Yuji Kosugi, General Manager of Mitsubishi UFJ Bank's Kyoto Branch. (©JAPAN Forward by Mika Sugiura)
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The number of foreign visitors to Japan has reached record highs every month this year, with Kyoto leading the way. At the same time, overtourism has become a pressing issue.
We spoke with Yuji Kosugi, who became general manager of Mitsubishi UFJ Bank's largest Kyoto branch in April, about his outlook.
"Increased inbound tourism brings both opportunities and challenges for our clients. While it's a mixed picture, the overall impact is definitely positive," he said.
Impact of Overtourism
While investments aimed at inbound visitors are thriving, one surprising trend is that traditional souvenirs, such as Japanese sweets, have not seen a corresponding rise in demand.
In Kyoto, overtourism is affecting daily life through issues like littering and traffic congestion. In response, the city plans to raise the maximum accommodation tax from the current ¥1,000 JPY (around $6 USD) per night to as much as ¥10,000 starting in March 2026.
"Some countries have introduced dual pricing for foreign visitors and locals at museums and tourist facilities. We've also heard of private companies in Japan doing the same. For us, the key is how to make inbound tourism profitable," Kosugi explained.
Unique Mix of Assets
Kyoto is also a treasure trove of food culture rooted in tradition.
"We want to create a multiplying effect by connecting university startups with local government initiatives," Kosugi explained.
Kyoto is also one of Japan's leading university cities. In 2025, two Nobel laureates were recognized in Kyoto, and the city has historically produced several Nobel Prize winners. Its assets range widely, from traditional temples and shrines to advanced industries.
"Kyoto has unique clusters. Leveraging its assets to connect industrial investment with social implementation is important. It could become a model for regional revitalization," he said.
Creative Collaborations
MUFG Bank has spearheaded the Kansai Innovation Center (MUIC) to support innovative tourism initiatives. Working with private companies and government bodies, MUIC hosts annual digital art events at sites such as Nijo Castle, Heian Shrine, and Byodo-in Temple. In October, MUIC opened its Kyoto branch.
When the bank called for internal project proposals, they received 60 submissions.
"Some ideas aim to preserve and develop Kyoto's traditional culture. Using mechanisms like the corporate hometown tax system, we want to think creatively about what's possible and launch the first social implementation or pilot project next year," Kosugi said enthusiastically.
Food Culture
Before becoming the Kyoto branch general manager, Kosugi led the Chemicals & Wellbeing Division, promoting solutions to social issues related to food.
"In the United States, there's the Culinary Institute of America, and in Spain, the Basque Culinary Center. Both teach about food, including management, at the university level. Japan still lacks formal higher education in food and culinary arts. Perhaps it's time to establish a food academia here as well," he suggested.
Washoku, or traditional Japanese cuisine, was registered as a UNESCO Intangible Cultural Heritage in 2013, with Kyoto contributing to the effort. Globally, Japanese cuisine is seen as healthy, but the number of scientific studies demonstrating its benefits is far lower than for Mediterranean cuisine, which was registered as a UNESCO heritage in 2010.
"Japanese food is respected worldwide, but the way we present it isn't scientific. We need epidemiological research to communicate the benefits of washoku in a rigorous, scientific way," he said.
Kyoto's Potential
A Kyoto native, Kosugi is serving at the Kyoto branch for the second time.
"Kyoto has everything — from publicly listed companies generating ¥2 trillion in sales to temples, academia, and traditional arts like tea ceremony and flower arrangement. The community ties are strong. Engaging on all fronts and earning trust is one of our strengths," he said.
Addressing the perception that the region can seem highbrow and unapproachable, he added, "Kyoto is actually very welcoming to new ideas and new values. We work behind the scenes, but we want to turn the benefits of inbound tourism into a source of strength for Japan."
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Author: Mika Sugiura
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