Japan is experiencing an unprecedented influx of tourists, fueled by a historically weak yen and a global resurgence in travel post-pandemic. The Japan National Tourism Organisation reports over 14.5 million visitors in the first five months of this year alone, marking a 70% increase from last year and set to surpass the record 31 million visitors in 2019.
Japan, a country that seamlessly blends modernity with tradition, is a famous tourist attraction. However, due to favourable currency exchange rates, Japan is becoming budget-friendly for tourists. For instance, Japan can offer luxury experiences like omakase sushi and A5 wagyu steak at surprisingly affordable prices.
With the influx of tourism and the weakening of the yen, many foreigners and locals have sought the opportunity to invest in prestigious homes to experience Japan's rich cultural and natural landscape. Here at Uchi, we exclusively offer premium and affordable properties.
Six points to understand about Japan's booming influx of tourists:
Record number of visitors
For the third consecutive year in May, Japan recorded 3 million visitors, predominantly from South Korea, China, and Taiwan. Americans also surged, with a 50% increase compared to 2019 figures.
Market Trends
In May, tourist records were broken in 19 markets, including all G-7 countries. China leads the way in summer bookings, reaffirming Japan's popularity among Chinese tourists.
Projected growth
According to the Bloomberg Intelligence analysis, Japan is on track to host a record 34 million visitors this year, exceeding government targets and setting the stage for that 60 million annual visitors target by 2030. This promising projection underscores the potential for significant and sustained growth in Japan's tourism industry.
Spending spree
The unprecedented influx of tourists significantly boosted Japan's tourism industry and economy. Tourists have made a substantial contribution, spending ¥1.75 trillion in the first quarter alone. Notably, Chinese tourists, known for their higher spending, are a crucial driver of this economic surge.
Hotel prices
While prices have risen, they are still cheaper than many popular global destinations and deliver real value to tourists. Although the spring season lifted hotel prices to a near-three-decade high in March, the average room rate is ¥20,986 ($136), the highest level since 1997, according to CoStar Group. While Tokyo's average room rate is more expensive, ¥28,566 ($177) per night, it is notably lower than rates in destinations like New York, London, Paris or Singapore.
Transportation impact
The influx of tourists has significantly strained local infrastructure despite enhancing flight demand and global connectivity. This impact underscores the need for continuous development and adaptation in the travel industry to meet the growing demand.
