Are you hearing of more and more people holidaying in Japan? Here's why

Japan is witnessing a tourism boom.

According to Bloomberg, a currency collapse and a surge in global tourism after the COVID-19 pandemic has seen tourists flock to Japan in large numbers.

But what is happening exactly?

Let’s take a closer look:

By the numbers

Around 25 million tourists visited Japan last year, as per Japan Times.

That was the highest number since 2019 – when a record 31 million tourists visited.

Bloomberg quoted data from the Japan National Tourism Organization as saying that over 14.5 million people visited Japan from January to May 2024 alone.

That’s a 70 per cent increase over the same timeframe last year.

If those numbers continue apace, around 34 million tourists will come to Japan – breaking the 2019 record.

May was also the third straight month in which Japan had over three million visitors – most from South Korea, China and Taiwan.

The number of foreign visitors for business and leisure was 3.04 million in May – steady from the level in April, and down slightly from the all-time monthly record in March, data from the JNTO showed.

Till May, over a million Americans had visited Japan – a 50 per cent increase over 2019.

Tourists from 19 nations including the G7 group of US, Canada, Germany, China, Italy, UK and France have visited Japan in record numbers in May.

Prime Minister Fumio Kishida has said that by 2030, he wants Japan to have 60 million tourists per year, as per Bloomberg.

Nikkei Asia quoted Jay Carney, Airbnb’s global head of policy and communications, as saying, “Japan is one of our most popular destinations and is the most popular in the [Asia Pacific] region.”

Weak yen attracts tourists

The weak yen, languishing at a 34-year low against the dollar, is adding fuel to the fire.

Today, a single US dollar is worth around 161 yen.

In 2023, tourists to Japan spent $35.9 billion.

According to Fortune, visitors have already spent a record $10.8 billion in Japan till April.

Nikkei Asia quoted data from the Japan Tourism Agency as showing that that tourist spending per person increased 38.5 per cent in January to March compared to the same period in 2019.

Tourists from Australia, North America and Europe stay in Japan longer (around two weeks) and spend more than people from South Korea and Taiwan.

Tourism is now Japan’s second-largest ‘export’ – behind cars and ahead of electronics.

The pandemic saw tourism to Japan slow to a trickle, but it quickly picked up after Japan loosened its restrictions in 2022.

Japan did away with COVID curbs entirely in 2023.

Chinese travellers, previously the biggest contingent of Japanese tourists, remain about 30 per cent lower than pre-pandemic levels.

But travellers from other markets are picking up the slack, such as Indian visitors who reached a monthly record in May, JNTO data showed.

Dalia Feldman, marketing director for Tourist Japan, said her firm has seen an 11-fold increase in inquiries from India in the past year, while those from the United Arab Emirates are up almost eight fold.

“It appears it is the Japanese cuisine and natural sights that attract them the most," Feldman said. “Most of our Indian and UAE customers will ask to include some more food tours in their itinerary as well as external trips to remote and scenic areas.”

As per Fortune, the spending is set to rise with an influx of Chinese tourists.

The Japan Tourism Agency says Chinese citizens spend twice as much as the average tourist.

Tommy Buchheit, an American on his first trip to Japan, told The Guardian, “Everything is cheap, the service is incredible, and the food is the best you’re going to have, and at a fraction of the price you’d pay in America.”

‘Bucket-list destination’

Some think Japan’s allure is more than just the weak yen.

Jeremy Bek, the global head for Japanese travel platform Rakuten Travel, told Fortune people are looking for picture-perfect locations.

“It’s the Instagram culture, right?” Bek said.

“It’s not about what you eat or what you do. It’s about what people see you eat and do. And Japan is beautiful. There’s so many beautiful things to put on Instagram.”

“Japan has become a bucket-list destination,”Karlÿn de Bruin from the Netherlands agreed.

“I can imagine that local people get fed up, so we try to mind our own business. But you can feel the social media vibe … people dressing up and taking photos in certain ways because it makes good content,” Bruin told The Guardian.

But not everyone is thrilled.

The sheer numbers of tourists has raised concerns of “over tourism” at visitor hot spots.

As per The Guardian, Kyoto, which attracts tourists in droves, is struggling with this phenomenon.

Peter MacIntosh, a Canadian who runs walking tours, said locals are unhappy.

“The problem is that people here want the best of both worlds – to have a quieter life and make money – but it is only going to get worse as more people arrive. Kyoto is becoming a free-for-all,” said MacIntosh.

As per Fortune, Kyoto’s Mayor Koji Matsui won office after running against over tourism.

The mayor of Himeji in western Japan in June floated the idea of charging foreigners three times the standard 1,000 yen fee to enter the city’s famous samurai-era castle, the Asahi newspaper reported.

In explaining new trail fees to curb overcrowding on Japan’s sacred Mt Fuji, Yamanashi prefecture governor Kotaro Nagasaki told reporters the country should focus on attracting “higher spending visitors” over sheer numbers.

The town of Fujikawaguchiko also put up a barrier at a spot famed for its view of Mt Fuji after locals found themselves fed up with tourists littering and breaking the rules.

But Bek said hotels are unlikely to overcharge tourists.

“They don’t want a repeat of the COVID situation,” Bek said.

“If they rely too much on international tourists, and then things get shut down, they’re left without any customers.”

With inputs from agencies