The Nikkei Shimbun recently reported that Mori Trust announced on July 16th that Japan is expected to welcome an estimated 34.5 million inbound tourists in 2024, marking a 38% increase from the previous year.
This forecast significantly exceeds pre-pandemic levels. The anticipated travel expenditure by these tourists is projected by Mori Trust to rise by 30%, reaching a record ¥6.92 trillion.
Mori Trust President Miwako Date, courtesy of company website.
Prior to this, the highest number of inbound tourists was recorded in 2019 at 31.88 million, with the highest travel expenditure at ¥5.31 trillion in 2023.
This surge is driven by the yen's depreciation, which enhances Japan’s affordability, and a notable increase in visitors from Europe and North America compared to pre-pandemic.
We must overhaul outdated Showa-era systems – Miwako Date according to Nikkei Shimbun
At a media briefing on the same day, Mori Trust President Miwako Date commented, "The Tokyo Olympics and Paralympics may have boosted Japan’s profile, embedding a latent desire to visit among global audiences."
The Japanese government aims to attract 60 million inbound tourists annually by 2030.
President Date highlighted the need for securing labor and enhancing infrastructure to achieve this goal. She called for reforms, including revising the "income wall" policy—where individuals face increased taxes and social insurance burdens upon exceeding a certain income level—alongside accepting more foreign workers and introducing ride-sharing services. "We must overhaul outdated Showa-era systems," she asserted.
Currently, various regions are grappling with issues of over tourism. President Date suggested measures such as deploying dedicated tourist buses to manage congestion.
She also advocated for revising Japan’s relatively low accommodation taxes and public facility entrance fees to fund necessary infrastructure improvements.
In recent years, Mori Trust has been actively developing hotels in Nara and Nagasaki prefectures.
Shisui, a Luxury Collection Hotel in Nara, designed by Kengo Kuma. Photo courtesy of Mori Trust.
The company noted that areas outside the traditionally popular "Golden Route"—which runs from Tokyo through Mount Fuji to Kyoto and Osaka—are witnessing a rise in foreign tourists, indicating significant growth potential.
Sources:
Nikkei Shimbun (Japanese only; paywalled)
Nikkei Asia with somewhat related English version (paywalled but try a private browser window to access one free article)
