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Hotel prices heat up before Olympics

TOKYO >> With the Tokyo Olympics and Paralympics looming, many Tokyo accommodation facilities have been raising their room rates by two to four times the usual rate.

As a rush of hotel construction continues in central Tokyo, the Tokyo Organizing Committee of the Olympic and Paralympic Games is canceling some of the rooms it temporarily reserved. Such moves will cause accommodation fees to fluctuate, likely creating a headache for prospective spectators who live far away.

“I’m thinking of going home, without staying the night, after watching the competition,” said a 26-year-old Osaka university worker, who secured tickets to an event at the new National Stadium in Shinjuku Ward.

She plans to invite her parents, who live in Nagano Prefecture. She checked accommodations at central Tokyo business hotels and found that twin room rates were more than 100,000 yen (about $910).

“I paid about 140,000 yen (about $1,275) for the tickets. I can’t afford any more,” she said.

The price hikes began around May, when the first round of lottery tickets were releassed.

A hotel in Minato Ward that usually offers rooms for about 20,000 yen (about $180) doubled its rate, while a capsule hotel in Shinjuku Ward is charging about four times the usual price. An inn in Chuo Ward has about doubled its prices.

Some hotels that have raised their rates are already fully booked; others have more than half of their rooms reserved.

According to the Health, Labor and Welfare Ministry, as of March, there were about 170,000 guest rooms at Tokyo hotels and inns. According to a June survey by the Hoteres magazine on hotels and restaurants, more than 150 hotels are expected to open in Tokyo by next year, adding more than 20,000 rooms.

About 10 million people — both from within the country and abroad — are expected to visit Tokyo for the Games. The organizing committee has temporarily reserved about 46,000 rooms at more than 300 primarily first-class hotels for the International Olympic Committee and other sports organizations from across the globe — resulting in increased concerns over a lack in accommodations.

However, in September the organizing committee began canceling room reservations as they confirmed numbers of attendees from various sports organizations.

Demand for accommodations could drop since the change of location for the marathon from Tokyo to Sapporo. It is a highlight of the Games along with racewalking, for which Japanese athletes are medal contenders.

Many facilities in Tokyo have not yet started accepting reservations, and it is unclear if the price hikes will continue.

The Cerulean Tower Tokyu Hotel in Shibuya Ward has renovated all its rooms in preparation for the Olympics, with some decorated with images of Mount Fuji, appealing to foreign guests. However, it has no plan to raise rates.

“The Games is a chance to let people at home and abroad know about our hotel. To encourage people to visit us again, we will make efforts to improve our services without seeking temporary benefits,” said General Manager Yoshiaki Miyajima.

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