Japan Deals With the Challenge of Tourism Boom

With around 17.78 million foreign visitors to Japan in the first half of 2024, the highest ever for a six-month period, Japan is expected to welcome a record number of visitors. This is a positive sign as Japanese tourism recovers quickly after the Covid-19 pandemic, but it also poses many new challenges. The Japanese government is working to address the problem of overtourism and develop the smokeless industry sustainably.

At a cabinet meeting on July 19, Japanese Prime Minister Kishida Fumio said that the number of foreign visitors to Japan in 2024 is expected to be 35 million, surpassing the record of 31.88 million recorded in 2019, leading to an all-time high of about 8,000 billion yen (50 billion USD) in spending by international visitors due to the weak yen. To increase revenue from this key economic sector, the Japanese government aims to attract 60 million foreign visitors a year from 2030 by promoting the expansion of domestic tourism and developing sustainable tourism areas. According to monthly data released by the Japan National Tourism Organization, the country welcomed about 3.14 million international visitors in June, up 51.2% compared to the same period in 2023 and marking a new monthly record. This is also the fourth consecutive month that the number of foreign visitors has exceeded 3 million. South Korea topped the list of visitors to Japan in June with more than 700,000, up 29% from the same period in 2023, followed by China with about 660,000. In addition, the weak yen also boosted tourism spending to a new high of about 2.1 trillion yen ($13 billion) in the April-June quarter.

While Japan’s tourism industry is booming, the surge in visitors has also brought with it challenges such as traffic congestion, pollution, disruption to residents’ lives and other issues when tourists do not comply with local regulations. In this context, Prime Minister Kishida pledged to take measures to address overtourism, including attracting tourists to lesser-known areas and reducing the consequences of overtourism such as traffic congestion and violations of traditional Japanese etiquette. To attract foreign tourists to rural areas, the Japanese government will consider establishing a financial support program to expand flights to local airports. Twenty areas across Japan have been selected as pioneers to raise awareness of tourist behavior. Meanwhile, the Japanese government said it will add six more areas and plans to compile guidelines to tackle overtourism by the end of this year.

In an effort to meet the growing demand for entry, the Japanese government is planning to introduce a new system that will shorten the time it takes for foreign visitors to enter Japan from early 2025. The new system, called “advance clearance,” will allow international visitors to use the waiting time at the departure airport to complete most of their entry procedures into Japan. Upon arrival, visitors can enter the country smoothly and quickly with just a simple check. In addition, the Japanese government has decided to develop guidelines by the end of this year to deal with overtourism. The guidelines are expected to consider issues such as tolls at tourist attractions and special fees for foreign visitors.

Overtourism, also known as "tourism pollution," is affecting the lives of local residents and has become a serious problem. Local governments in Japan are rushing to secure financial resources to cover the costs of countermeasures such as considering introducing an accommodation tax system to raise more funds to improve the quality of services. The Japan Association of Business Executives has proposed a draft bill to legislate the accommodation tax and apply it from 2026 as a stable source of revenue to revive the tourism industry.

Japan has witnessed incredible growth in the tourism sector over the years and has become one of the most attractive destinations in Asia. The Japanese Government's implementation of many measures to improve the quality of services not only contributes to exploiting tourism potential but also promotes sustainable tourism development, so that the Land of the Rising Sun always becomes an attractive destination.

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