A shopping street in central Osaka bustling with Chinese inbound tourists, afternoon of November 14. (©Kohei Inoue).
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While tourism remains an important industry, the sheer volume of inbound visitors crowding cities has become a growing concern for Japanese residents.
For years, the "spending sprees" of Chinese tourists — who snapped up Japanese electronics in bulk — defined the boom and helped justify the economic upside. But that consumption pattern is reaching a turning point.
A rising share of travelers now falls into the category of budget-conscious "low-cost inbound tourists." And their overwhelming numbers, coupled with increasingly inconsiderate behavior, are pushing overtourism to critical levels.
Supermarket Safari
A supermarket near the Osaka Namba hotel, a favorite among visitors to Japan, becomes packed in the evenings when discount stickers appear on prepared foods.
But it isn't local shoppers who crowd around the shelves. It's foreign tourists dragging suitcases, murmuring "sushi, tempura!" They hoard prepared foods and canned beers before heading back to their hotel.
Numbers Keep Climbing
The number of visitors to Japan continues to climb. According to the Japan National Tourism Organization, 31,655,000 people visited between January and September — a 17.7% increase from the same period in 2024. It's the fastest pace ever to surpass 30 million.
At this pace, the full-year total is now almost certain to exceed the previous record of roughly 36.87 million set in 2024. Japan's historically weak yen has played a major role in shaping the perception that the country is more affordable than ever for travelers.
By country and region, China remains the largest source of inbound travelers. Of the 3.2668 million visitors to Japan in September, 775,500 came from China, an 18.9% year-on-year increase. The increase in regular flights between Japan and China is also seen as a contributing factor.
South Korea followed with 670,500 visitors (up 2.1% year-on-year), while Taiwan came in third with 527,000 visitors (up 12.0% year-on-year).
Spending Goes Slim
Spending by foreign visitors to Japan reached a record ¥6.9156 trillion ($44.2 billion) from January to September 2025. Simultaneously, however, their spending patterns have become more frugal.
Per capita expenditure has declined each year since 2022, when Japan fully reopened to overseas visitors after the COVID-19 pandemic. Average travel spending per person was ¥237,000 ($1,518) in April–June of this year, but dropped to ¥219,000 ($1,403) in the July–September quarter.
Looking at the details of foreign visitors' spending, luxury goods are no longer in high demand. Expenditures on shopping and transportation are also in decline.
Meanwhile, a significant portion of the budget is being spent on lodging, with newly opened hotels typically charging tens of thousands of yen per person per night.
The fact that guests at these hotels rush to supermarkets for discounted food offers a glimpse into the shifting consumption patterns.
Experiences over Extravagance
Visitors to Japan who no longer splurge on high-priced goods are also increasingly seeking "experiences." In mid-November, I visited a market in Osaka that has become a kind of "hallowed ground" for foreign tourists exploring the city.
Many shops there still appeared to take advantage of inbound visitors, selling items such as curry udon topped with a beef cutlet for ¥6,000 ($38) and packs of five salmon nigiri — comparable to supermarket quality — for ¥3,500 ($23).
During the COVID-19 pandemic, most shops in the area were forced to either close temporarily or shut down completely. With international visitors gone, many businesses then launched campaigns to attract Japanese customers back.
But shop owners need to recognize that even if inbound tourism is booming again, foreign visitors are now spending less. As a result, the local economy could take a serious hit if this decline in consumption continues.
Tourism Overwhelms Daily Life
You might think that if locals find these places unpleasant, they can simply avoid them. Yet the reality is more complex. Tourist spots are growing increasingly crowded, causing serious disruptions to residents' daily lives and taking a toll on the environment and the cityscape.
In the Kansai region, for instance, crowds at railroad crossings near Kyoto's Fushimi Inari Shrine have become a serious issue. Even after the gates open, people are often unable to move forward, leaving some stranded.
At Koyasan in Wakayama Prefecture, part of the World Heritage-listed Sacred Sites and Pilgrimage Routes in the Kii Mountain Range, the number of annual tourists has swelled to roughly 500 times the town's population. There have been instances where ambulances could not transport residents because the streets were occupied with tourists.
Quality Over Quantity
Amid this situation, the government is considering raising the international tourist tax. The proposal would increase the rate to ¥3,000 ($19), three times the current amount, with the funds earmarked for measures to ease overtourism.
Part of the additional revenue is also being considered for reducing the fees Japanese citizens pay to obtain passports.
Japan is increasingly becoming a destination for travelers seeking inexpensive overseas trips or for those with limited means. For a government that promotes the vision of a "tourism-based nation," the starting point of any tourism policy must be to prioritize its own citizens and their livelihoods.
Addressing overtourism is therefore an urgent task. Even with the government's goal of attracting 60 million visitors and achieving ¥15 trillion ($96 billion) in spending by 2030, the focus should not be on boosting numbers for their own sake.
What is needed is a shift from quantity to quality. Aiming to raise average spending per visitor rather than relying solely on volume.
RELATED:
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- How the Iconic Don Quijote Became Japan's New Tourist Landmark
Author: Kohei Inoue, The Sankei Shimbun
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