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Japan has never seen so many tourists flock to the country so quickly before. The historic collapse of the yen, which means tourists with money to spend are seeking cheaper travel experiences, as well as a post-pandemic surge in global tourism, has fueled more interest in the country than ever before. More than 14.5 million people visited the country in the first five months of this year, according to the latest data from the Japan National Tourism Organization. That’s a 70% increase over the same period last year, and on track to surpass 2019’s record of 31 million visitors.
The island nation — renowned for its food, cleanliness and mix of futuristic and traditional experiences — currently seems like a haven for low-cost travel compared to one of the world’s most advanced economies, thanks to exceptional currency exchange rates. The yen has been stuck at a three-decade low in recent months, making everything from an omakase sushi lunch to a premium A5 wagyu steak much more affordable.
Here are six charts showing the unprecedented tourism boom in Japan:
Perpetual motion
Japan welcomed more than 3 million tourists in May for the third consecutive month, the majority of them from South Korea, China and Taiwan. More than one million Americans traveled long-haul from the U.S. in the first five months of the year – up 50% compared to the same period in 2019. Tourist numbers from 19 markets this year – including all Group of Seven countries – broke their May records. Chinese tourists have lagged their global counterparts since the start of the year, although the gap is narrowing. Japan has proven to be the top destination for Chinese tourists this summer.
Japan will receive a record 34 million tourists this year, a year behind the government target of surpassing 2019’s number of visitors, according to an analysis by Bloomberg Intelligence. Prime Minister Fumio Kishida has set a long-term goal of 60 million tourists visiting Japan each year by 2030. In contrast, a lack of foreign purchasing power has discouraged Japanese travelers, and the number of tourists going abroad is still only about 60% of the pre-Covid peak.
A surge in spending
As the number of tourists continues to grow, so does the amount of cash being spent on their trips. Tourist money is being boosted by a weak yen, which has hit its lowest level since 1986, and people are not afraid to loosen their purse strings for bargains on everything from hotels and luxury goods to theme park trips.
Tourists spent a record ¥1.75 trillion in the first quarter of the year, and the figure is expected to rise as the number of Chinese tourists increases. They spend twice as much as the average tourist, according to the Japan Tourism Agency.
Hotel prices
Hotel prices in Japan are rising, but they are still cheaper than their global counterparts. The weak yen and the hugely popular cherry blossom season pushed national hotel prices to a nearly three-decade high in March. The average daily room rate was about ¥20,986 ($136), the highest level since 1997, according to CoStar Group.
While Tokyo’s rates were high, averaging $177 for the year ending March 2024, the city was cheaper than cities like New York, where the average room price was more than $300 per night, or Singapore, where rates top $250.
Demand for flights
More tourists mean more transportation. About 37 million flights are scheduled to take off worldwide this year, according to industry data compiled by BloombergNEF. And one million of those are expected to land in Japan by the end of 2024. It’s not all good news for Japan, as the growing number of tourists is putting a big strain on local transportation and infrastructure.
So, if you are planning a trip soon, you are not alone. But if you are looking to travel cheap, this could be the perfect time to have the most memorable trip of your life.
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