From Hokkaido’s pristine powder-snow peaks to the neon-lit drinking warrens of downtown Osaka, inbound tourists are flocking to Japan in record numbers. Hoteliers nationwide are making a roaring trade, but the boom is not without its problems. Some areas are struggling to cope with all the attention. Others are still waiting for a piece of the pie.
Powder snow draws a cosmopolitan crowd
Tourists love the snow in Hakuba, Nagano Prefecture.
Hakuba, a snowy village in central Japan, is positively buzzing at this time of year. The slopes are packed with skiers and snowboarders from overseas. Bus services are in full swing, and hotels are thriving.
Taxi firms are also cashing in. One company official says reservations can hit 300 per day. Some overseas guests even travel directly from Tokyo’s airports, racking up a one-way fare of more than 1,300 dollars.
The good times extend far beyond Hakuba. The Japan National Tourism Organization estimated earlier this year that more than 36.8 million foreign visitors traveled to the country in 2024. And more recent statistics show overnight hotel stays topped 160 million—up 38 percent from 2023.
Weaker yen makes Japan a must-visit
Overseas tourists are seen at a hotel reception in Tokyo’s Shinjuku Ward.
The record-breaking numbers are largely being driven by the weaker yen, which makes Japan more affordable for more overseas travelers. Social media has also played a role, with so-called “influencers” helping to raise the country’s appeal.
Some areas close to breaking point
Mt. Fuji is packed with both domestic and foreign tourists.
That’s all well and good for areas that can cope, and not so much for others. Officials say overtourism is a problem, and they’re wringing their hands over how to keep the boom sustainable.
Mount Fuji is a case in point. Local authorities introduced a series of measures, such as tollgates, to deal with the rise in footfall.
A man imitates an iconic billboard in central Osaka.
Tourism agency officials say about half of all overseas arrivals stay in Japan’s three major metropolitan zones — Greater Tokyo, Osaka-Kyoto, and Aichi Prefecture, which is home to Nagoya.
The Gassho-style houses in Shirakawa-go are a big hit with tourists.
Some further-flung destinations, like Shirakawa-go in Gifu Prefecture, are also popular. The town is a UNESCO World Heritage Site, and the prestige is paying off.
But other regional areas are missing out. Sakanaka Yayoi, a senior economist at Mizuho Research & Technologies, says access to rural destinations must be improved. “Simply building hotels won’t work without investment in local transportation,” she says.
Mizuho Research & Technologies Senior Economist Sakanaka Yayoi
And spare a thought for Japan’s domestic tourists. The weak yen is denting their spending power, and demand from overseas has pushed up the price of hotels and other holiday expenses.
Expert says focus on quality, not quantity
Japan’s government aims to welcome 60 million overseas visitors by 2030. Combined, they have the potential to spend as much as 15 trillion yen, or over 100 billion dollars, per year.
Tourists pose for a period-style picture at Matsumoto Castle, Nagano Prefecture.
Sakanaka says the focus should be less on volume, and more on attracting tourists with deeper pockets.
She points to “high-value guests” who spend more than 1 million yen, or over 6,500 dollars, during their stay. They already account for 10 percent of foreign tourist spending, and they’re expected to contribute more to regional economies.
Tottori Prefecture is said to have lots of untapped potential as a travel destination.
Some companies are taking note. One hotel chain plans to build an ultra-luxury hotel in the western prefecture of Tottori. Competition is low, and officials are keen to capitalize on the area’s otherworldly sand dunes.
Hakuba is becoming popular for more than just the ski slopes.
And back in Hakuba, one resort operator plans to attract tourists who don’t even want to hit the slopes, especially from Southeast Asia. Alternative activities include pizza-making classes and toasted treats around a campfire.
Reinvesting to benefit more regions
Sakanaka suggests Japan’s tourism boom has the potential to spread even further, with some clever thinking.
“Profits from foreign tourists should be reinvested to boost rural and unvisited areas,” she says. “And that should help to create an industry that satisfies both visitors and residents alike.”
AloJapan.com