TOKYO — Japanese travelers are cutting back on domestic overnight stays as rising inflation and a surge in foreign visitors make affordable accommodations increasingly difficult to find in popular tourist destinations.
Government data from the Japan Tourism Agency reveal that, throughout 2024, domestic stays by Japanese tourists have fallen year-on-year each month, with only a modest increase of 0.3% in April.
Rising Competition and Prices
The tourism sector in Japan has seen a rapid recovery post-pandemic, bolstered by the arrival of a record number of foreign visitors. However, this influx has put pressure on hotel rates, pricing many Japanese citizens out of popular domestic travel spots. With inflation also driving up the cost of living, many locals are reconsidering their travel plans and opting to stay closer to home or limit their overnight trips altogether.
While Japan’s tourism industry benefits from the boom in international visitors, the competition for accommodation is creating a dilemma for local travelers, who now struggle to find reasonably priced stays in high-demand areas.
Government Response and Economic Impact
As domestic tourism falters, the government is facing the challenge of balancing the benefits of international tourism with the need to support local travel.
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