsen we can enjoy gourmet foods (especially Matsuba Crab and Wagyu beef are famous).

Kaike Onsen – Number of Hotel Guest Trend

Kaike Onsen was opened in 1900. From pre-world warⅡperiod through the 1970’s, it was a nightlife hot-spring resort (there were many special bathhouses) targeting male only group tourists. In 1981, the first triathlon event in Japan was held there. Image of Kaike Onsen has been turning into a healthy, family oriented and nature friendly hot spring resort.

The number of hotel guest peaked at 740,000 in 1993 – just before collapse of Japanese bubble economy. After that, due to prolonged economic recession and change of traveling style (from group tour sponsored by company to individual/family travel), the number decreased. Recently, it hovers around 400,000. As mentioned above, Kaike Onsen is well established hot spring resort located at border between Tottori and Shimane prefecture (center of San’in region). It is often set in tourist route visiting Izumo (homeland of Japanese Gods) and Mt.Daisen (#3 popular mountain in Japan). Also, it has good access from Yonago airport where direct flights from Seoul, Hong Kong and Shanghai fly into. Before the pandemic, number of visitors was projected to jump toward 2020 Tokyo Olympic Games.

COVID-19 gave Serious Damage

This promising picture was completely changed due to rapid spread of COVID-19.
Below chart shows number of hotel guest comparison 2020 vs 2019.

As COVID-19 revealed, the number started to decrease from March. In comparison with the previous year, April was ▲39.8%, May was ▲94.8%. All hotels were shut down in June.

It impacts seriously business of restaurants, bars and night clubs neighboring hotels.

From July 1^st, hotels start operation gradually. However, 1. In accordance with ‘New Mode of Life’ recommended by Japanese government, hotels are obliged to impose a limitation of number of guests.
2. All summer events (festival, fireworks event etc) are cancelled. 3. Inbound tourist which composed 7 – 8% of hotel guest can not come back for a while.
It takes time that number of hotel guest will recover at the level of 2019. Difficult business situation of hotels will continue for 2 -3 years ahead.

The most deluxe hotel ‘Kaike Yugetsu’ closed temporarily during June 2020.

https://kaike-yugetsu.jp/  ← Web Site of ‘Kaike Yugetsu’

Crushed night club. Most of restaurant and bars went bankrupt.