Japan Inbound Tourism Market, Size, Share, Forecast, Industry Trends, Growth, Outlooks, Impact of Inflation

Japan Inbound Tourism Market, Size, Share, Forecast, Industry Trends, Growth, Outlooks, Impact of Inflation
Japan Inbound Tourism Market is expected to reach US$ 79.53 Billion by 2028, according to Renub Research. Japan has emerged as a highly coveted destination for global travelers, attracting visitors from all corners of the globe. The tourism industry in Japan is experiencing steady growth and holds immense potential to contribute significantly to the country's economy in the years to come. Japan's proactive measures, such as the deregulation of the industry and the introduction of casinos, coupled with its welcoming approach to international tourists, further bolster this potential.

Travelers are drawn to Japan's awe-inspiring landscapes, including the majestic Mt Fuji and culturally vibrant cities like Kyoto. Recognizing the transformative power of tourism, the Japanese government has made it a top priority in its ambitious quest to achieve a nominal GDP of 600 Trillion Yen (US$5 Trillion). To facilitate this, the government has implemented various policy reforms, including relaxed visa requirements and expanded low-cost air travel options, solidifying Japan's position as a ""tourism-oriented country.""

Following its reopening to international tourists in October 2022, Japan experienced an immediate influx of visitors. In December of the same year, the country welcomed 1.4 million tourists, surpassing half of the total number of visitors recorded in December 2019, a record-breaking year for Japanese tourism. The numbers continued to rise in January, with nearly 1.5 million visitors. Notably, these figures were achieved without the presence of Chinese tourists, who accounted for almost one-third of foreign visitors in 2019.

Japan Inbound Tourism Market is poised to witness remarkable and unpredictable growth, with a projected Compound Annual Growth Rate (CAGR) of 58.95% during the period from 2022 to 2028.

This growth can be attributed to various factors, including Japan's unique cultural offerings, breathtaking landscapes, and the government's initiatives to attract international visitors. With its rich history, vibrant cities, and natural wonders, Japan has become an increasingly popular destination for travelers from around the globe. The country's efforts to enhance infrastructure, ease visa regulations, and promote tourism have contributed to the significant growth potential of the Japan Inbound Tourism Market.

JTB Corporation, Japan's largest travel agency, projects that in 2023, the country will receive approximately 21.1 million inbound visits. This estimate represents two-thirds of the visitor levels seen in 2019 and is more than four times the total number of visits recorded in 2022. The optimistic outlook underscores the growing appeal of Japan as a travel destination and signals a promising recovery for the tourism industry.

Japan, officially known as Nippon, is a captivating archipelago situated in the northwest Pacific Ocean. Comprised of four major islands—Honshu, Hokkaido, Shikoku, and Kyushu—and more than 4,000 smaller islands, this enchanting nation offers a diverse range of landscapes and climates. With a population of 126 million, Japan boasts a rich cultural heritage and awe-inspiring natural wonders that have already enticed 4.7 million visitors within the first three months of 2023.

Furthermore, the Ministry of Internal Affairs and Communications has requested a budget of 3.88 Billion Yen for Fiscal Year 2021-22 to drive Digital Transformation initiatives in local governments. The Ministry of Economy, Trade and Industry (METI) has also released the Smart Resort Handbook, which serves as a comprehensive guide to leveraging Digital Transformation to attract visitors, boost consumption, enhance regional productivity and sustainability, and foster a globally competitive tourism industry. Japan Inbound Tourism Market was US$ 4.93 Billion in 2022.

China holds the largest market share in Japan thriving Inbound Tourism Industry

Tourist by Countries, Japan Inbound Tourism Market is breakup into Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others. Chinese tourists, with their strong interest in Japanese culture, cuisine, and attractions, contribute significantly to the country's tourism revenue. Their enthusiasm for exploring Japan's historical sites, scenic landscapes, and vibrant cities makes China a key market for the Japanese tourism sector, driving growth and creating valuable opportunities for businesses in the industry. Japan is looking forward to Chinese tourists, especially tourism-related industries.

Following the easing of travel restrictions by the Japanese government, mainland China saw a resumption of cross-border travel to Japan. The Japan National Tourism Organization reported that in 2022, the number of Chinese tourists visiting Japan stood at 189,100, a significant decline from the pre-pandemic level of 9.6 million in 2019. In terms of tourism expenditure, Chinese visitors were the highest spenders, contributing a total of 1.77 Trillion Yen in 2019, accounting for 36.8% of the overall spending by foreign tourists in Japan. These figures highlight the substantial impact of the pandemic on Chinese tourist numbers and their significant role in Japan's tourism industry.

Hong Kong Holiday & Leisure tour segment dominates the market in Japan Inbound tourism industry

By Holiday & Leisure, Japan Inbound Tourism Market is divided into Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others. With its close proximity, cultural ties, and excellent connectivity, Hong Kong has become a favored destination for travelers seeking to experience the rich cultural heritage and natural beauty of Japan. The number of visitors from Hong Kong to Japan has been steadily increasing, driven by factors such as rising disposable incomes, improved travel infrastructure, and the appeal of unique experiences offered by Japan. As Hong Kong tourists explore the vibrant cities, historical landmarks, and scenic landscapes of Japan, they contribute significantly to the growth and success of the Japanese tourism industry.

China business tour segment holds the highest market share in Japan tourism industry

By Business, Japan Inbound Tourism Market is segmented into Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others.With its robust economy and strong business ties with Japan, Chinese companies and professionals frequently visit Japan for business purposes. These business tours contribute significantly to Japan's tourism revenue, as Chinese visitors engage in various business activities such as meetings, conferences, exhibitions, and networking events.

Japan unique cultural experiences, advanced technology, and business-friendly environment attract a large number of Chinese business travelers. The spending power of Chinese business tourists is noteworthy, as they often indulge in high-end accommodations, dining, shopping, and entertainment during their stays. To cater to this lucrative market segment, Japan continues to develop and improve its infrastructure, services, and business facilities to provide a seamless and rewarding experience for Chinese business travelers.

Renub Research latest report titled “Japan Tourism Market, Inbound Tourists by Countries (Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others),By Holiday & Leisure(Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others),By Business(Korea, Taiwan, Hong Kong, USA, Thailand, Australia, Philippines, Malaysia, Vietnam, Singapore, UK, Indonesia, Canada, France and Others), Survey Insights (Visitors and Trips — by Area of Visit, Average Number of Nights — by Area of Visit, Main Purpose of the Trip, Places to Shop in Japan)” provides a detailed analysis of Japan Inbound Tourism Industry.

Japan Inbound Tourist’s Survey Insights have been covered from 4 viewpoints:

1. Characteristics of Visitors and Trips — by Area of Visit
2. Average Number of Nights — by Area of Visit
3. Main Purpose of the Trip
4. Places to Shop in Japan

Japan Inbound Tourism Market Analysis has been covered from 2 viewpoints:

1. Total Inbound Tourism Market
2. Total Inbound Tourist Numbers

Market & Volume by Countries – Inbound Tourism Market have been covered from 15 Countries and Others:

1. China
2. Korea
3. Taiwan
4. Hong Kong
5. USA
6. Thailand
7. Australia
8. Philippines
9. Malaysia
10. Vietnam
11. Singapore
12. UK
13. Indonesia
14. Canada
15. France
16. Others

Countries – Inbound Tourist Market & Volume have further been covered from 4 viewpoints:

1. Holiday & Leisure
2. Business
3. Others
4. Per Capita Spending