Tourism Japan's domestic tourism stagnates amid foreign travel boom

Japan's tourism industry is experiencing a paradoxical situation. While foreign visitors are flocking to the country in record numbers, domestic travel is declining. This trend can be attributed to shifting preferences towards individual travel, rising costs due to the weak yen and increased foreign tourism, and the post-pandemic slowdown in domestic demand. The domestic tourism industry has also struggled to adapt to these changes, hindering its growth.

Multiple factors are at play. Recreational options have diversified, and the industry has not kept up with a trend toward individual trips and away from group travel. The weak yen and higher travel costs due to the explosion of inbound tourism are also contributing factors. The post-pandemic jump in demand has dropped off as well. [...] But the biggest hurdle for Japan's would-be tourists appears to be the difficulty in obtaining leave from work, which means that domestic trips often do not extend beyond two nights and scheduling of international travel is highly concentrated to certain times of the year. This contrasts with Europe, where lengthy vacations are the norm.

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Hiroyuki Takahashi, head of the Japan Association of Travel Agents, expressed concern about the decreasing number of young people with international travel experience. A 2018 government survey revealed that over half of Japanese teenagers and young adults had no plans to study abroad. This contrasts with significantly higher rates in South Korea and Western countries, where 20% and 30% of young people study abroad. Taking gap years after high school has encouraged international travel among youth in many English-speaking nations.

Japanese officials are exploring ways to encourage young people to travel abroad. One proposal is for local governments to cover passport fees and increase funding for class trips at public schools. These excursions are a traditional Japanese educational experience, especially for upperclassmen. A 2023 survey by Shibuya109 Lab found that young people hesitate to travel abroad because of financial concerns, safety worries, and language barriers.


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We had a couple people over a week ago, I talked about going for a drive from here down past Maizuru to Tottori, Matsue, and Izumo. I commented that that appealed since it's not a touristed part of the country. Nope, they said--foreign tourists are everywhere.

I doubt that the number of tourists along the route you mentioned is anywhere near that of Kyoto or some places in Tokyo or Osaka. I went to Asakusa three weeks ago, and while Nakamise-dori was packed, it wasn't that bad. Yes, they are everywhere, but not in throngs.

On a side note, six years ago, we took precisely the route you described by car—a coastal stretch I'd love to revisit. There were only Japanese tourists in Izumo.

@thomas That's good to hear, and would have been my guess before. Toyooka/kinosaki might get both domestic and foreign tourists, since it's closer to kyoto/osaka, but moving on from there, likely progressive fewer.

Japanese wanderlust seems to be hitting a snooze button, especially for longer trips within the country. Government data reveals a concerning trend - overnight domestic adventures are taking a backseat. This travel slump comes despite a surge in foreign tourists, creating a competitive scramble for reasonably priced stays at popular destinations. Numbers paint a clear picture: the Japan Tourism Agency reports a year-on-year decline in domestic guest stays for almost every month in 2024, with only a meagre 0.3% rise in April offering a glimmer of hope. While some of this slowdown reflects the end of government support programs offered in 2023, experts are voicing concerns that the post-pandemic travel boom might be reaching its end.

Takuto Yasuda of the NLI Research Institute warns that this stagnation will likely be a symptom of a more significant trend, not just a passing phase. Soaring hotel prices are a primary culprit. One Tokyo family, yearning for a summer escape, opted for a gruelling 600-kilometre drive to Awaji Island instead of flying or taking a train. Their motivation? Astronomical lodging costs. A single night's stay for their family of six would have easily surpassed 100,000 JPY (roughly USD 700). "Traveling by car was exhausting," admitted the mother, "but it was the only way we could afford this trip." This family's experience exemplifies the dilemma faced by many Japanese travellers. Soaring hotel prices dampen domestic travel dreams, forcing some to explore alternative, often less comfortable, travel options.

Income and inflation are major reasons why Japanese people fall out of love with travel. Real wages grew on the year for June and July but declined for August. The government's latest consumer price index data shows prices for accommodations are nearly double their 2020 levels, with food and other expenses increasing as well. The rise has been particularly sharp in major cities like Tokyo and Osaka, discouraging travel from outlying areas, where wages are relatively low. "Transportation and lodging are too expensive to go to cities," said a 20-something woman from western Japan's Shimane prefecture. She would often take trips to Osaka and Kyoto a few years ago but now stays within driving distance. In a survey by travel agency JTB about Japanese adults' summer travel plans, 17.6% of respondents saying they would travel in-country cited the ability to drive to their destinations as a factor in choosing them -- one of the top reasons.

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I would expect that some of this is also due to the aging population who would be on fixed incomes and also may have a harder time traveling. With fewer younger adults around to bolster the travel related services and of course with the increased costs, as mentioned in your posts, it must have an impact. I have to say though, the move from group travel to independent travel probably has increased some domestic tourism to places that would not have been on the group tours previously. At least by a little.

I'm not in country but my preference has always been to avoid the tourist traps and explore off the beaten path. I would rather stay at a little mom & pop B&B then a mega hotel. I would rather see the hidden waterfall than the theme park.