Skift Take
The tourism sun is shining bright over Japan as visitor numbers and revenues reach an all-time high in 2024. The challenge: sustaining the growth through 2025.
Foreign visitor spending in Japan in the first nine months of this year surpassed 2023’s full-year record of JPY 5.3 trillion ($35 billion).
International tourists spent JPY 5.8 trillion yen ($39 billion) between January and September 2024, according to data from the Japan Tourism Agency.
The number of foreign tourist arrivals fell just short of 27 million as of September 30, as per preliminary figures from Japan National Tourism Organization (JNTO). In September alone, the number of foreign tourists almost touched 3 million. The 3.29 million arrivals in July this year was an all-time high for any month.
The World Travel and Tourism Council (WTTC) had earlier forecast that international visitor spending is expected to set new records this year to reach JPY 6.3 trillion ($42 billion). By 2034, the sector is expected to contribute nearly JPY 48.64 trillion ($320 billion) annually to Japan’s GDP, representing 7.9% of the economy.
JLL’s Hotel Investment report released on Wednesday, noted, “Japan has been the most active market regionally and will remain so for the coming 12-18 months, driven by a positive spread over borrowing, robust tourism fundamentals and a weak yen.”
The Biggest Spenders
In the July-September quarter, foreign visitor spending on accommodation, shopping and other travel-related expenses rose to JPY 1.9 trillion ($13 billion), compared to JPY 1.4 trillion ($9.4 billion) during the same period in 2023, according to the agency.
The April-June quarter had registered a record high spending of JPY 2.1 trillion ($14 billion).
Visitors from the Chinese mainland spent the most in the third quarter, totaling JPY 517.7 billion ($3.4 billion) followed by the Taiwan region, South Korea and the U.S.
The average spending per visitor between July and September was JPY 223,000 ($1490), compared to JPY 163,000 ($1089) during the same period in 2019. Italians topped the average spending list, with a spend of JPY 400,000 ($2672) per person.
Where Are The Tourists Coming From?
In September, 2.87 million tourists visited Japan, slightly below the 2.93 million arrivals in August.
Visitor arrivals from China touched 5.2 million in the first nine months of the year, up 228% compared to the same period last year. In September alone 652,300 Chinese tourists traveled to Japan.
The recently-released Dragon Trail Chinese Traveler Sentiment Report mentioned that Chinese travelers perceive Japan as one of the safest outbound travel destinations.
Mainland China is now the second largest source market for Japan, just below South Korea’s 6.48 million arrivals between January and September. The U.S. with 1.9 million arrivals also features among the top 5 source markets, along with Taiwan and Hong Kong.
Though small, visitor numbers from Russia have also more than doubled year-on-year, reaching 64,000 for the January-September period.
Boosting Air Connectivity
Japan’s record-breaking tourism numbers have also been supported by the increase in flight capacity and lowering airfares.
Besides direct flights to major Japanese cities, China Eastern Airlines also operates direct flights from Shanghai to regional locations including Shizuoka, Okayama and Komatsu.
Chinese budget carrier Spring Airlines which operates direct flights connecting Shanghai to Takamatsu and Saga in Japan, earlier said that flight capacity on the two routes has exceeded 90%.
The average ticket price of Japan-bound flights has also fallen by more than 30% since last year, according to Ctrip.
Later this month, Korean Air will relaunch its Seoul Incheon-Nagasaki route for the winter season after a break of more than 11 years. The airline announced last month that it would be expanding its Japanese network, as its flights to this market exceed pre-pandemic levels.
Earlier this year, Air Canada launched a new nonstop service between Osaka and Toronto.
And as if that wasn’t enough, Japan Airlines last month also introduced an exclusive offer for international travelers from some countries, including U.S., Canada, Australia, New Zealand, India, China, Singapore, Thailand and others: complimentary domestic flights to any destination within Japan when booking an international flight with JAL.
