Abstract
This study evaluated the efficiency of Japanese ryokans during the period 2005–2012. The number of ryokans has been decreasing due to the inability of operators to respond to structural changes in demand. Thus, we investigated the cause of that decrease. Based on literature examining efficiency and productivity applied to tourism and hospitality, ryokans are analyzed both at the size and regional levels. The findings confirmed quantitatively the empirical literature and showed that large-scale ryokans are relatively more efficient than smaller operations, which is commonly observed in the accommodation industry. Managerial recommendations were derived from the results for small ryokans.
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