🌸 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?

42.68 Million Visitors, and a First Past 40 Million

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. Australia cleared 1 million for the first time in a single year, 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 preliminary Inbound Consumption Survey, foreign visitor spending in 2025 came to a record 9.4559 trillion yen, up 16.4% from 2024's 8.1257 trillion yen.

By category, accommodation led at 3.4617 trillion yen, or 36.6% of the total, followed by shopping at 2.549 trillion yen (27.0%) and food and drink at 2.0711 trillion yen (21.9%). Compared with the previous year, accommodation gained share while shopping lost it. The shift from the traditional "bakugai" (explosive buying) to experience-based consumption continues, with travelers from Europe and the Americas spending over 80% on services.

Per-person travel spending averaged 229,000 yen, up 0.9% and essentially flat. The rise in the total came mainly from visitor numbers, so lifting per-head spending remains the open question for the government's 2030 targets of 60 million visitors and 15 trillion yen.

What Is Happening in Kyoto

Behind the growth, overtourism is spreading across Japan.

Kyoto is the emblem. The city counted 56.06 million tourists and 16.3 million overnight guests in 2024. Of those, 8.21 million overnight guests were foreign visitors, outnumbering Japanese guests (8.09 million) for the first time since the statistics began in 1958.

A 2019 Kyoto University survey found that over 80% of local residents report disruptions to their daily lives from public transport crowding. The complaints run wide: chronic congestion at Kiyomizu-dera and Arashiyama, packed city buses that leave commuters and students behind, littering and noise, unauthorized photography and pursuit of maiko and geiko, and accommodation prices that have priced out 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 raised trail access and climbing fees to an effective 4,000 yen on all routes starting summer 2025. The money is only part of it: there are now time and capacity limits, a lodging requirement for night climbs, and a mandatory pre-visit e-learning course. The framework has shifted from paying for access to meeting conditions for it.

In Biei, Hokkaido, trespassing on private farmland and roadside parking grew serious enough that in January 2025 the birch grove near the "Seven Star Tree" was felled. Shade cutting into crop yields, the labor of clearing fallen leaves and litter, photographers crowding the road: the decision came at the request of local residents.

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).

Will the 100 Million Era Arrive?

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 are destinations in all 47 prefectures, over 200 castle towns, and world-class snow resorts. Winter demand is climbing too: the 3.78 million visitors of January 2025 set a monthly record at the time, surpassed that April by 3,908,900.

Workers who left tourism during the pandemic have not returned, and the shortage is severe. Taxi and bus fleets cannot grow, leaving reception capacity as the urgent unmet task.

From "Quantity" to "Quality"

According to JTB research, Japanese attitudes toward rising foreign visitor numbers split by generation. Younger people tend to see economic revitalization and local vibrancy, while those over 50 more often raise concerns about visitor manners and the impact on daily life.

Chase the count, or chase per-head spending and what stays in the region? Whether Japan can maximize the benefits and minimize the damage at the same time is what "tourism nation" will actually mean.

Update: Since the Chinese government urged citizens to refrain from travel to Japan in November 2025, Chinese arrivals have dropped sharply. JNTO reports 21,084,800 foreign visitors in the first half of 2026, down 2.0% year on year, the first half-year decline in five years, with China down 56.4% to 2,058,200. South Korea (up 18.6% to 5,675,100) and Taiwan (up 20.9% to 3,972,200) grew, and the market mix is shifting. Kyoto, meanwhile, recorded 62.79 million tourists and 2.0474 trillion yen in tourism spending in 2025, both all-time highs.

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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