From the snow-covered landscapes in the northernmost prefecture of Hokkaido, to the sunny beaches on the southern island of Okinawa, Japan's incredible geographic diversity offers tourists ample travel choices. A fair share of the roughly 125 million inhabitants of the Japanese archipelago engage in travel, turning the domestic tourism segment into a multi-trillion Japanese yen market that is the main pillar of the travel and tourism industry in Japan. Following a setback during the previous three years, caused by the COVID-19 pandemic, the segment recovered to pre-pandemic levels
in 2023.
A multifaceted industry
Travel and tourism generate demand in various industry subsegments, including in accommodation, transportation, gastronomy, shopping, and entertainment. There are three subsegments when looking at travel for the purpose of trips, which include leisure and recreation, business, and home-coming or visiting of friends. Travel for leisure purposes is the
most common type of trip and generates the most revenue in the industry. Many leisure-related trips are undertaken to neighboring prefectures, making prefectures such as Chiba, Shizuoka, and Kanagawa, all of which are situated around the Tokyo metropolitan area,
popular destinations. Some prefectures, such as Hokkaido, and Okinawa, are considered popular touristic destinations for nature-related leisure trips and can attract many domestic and international travelers annually. Otherwise, cultural centers, such as Tokyo, Osaka, and Kyoto, also comprise highly popular travel destinations, for leisure and business travel alike.
Accommodation and transportation during domestic travel
Domestic travelers typically spend most on accommodation and transportation while traveling. Japan has a well-developed network of accommodations, indicated by the impressive
number of lodging facilities. Even though trips for leisure and recreation were the most common travel type among domestic trips, business hotels were the
lodging facilities with the highest number of overnight stays recorded among all types of accommodations. This indicates that cities are very popular destinations for leisure travel, as business hotels tend to be situated in metropolitan areas.
Public transportation via railway is one of the most commonly used methods of transportation on domestic trips. Japan's public transportation is highly developed and efficient, making this a viable option for the less remote destinations. Recently, and especially after the advent of the COVID-19 pandemic, privately owned cars or rental cars recorded a growth in use, making them the second-most widely used type of transportation for domestic travelers, after railroad vehicles.
Good prospects for domestic travel
Regardless of the type of trip, for many Japanese,
traveling is part of their annual activities. The domestic tourism segment appears to be fairly resilient and can be expected to continue to deliver stable results in the near future. The travel appetite of Japan's native population, paired with the well-developed tourism infrastructure, and a wealth of cultural attractions, and the country’s unique nature, are a good recipe for success.
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