Japan tourism success is a source of pride for the government. However, it also generates anxiety -and even anger- among locals. It consequently forces authorities to adjust the tourism strategy.
The government is now implementing new rules and restrictions on some of the advantages provided to international travelers. All in a bid to appease locals who feel increasingly threatened by over-tourism.
More tourists due to weak yen and additional flights
For the first time, Japan indeed welcomed more international visitors than Thailand. The kingdom welcomed 16.69 million international visitors from January to June 2025, a 6% decline over the same period of 2024. On the other hand, Japan accommodated 21.5 million foreign tourists in the first half of 2025. This represented a robust 21% increase year-on-year.
Japan‘s success is first due to its own strength in terms of culture, heritage, gastronomy and landscapes. But it received an invaluable boost from a weakening Yen. On August 11, 2025, 1,000 yen was equivalent to 6.78 US$. In August 2023, it was valued at 6.90 US$, at 7.53 US$ in August 2022 and 9.04 US$ in 2021. This represents a drop of 33.3% during that period. The currency lost even more valued to the euro, the Swiss franc or the Pound as well as with other Asian currencies.
Japan tourism success relies also on the multiplication of flights, particularly from Asian low-cost carriers. All these factors are now behind overcrowded destinations in straining infrastructure and fragile sites.
Tax-free immediate rebate to disappear while dual pricing implemented at popular sites
Japan is consequently rolling out sweeping changes to how it welcomes international visitors. The aim is to ease pressure on its cultural treasures and natural landscapes.
By late 2026, tourists will face new rules covering tax-free shopping, attraction pricing, while daily visitor caps are targeting popular sites. In fiscal year 2028, a new pre-approval arrivals system will enter in force for the visitors of 71 visa-exempted nations.
Officials say the measures—part preservation effort, part crowd-control strategy—are designed to safeguard the country’s heritage while keeping tourism sustainable.
Tax-Free Shopping Revamp
Starting November 1, 2026, Japan will end immediate in-store tax exemptions for tourists. Instead, visitors will pay consumption tax at the register and claim refunds at airport counters upon departure. The government says the change will streamline procedures and curb misuse of the current system.
The shift comes as tax-free sales has driven shoppers from mainland China, Malaysia or Thailand. These kind of travelers seem incompatible with Japan’s search for a more discerning kind of travelers coming to enjoy Japan culture. With travelers facing higher upfront costs -and getting a refund once home, authorities hope to take pressure from some areas.
Dual Pricing Becomes Standard
Japan formalized a dual pricing system across museums, temples, ski resorts, and other attractions. Since July, the country is charging foreign visitors more than locals. While some venues already do this informally, the new policy will be uniform nationwide. Revenue from the higher fees will go toward maintenance and upgrades.
It might also take pressure from some sites as the price to visit will be higher. The dual pricing system affects now certain sites overwhelmed by tourists’ flows. Prices for foreign travelers are up by 30% to 100% in some cases. Caps are also in place in some of the country’s most visited sites such as Mount Fuji.
Travel agents are advised to check on new prices and possible caps to inform their clients before traveling.
Visa Pre-Approval for 71 Countries
By fiscal year 2028, citizens of 71 currently visa-exempt nations—including the US, UK, Australia, and most of Europe—will need electronic travel authorization through the Japan Electronic System for Travel Authorization (JESTA). Applications will be submitted online before arrival, similar to systems used in the US and Europe. Preparations begin from this year.
Japan’s tourism overhaul signals a shift toward long-term stewardship over short-term gains. The changes may add costs and steps for travelers. However, officials insist they will help ensure the country’s iconic sites remain vibrant and accessible for generations.
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