Japan’s tourism industry is experiencing record-breaking numbers in terms of visitor arrivals and spending, with significant growth seen in the first nine months of 2024. Foreign visitor spending surpassed the previous year’s record, reaching JPY 5.8 trillion ($39 billion) between January and September. The number of foreign tourist arrivals also reached nearly 27 million by the end of September, with a peak of 3 million visitors in July alone. The World Travel and Tourism Council predicts that the industry will continue to grow, contributing nearly JPY 48.64 trillion ($320 billion) annually to Japan’s GDP by 2034.
The increase in foreign visitor spending has been attributed to a rise in spending on accommodation, shopping, and other travel-related expenses, reaching JPY 1.9 trillion ($13 billion) in the July-September quarter. Chinese visitors were the biggest spenders in the third quarter, followed by tourists from the Taiwan region, South Korea, and the U.S. The average spending per visitor in this period was JPY 223,000 ($1490), with Italians spending the most at JPY 400,000 ($2672) per person. The influx of tourists has also been supported by the increase in flight capacity and lower airfares, making travel to Japan more accessible.
Visitor arrivals from China have seen significant growth, with 5.2 million arrivals in the first nine months of the year, up 228% compared to the previous year. Chinese travelers perceive Japan as one of the safest outbound travel destinations, contributing to the country’s popularity among Chinese tourists. Mainland China is now the second largest source market for Japan, following South Korea. The U.S., Taiwan, and Hong Kong also feature among the top 5 source markets for visitors to Japan. The increase in visitor numbers has led to a boost in air connectivity, with various airlines operating direct flights to major Japanese cities and regional locations.
Japan’s tourism industry outlook remains positive, with experts forecasting continued growth in the sector. JLL’s Hotel Investment report highlights Japan as the most active market in the region, driven by favorable borrowing rates, robust tourism fundamentals, and a weak yen. The country’s tourism sector is expected to contribute significantly to Japan’s economy, with the WTTC projecting a contribution of 7.9% of the GDP by 2034. As visitor numbers and spending continue to rise, efforts to sustain this growth through enhanced air connectivity and promotional activities are essential to ensure the long-term success of Japan’s tourism industry. With a reputation for safety and a variety of attractions, Japan remains a top destination for international travelers.
