Home » TRAVEL NEWS » Record Visitors In Japan Driven by Weakened Yen, but Domestic Tourism Struggles: What New Updates You Need to Know

Published on
February 19, 2026

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Japan’s tourism industry is breaking records again, with over 40 million visitors expected in 2025, a 16 percent increase from 2024. The increase is largely due to a decline in tourism, which is part of Prime Minister Sanai Takaichi’s economic growth policies. This decline makes Japan an easier country for travelers to visit, especially from countries such as China, Singapore, Hong Kong, and Australia. Travel is becoming cheaper, making it a prime destination for international visitors.

Record Tourism Growth in Japan

2025 is expected to bring even more tourism to Japan, especially for places like Nazar Onsen. The Japanese hot springs have and will continue to draw in tourists because of their beautiful and culturally rich environment. Even when diplomatic relations with countries such as Taiwan are strained, Japanese hot springs will continue to draw tourists. The Japanese government consistently puts policies in place to ensure tourism will continue to increase, such as lowering travel costs and currency depreciation policies.

Infrastructure Challenges Amidst Growth

Japan has greatly improved its tourism sector. However, there are negative repercussions for local infrastructure. The increased level of tourism has caused large problems in Ueno and Umeda, as there are large amounts of international tourists in these locations. This has caused accommodations, public transit, and other services to be easily over capacity, and has greatly increased the cost of available accommodations. This has led to widespread negative sentiment over the sustainability of tourism in popular locations in Japan.

Effects on Domestic Tourism

While international tourism in Japan has created new opportunities, domestic tourism has suffered in large part due to the problems created by international tourism. The overall price of tourism in Japan has increased, and as a result, local tourists are being pushed out of the mainstream tourist spots. The new price levels have international tourists taking advantage of currency differences, while native residents are losing disposable income due to the increased prices, and are no longer able to afford lodging, food, and transit. This situation has caused a large consensus in the public that there needs to be more moderate tourism policies that prioritize domestic tourism over international tourism.

Overtourism and Strain on Popular Locations

Japan’s most popular tourist destinations are seeing a surge in international visitors. However, this has also raised concerns for overtourism, especially in locations like Nazar Onsen, Kyoto, and Tokyo. These areas are becoming so overcrowded that it threatens their main attractions: unique cultures and peaceful atmospheres. Residents and business owners alike are concerned that the growing number of visitors will bring about a decline in their quality of life, as well as the environment, and deplete local resources.

Strain on Infrastructure and Challenges to Sustainability

The increase in international tourists has placed a large amount of strain on Japan’s tourism infrastructure, which was far from adequate to handle this rapid expansion. Public transit, popular attractions, and airports in large cities are becoming overcrowded. This leads to increased delays, longer wait times, and lower overall service availability for visitors and residents. This has increased demand from the local tourism industry for improved infrastructure and the preservation of overused locations.

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There is increasing advocacy for sustainable practices in tourism, such as eco-friendly tourism and the distribution of tourists to less traveled places in Japan. Japan can remain an attractive travel destination to both locals and international travelers by promoting travel to less explored places and the distribution of travel seasons to lower the congestion of over-traveled places.

Japan’s Tourism Industry and Its Future

Japan’s tourism industry will depend on how the nation manages its increasing popularity. The government will need to reassess how it manages its tourism on an international level by promoting eco-friendly tourism to lessen the congestion of previously mentioned places while improving the quality of services offered. Japan’s tourism industry will need to protect its resources while allowing for economic growth in its tourism industry.