🌸 In 2025, Japan's tourism industry reached a historic turning point. The number of foreign visitors surpassed 42.68 million, with spending hitting 9.5 trillion yen. But behind these figures lies a growing challenge: "overtourism" in places like Kyoto and Mt. Fuji. What's behind the rapid growth of inbound tourism, and how is Japan working toward sustainable tourism?

2025 Foreign Visitors: Breaking the 40 Million Barrier

According to the Japan National Tourism Organization (JNTO), the total number of foreign visitors to Japan in 2025 reached 42,683,600, breaking through the 40 million mark for the first time in history. This represents a 15.8% increase over 2024's 36.87 million visitors and exceeds the pre-pandemic peak of 31.88 million in 2019 by over 10 million.

By country and region, South Korea topped the list with 9.459 million visitors, followed by China at 9.096 million, Taiwan at 6.763 million, the United States at 3.306 million, and Hong Kong at 2.517 million. Notably, Australia crossed the 1 million threshold for the first time with 1.058 million visitors, becoming the seventh "million-visitor market."

Inbound Spending: 9.5 Trillion Yen Breakdown

According to the Japan Tourism Agency's Inbound Consumption Survey, foreign visitor spending in 2025 came to a record 9.4549 trillion yen (finalized figure), up 16.4% from 2024's roughly 8.13 trillion yen.

Looking at the spending breakdown, accommodation accounts for the largest share at approximately 36-38% of total expenditure. Shopping follows at about 25-26%, with food and beverage at roughly 21-23%. A notable recent trend is the shift from the traditional "bakugai" (explosive buying) to experience-based consumption, with travelers from Europe and the Americas spending over 80% on services.

Per-person travel spending averaged approximately 229,000 yen, roughly flat compared to the previous year. Since the increase in total spending was primarily driven by the recovery in visitor numbers, improving the quality of individual spending remains a challenge in achieving the government's goals of 60 million visitors and 15 trillion yen in consumption.

Overtourism Reality: A Kyoto Case Study

Behind the rapid growth of inbound tourism, overtourism has become an increasingly serious problem across Japan.

Kyoto City is particularly affected, with approximately 56.06 million tourists and 16.3 million overnight guests in 2024. The number of foreign overnight guests reached approximately 8.21 million, setting a new record that far exceeds pre-pandemic levels.

A Kyoto University survey found that over 80% of local residents report disruptions to their daily lives due to public transportation crowding. Specific issues include chronic congestion at popular tourist spots like Kiyomizu-dera Temple and Arashiyama, packed city buses affecting commuters and students, littering and noise problems, unauthorized photography and harassment of maiko and geiko, and rising accommodation prices affecting domestic travelers.

Overtourism Countermeasures Across Japan

In response to these challenges, various measures are being implemented throughout Japan.

Kyoto City introduced "Tourist Express Buses" in June 2024. These routes connect Kyoto Station directly to Kiyomizu-dera Temple and Ginkaku-ji Temple, with stops only at tourist destinations. While fares are approximately double regular bus rates, travel times are significantly reduced, helping separate tourist traffic from regular commuter routes.

The city also ended sales of the "Bus One-Day Pass" in September 2023, consolidating it with the "Subway-Bus One-Day Pass" to promote subway usage and diversify transportation options. Additionally, "Kyoto Tourism Moral" guidelines have been established to educate visitors on appropriate behavior.

Mt. Fuji implemented a substantial increase in trail access and climbing fees to approximately 4,000 yen for all routes starting summer 2025. Beyond the fee increase, new requirements include time and capacity restrictions, mandatory accommodation for night climbs, and completion of pre-visit e-learning courses—establishing a new framework of "meeting conditions to experience" rather than simply paying for access.

In Biei, Hokkaido, serious problems with tourists trespassing on private farmland and illegal parking led to the painful decision in 2025 to cut down 40 birch trees that had become a popular photo spot, in order to protect local farmers.

Expanding Accommodation Tax Implementation

To secure funding for overtourism countermeasures and manage demand, accommodation taxes are expanding nationwide.

Since Tokyo first introduced the tax in 2002, it has spread to Osaka Prefecture (2017), Kyoto City (2018), and Fukuoka City (2020). More recently, implementation has expanded to regional cities including Hokkaido and Sendai.

Osaka Prefecture has expanded its tax base by lowering exemption thresholds and restructuring tax rates. Kyoto City is also reviewing its system, with revenues being used as stable funding sources for maintaining and improving tourist destinations.

Government Policy Package

In October 2023, the government adopted the "Policy Package for Preventing and Mitigating Overtourism," advancing measures along three pillars.

First, "Addressing excessive crowding and manner violations from tourist concentration" includes promoting dispersion from crowded bus routes to subways, piloting hands-free tourism initiatives, implementing access management, and flexible pricing.

Second, "Promoting tourism to regional areas" aims to correct the concentration in urban areas. Eleven model regions have been designated for developing high-value-added inbound tourism destinations to distribute visitors more widely.

Third, "Tourism promotion in collaboration with local residents" supports communities in envisioning their ideal future and implementing measures suited to local conditions.

Discussions on Increased Taxation of Foreign Visitors

Revisions to the consumption tax exemption system are also underway. From November 2026, a "refund system" will be introduced where purchases are made at prices including consumption tax, with refunds provided when goods are confirmed to be taken out of the country upon departure.

Proposals have also emerged within the government and ruling party to increase tax burdens on foreign visitors. Ideas under discussion include limiting tax refunds to 5% (half the normal rate) and using the remainder for overtourism countermeasures, as well as raising the international tourist tax (departure tax).

Future Outlook: The Road to 100 Million Visitors

Among inbound tourism experts, there is discussion of Japan potentially reaching 100 million foreign visitors annually in the future. Tourism powerhouse France already surpassed 100 million in 2023, with Spain and Italy following close behind.

Japan's strengths include attractive tourist destinations in all 47 prefectures, over 200 castle towns, and world-class snow resorts. Winter tourism demand has surged particularly, with 3.78 million visitors in January 2025 setting a new monthly record.

However, workers who left the tourism-related industries during the pandemic have not returned, creating serious labor shortages. The ongoing inability to increase the number of taxis and buses makes improving reception capacity an urgent priority.

Transitioning to Sustainable Tourism

Japan's tourism industry is now being pushed to transition from "quantity" to "quality." Rather than simply pursuing increased visitor numbers, there is growing demand for sustainable tourism that increases per-visitor spending, brings benefits to local communities, and maintains harmony with residents' daily lives.

According to JTB research, Japanese attitudes toward increasing foreign tourists vary by generation. Younger generations tend to view it positively for economic revitalization and local vibrancy, while those over 50 more often express concerns about visitor manners and impacts on resident life.

Japan is walking the path toward becoming a world-class tourism nation while working to maximize tourism's benefits for local communities and minimize its negative impacts—a difficult balance to strike.

Various discussions are taking place in Japan about the benefits and challenges of tourism. What's the situation with the tourism industry and overtourism in your country? Do you face similar challenges at local tourist destinations? We'd love to hear about your country's experiences!

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