Japan Witness a Record 10.5 Million Visitors in Q1-25

The commencement of Expo 2025 at Osaka and favourable exchange rate coupled with the alluring cherry blossom season has witnessed Japan’s tourism sector in achieving a historic milestone, as the country welcomed over 10.5 million international visitors in the first quarter of 2025.

Statistics released by the Japan National Tourism Organisation (JNTO) showed that March alone witnessed a record-breaking 3.5 million arrivals, up 13.5% y-o-y, with notable increases from the US and Canada.

The largest origin market was South Korea with 691,700 (up 4.3% y-o-y), followed by China with 661,700 visitors (up 46.2%), Taiwan with 522,900 visitors (up 7.9%), the US with 342,800 visitors (up 18.2%) and Hong Kong with 208,400 visitors (down 9.9%).

JNTO also said that there has been an increase in the number of Muslim travellers from Southeast Asia and Middle East after Ramadan.

The influx of tourists has significantly contributed to the economy, with foreign visitor spending approximately $16 billion in the first quarter of this year, positioning tourism as Japan’s second-largest export sector after automobiles.

The ongoing Expo 2025 in Osaka, themed “Designing Future Society for Our Lives,” is expected to further bolster tourism. The event, which commenced on April 13 will conclude on October 13 this year and JNTO estimates approximately 28 million visitors to the event, showcasing innovations from over 160 countries.

In fact, projections indicate that Japan is on track to exceed its 2024 record of 36.87 million visitors, with estimates suggesting over 40 million international arrivals by the end of 2025. This growth underscores Japan’s position as a premier global destination and highlights the effectiveness of its tourism strategies.

Tourist Tax

However, the rapid increase in tourism has also brought challenges and to help control the influx of visitors, the Japanese government is looking to implement a tourist tax.

Concerns over over-tourism have led to measures such as capping daily climbers on Mount Fuji and implementing entrance fees of $27 per person, which is double the original cost, from May this year to temper over-tourism. However, the price will not increase for Japanese citizens.

The main aim of collecting tourist tax is to protect cultural landmarks, generate funds to provide adequate infrastructure and to create balance. Authorities are also promoting lesser-known destinations to distribute tourist traffic more evenly across the country.

As Japan continues to experience unprecedented growth in its tourism sector, stakeholders are focusing on sustainable practices to ensure long-term success. The balance between economic benefits and preserving cultural and environmental integrity remains a central theme of Japan’s tourism.

For travel and hospitality professionals, these developments present both opportunities and responsibilities. Engaging with Japan’s evolving tourism landscape requires a commitment to sustainable practices and a deep understanding of the cultural nuances that make Japan a unique destination.