by Mia Taylor
Last updated: 2:55 PM ET, Tue August 5, 2025
Japan continues to be the darling of the travel world.
The country is on track to surpass a record-breaking 40 million international visitors by the end of 2025, according to a new analysis by Tourist Japan, one of the country’s top tour operators.
More than 28.5 million travelers arrived in Japan during the first half of the year alone, marking a tremendous resurgence for the country. For just the month of June, the Japan National Tourism Organization (JNTO) reported 3.3 million arrivals, marking the sixth consecutive month where monthly arrivals exceeded the 3 million mark.
These types of numbers should hardly come as a surprise, really. Japan has been attracting record numbers of tourists for at least a year now and the country is top of mind this year for many Americans, particularly family travelers. But what’s fueling Japan’s immense popularity at this specific moment in time? Here’s a closer look.
What’s driving the boom?
Tourist Japan says the country’s tourism surge can be attributed to a combination of global events, favorable exchange rates, and renewed enthusiasm for more immersive and experiential travel experiences (rather then simply ticking items off a bucket list.)
In addition, World Expo 2025 happens to be taking place in Osaka and it began back in April. This too, has significantly boosted regional and national tourism.
“We’re seeing unprecedented demand across all segments, from budget travelers and solo adventurers to families and high-end luxury clients,” Ben Julius, founder, Tourist Japan, said in a statement. “Japan has reasserted itself as a top-tier travel destination, with something for everyone.”
Some of the additional highlights from the newly released Tourist Japan analysis include:
China leads the way as Japan’s largest inbound market to date with 797,900 visitors – that’s a 23.6 percent year-over-year increase.South Korea has been the second largest source market for Japan with 729,800 visitors – an increase of 21.6 percent YoY.Record high levels of visitors were also reported from the United States, Canada, Taiwan, and Singapore for June arrivals.Young solo travelers (aged 18-28) account for more than 70 percent of Japan Budget Tour Package customers.Family travel is on the rise, drawn by cultural sites, family-friendly destinations, and theme parks.There is a visible increase in Muslim travelers from Southeast Asia and
the Middle East, prompting a greater demand for halal-friendly and
inclusive services.
Evolving travel preferences
As already mentioned, Japan’s immense appeal is
fueled, at least in part, by the growing demand among travelers for experiential,
culturally immersive travel over traditional sightseeing, says the new
report.
With its tea ceremonies, Buddhist temples, anime and manga pop culture scene, Geisha history, not to mention Ninjas, Japan offers these types of opportunities in spades. Wellness retreats and countryside explorations offer still more options for a memorable, immersive visit.
Luxury travel is another growing
segment in Japan, says the report, with high-end travelers seeking exclusive,
tailor-made services that combine modern comfort with authentic Japanese
hospitality.
Spending and economic impact
Along with the non-stop wave of tourists comes increased revenue for Japan. Foreign
tourists spent more than $32.2 billion during the first quarter of 2025
alone, representing a 23 percent increase from the same period in
2024.
Some of the top spending categories include shopping,
accommodation, and dining, suggesting longer stays and higher per-trip
spending.
Looking ahead, this type of momentum and spending is expected to remain strong thanks to upcoming cultural events like the Setouchi Triennale 2025
underway and the World Expo continuing through October.
At the same time however, there have been reports that some of the factors that are making Japan so financially appealing may soon be changing. In July, for instance, the country was set to implement a two tier pricing policy at major tourist attractions. That plan includes charging visitors more for attractions and venues then locals pay.
In addition, the value of the U.S. dollar has been plummeting under the Trump Administration, which means it will be not quite as powerful against the Yen. The value of teh dollar began to tumble earlier this summer compared to other currencies and ultimately
posted its worst first half year in more than 50 years back in July, according to the
ICE U.S. Dollar Index, a barometer that measures the value of U.S.
currency against six other currencies.
Meanwhile, Japan has also been working to manage overtourism, an effort that has included implementing new regulations on
Mount Fuji climbing and promoting lesser-known destinations, in an attempt preserve Japan’s natural and cultural heritage, while still accommodating the
growing demand.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
AloJapan.com