Alexandru Arba
Research expert covering Japan
Domestic tourism in Japan is a multi-trillion Japanese yen market and constitutes the main pillar of the travel and tourism industry in the country. Tourism forms an important part of the Japanese economy, as it generates considerable revenues, and provides a substantial number of jobs, while also contributing to the revitalization of rural areas. Domestic tourism data is commonly differentiated by the purpose of trips, dividing it into three segments. These include travel for home-coming or visiting friends, travel for leisure and recreation, and business trips. Travel for leisure and recreation is the most common type of trip and generates the most revenue in the industry.
The COVID-19 pandemic has negatively impacted domestic travel (and has had a catastrophic impact on inbound and outbound travel), resulting in record-low industry revenues between 2020 and 2022. The void of travelers caused by the advent of the pandemic led to sluggish performances during that period in related industry segments, such as the hospitality industry, gastronomy, and transportation industry, among others. In 2023, domestic tourism almost fully recovered, while inbound and outbound tourism were on a recovery track.
The COVID-19 pandemic has negatively impacted domestic travel (and has had a catastrophic impact on inbound and outbound travel), resulting in record-low industry revenues between 2020 and 2022. The void of travelers caused by the advent of the pandemic led to sluggish performances during that period in related industry segments, such as the hospitality industry, gastronomy, and transportation industry, among others. In 2023, domestic tourism almost fully recovered, while inbound and outbound tourism were on a recovery track.
