Alexandru Arba
Research expert covering Japan
Japan's tourism industry - statistics & facts
2023 was a record-breaking year for Japan's travel and tourism industry in many ways. Despite the industry struggling over the previous three years as a direct result of the COVID-19 pandemic, the industry managed to recover, setting a series of all-time highs. This included a record market value, the highest inbound traveler expenditure, and the largest balance of tourism surplus ever noted. By registering said results, the industry continued in its pre-pandemic growth trajectory. What is the driving force behind this development in Japan’s travel and tourism industry?
The lion's share of tourism demand and expenditure is generated by Japan's sizable native population, with hundreds of millions of domestic trips recorded annually. The domestic tourism segment is mature and saturated, delivering stable results during the past decades (excluding the COVID-19 period).
Inbound tourism is the next-important segment of the travel and tourism industry. It is regarded as a driver of growth, with prospects to contribute substantially to Japan’s economic invigoration in the future. Recently, the high increase in international visitor numbers has led to concerns over excessive tourism in certain places.
Composition and characteristics of the travel and tourism industry in Japan
The market size of Japan's travel and tourism industry is worth tens of trillions of Japanese yen, while at the same time it is creating millions of jobs. It can be understood as a hub industry, that is highly interconnected and consists of segments from various industry sectors, including accommodation, transportation, gastronomy, entertainment, and shopping. Additionally, numerous satellite industries partially or fully depend on tourism, such as outdoor goods manufacturing and retail, or wellness services. Consequently, the travel and tourism industry occupies an important position from a macroeconomic perspective in the Japanese economy.The lion's share of tourism demand and expenditure is generated by Japan's sizable native population, with hundreds of millions of domestic trips recorded annually. The domestic tourism segment is mature and saturated, delivering stable results during the past decades (excluding the COVID-19 period).
Inbound tourism is the next-important segment of the travel and tourism industry. It is regarded as a driver of growth, with prospects to contribute substantially to Japan’s economic invigoration in the future. Recently, the high increase in international visitor numbers has led to concerns over excessive tourism in certain places.
