A hotel chain in Japan has decided that the only way to tackle its severe labor shortage is to double salaries to unprecedented levels.
Mystays Hotel Management, owned by the Fortress Investment Group fund and the island’s fourth-largest operator, is offering monthly salaries of ¥500,000 ($3,210) for new hires in its accelerated program aimed at training managers for its 151 accommodations throughout Japan.
After laying off staff during the pandemic, many hotels are now struggling to attract staff as a resurgence in footfall overwhelms the hospitality industry. Rising prices and associated wage growth also make it harder for employers to attract workers without offering more attractive salaries. According to Teikoku Databank, more than 60% of hotel operators say their workforce remains below pre-pandemic levels.
