Have you heard the word "workcation"? As COVID-19 continues to impact daily life, new work styles have emerged. Workcation is one trend that has gained significant attention, even receiving government endorsement. In July 2020, the Japanese government stated it wants to promote workcation as "a new style of travel and working."
What is Workcation?
Workcation is a portmanteau of "work" and "vacation." It refers to a working style that combines travel or homecoming with job duties. Originally from the United States, workcation allows employees to work remotely from vacation destinations.
Background
The concept emerged around 2000 in the US with the rise of IT, enabling remote work from anywhere. In Japan, the backdrop includes a historically low paid leave utilization rate—just 50% according to a 2018 Expedia survey, the lowest among 19 countries surveyed.
Difference from Remote Work
While remote work allows working outside the office—sometimes limited to home—workcation is less location-restricted. Employees can work from travel destinations or holiday spots, blending leisure with professional duties.
Benefits of Workcation
For Companies
- Promotes paid leave usage: Employees feel less guilt about taking time off when they can handle work during vacation.
- Improves employee retention: Better work-life balance leads to higher job satisfaction and lower turnover.
- Boosts productivity and morale: A study by NTT Data Management Research Institute, JTB, and JAL in Okinawa showed a 20.7% rise in productivity and 37.3% reduction in stress.
For Employees
- Better balance between work and private life
- More family time, especially for long trips
- Refreshment and stress reduction with lasting effects up to 5 days after workcation ends
For Government
- Revitalization of local regions through year-round tourism
- Job creation in hospitality and food service
- Increased tax revenue from economic activity in rural areas
For Travel Businesses
- Flattening of demand peaks across the year
- Reaching working-age travelers who previously could not take extended trips
Challenges of Workcation
- Communication costs: Remote coordination is harder than in-office interaction.
- Labor management difficulties: Managing work hours, workers' compensation, and commuting allowances becomes complex.
- Information security risks: Handling confidential data outside the office increases risk of theft or data leaks.
Workcation Initiatives in Japan
Workcation Municipal Council (WAJ)
Founded November 18, 2019, WAJ comprises about 65 local governments led by Wakayama and Nagano prefectures. It promotes workcation infrastructure and nationwide awareness.
Mitsubishi Estate
Mitsubishi Estate offers dedicated workcation facilities called "WORK×ation Site" in resort areas, equipped with co-working spaces, meeting rooms, and Wi-Fi—making workcation practical for corporate groups.
Healthcare-Integrated Workcation
To address work-life balance concerns, proposals now include yoga, nature walks, and strict after-work relaxation schedules to ensure vacation truly means rest.
Real-World Examples
Wakayama Prefecture
Japan's most active workcation region, with 34 companies and 326 people in 2018 alone. Mitsubishi Estate opened a dedicated workcation facility in Shirahama.
JAL (Japan Airlines)
Pioneer adopter since 2017: 11 users in summer 2017, 78 in 2018, 176 in 2019. JAL added "workcation" as a formal attendance category in 2018.
Impact on Industries
The real estate, hotel, and local food service industries all benefit from workcation-driven increases in year-round demand. Collaboration between government, businesses, and local communities is essential to realizing workcation's full potential.
Conclusion
Workcation combines work-style reform with tourism recovery. As remote work normalizes, workcation offers a promising path to better work-life balance and regional revitalization. Challenges remain, but with coordinated efforts from companies, government, and industry, workcation adoption will continue to grow.
