Japan’s tourism industry struggles despite record visitors

Travel & Leisure

Hotel profit margins below pre-pandemic levels as per capita traveler spending dips

Tourists pose for photos at the Sensoji Temple in Tokyo. Visitors to Japan reached a record 42 million people in 2025.  (Photo by Shintaro Ino)

HIROFUMI KANAOKA

January 22, 2026 02:36 JST

TOKYO — Although Japan experienced a record inflow of international visitors last year, the accommodation industry has found it difficult to profit from the booming traffic.