Travel & Tourism - Japan | Statista Market Forecast

It is projected that by 2024, the Travel & Tourism market industry in Japan will generate a revenue of US$42.38bn.
This revenue is expected to grow annually at a rate of 3.34%, resulting in a projected market volume of US$49.94bn by 2029.
Hotels represent the largest market in this market, with a projected market volume of US$25.78bn in 2024.
By 2029, the number of users in the hotels market is expected to reach 49.38m users.
In 2024, the user penetration rate in this market is expected to be 76.5%, and it is projected to increase to 82.6% by 2029.
The average revenue per user (ARPU) is expected to be US$451.50.
In 2029, it is expected that 85% of the total revenue in the Travel & Tourism market in Japan will be generated through online sales.
In comparison to other countries, United States is projected to generate the most revenue in the Travel & Tourism market, with US$214bn in 2024.
Japan's travel and tourism industry has been impacted by the COVID-19 pandemic, leading to a focus on domestic tourism and promoting unique cultural experiences.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Japan's Travel & Tourism market is experiencing significant growth and development.

Customer preferences: Travelers in Japan are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions towards off-the-beaten-path destinations. There is a growing interest in cultural activities, local cuisine, and immersive experiences that allow visitors to fully engage with the local culture.

Trends in the market: One notable trend in the Japanese Travel & Tourism market is the rise of sustainable and eco-friendly travel practices. Travelers are becoming more environmentally conscious and are actively seeking ways to minimize their carbon footprint while exploring new destinations. This trend has led to the emergence of eco-friendly accommodations, green transportation options, and responsible tourism initiatives across the country.

Local special circumstances: Japan's unique blend of traditional culture and modern innovation sets it apart as a top travel destination. The country offers a diverse range of experiences, from bustling metropolises like Tokyo and Osaka to serene natural landscapes such as Mount Fuji and the Japanese Alps. The rich history, delicious cuisine, and renowned hospitality of the Japanese people further contribute to the country's appeal to travelers from around the world.

Underlying macroeconomic factors: The Japanese government has been actively promoting tourism as a key driver of economic growth, leading to investments in infrastructure, promotion of cultural exchange programs, and relaxation of visa requirements for visitors. Additionally, the depreciation of the yen in recent years has made Japan a more affordable destination for international travelers, further boosting the Travel & Tourism market in the country.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.