Japan experienced an unprecedented surge in tourism in 2024, welcoming a record-breaking 36.87 million foreign visitors, marking a 47.1% increase from the previous year and surpassing the pre-pandemic record of 31.88 million set in 2019, according to preliminary data from the Japan National Tourism Organization (JNTO) reported by News China. The rise was fueled by a weaker yen and the resumption of flight routes following the COVID-19 pandemic.
The consumption by foreign visitors reached an estimated 8.14 trillion yen (approximately $52 billion), a 53.4% increase from the previous year, attributed to the weaker yen and increased accommodation costs, as reported by the Asahi Shimbun. The spending marked the highest figure ever recorded for a calendar year in Japan, with tourists allocating most of their expenditures to accommodation, shopping, and other expenses.
South Korea and China were major contributors to the tourism boom. South Korea sent approximately 8.81 million tourists in 2024, while China sent about 6.98 million visitors, accounting for 18.9% of all tourists to Japan last year, according to Asia Economy. The weak Japanese yen, which decreased by 10% against the US dollar in 2024 and about 30% since 2020, made dining, transport, and luxury shopping much more affordable for inbound visitors, contributing to Japan's tourism success, as reported by Robb Report.
Popular tourist destinations, including Tokyo, Kyoto, and Osaka, are experiencing overcrowding, particularly during peak seasons like cherry blossom season, according to The Economic Times. The influx of visitors has raised concerns about the impact on local communities and the overall visitor experience. Local residents and businesses have expressed concerns about the strain on infrastructure and resources.
"The problem of over-tourism is becoming a serious issue in places such as Kyoto," said Harumi Taguchi, a principal economist at S&P Global Market Intelligence, according to Robb Report. In response, the city of Kyoto announced plans to increase hotel accommodation taxes to a maximum of 10,000 Japanese yen per person per night, nearly ten times the current cap, to achieve sustainable tourism.
The Japanese government is aiming to diversify the flow of tourists beyond major cities to promote lesser-known regions of Japan. Efforts are underway to improve access to regional airports and introduce new experiences related to local culture and traditions, fostering more regional tourism, according to China Daily. These efforts include urging foreign visitors to travel during off-peak times, explore lesser-known destinations, and adhere to local customs.
To address labor shortages exacerbated by the aging population and declining birthrate, Japan is exploring automation technologies to support its tourism industry, including automated check-ins and unmanned food services, as reported by Travel And Tour World. The government is encouraging businesses in the tourism sector to adopt these technologies to ensure sustainable growth without overburdening the workforce. Improved efficiency makes Japan even more appealing for international tourists.
The Japanese government has set targets to further boost tourism. It aims to attract 60 million inbound visitors each year by 2030 and generate 15 trillion yen ($96 billion) in tourism spending,. "The 60 million target seems quite ambitious. But if we work together with the private sector, I believe we can achieve it," said Haraikawa Naoya, the Japan Tourism Agency Commissioner, according to NHK World.
Tourism spending in Japan has now surpassed major exports like steel and semiconductor manufacturing equipment, indicating its importance to Japan's overall economic landscape. The surge in tourism has bolstered industries such as accommodations, retail, and dining.
However, the rapid growth has also led to challenges related to overtourism. In Kyoto, residents are particularly affected by the influx of tourists. Some tourists have been noted for inappropriate behavior, such as secretly photographing geisha without permission.
In the Gion district of Kyoto, travelers have been banned from certain narrow private streets to prevent overcrowding and harassment of geishas, as reported by The Economic Times. Additionally, the city of Himeji is considering raising prices to its castle for foreign visitors to control the flow of tourists.
The article was written with the assistance of a news analysis system.