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In 2024, Japan's international tourism balance of payments amounted to around *** trillion Japanese yen, increasing by over *** trillion yen compared to the previous year. For decades, Japan had a negative tourism trade balance until inbound travel to Japan began soaring in 2012, turning Japan’s balance of payments in tourism positive from 2015 onwards.

Soaring inbound travel and sluggish outbound travel

A positive tourism trade balance means that expenditure by inbound travelers to Japan is higher than the spending of Japanese travelers abroad. Japan’s inbound tourism fully recovered after the shutdown that occurred during the COVID-19 pandemic, continuing its growth trajectory from before the pandemic. In fact, the number of inbound travelers reached a new peak in 2024, as did the total expenditure by international travelers. On the other hand, outbound travel by Japanese travelers had yet to recover to pre-pandemic levels. This resulted in a pronounced difference in spending between the inbound and outbound tourism segments, leading to a large positive tourism trade balance.

Inbound tourism as the rising star of Japan’s tourism industry

Japan’s large population and high living standards are solid bases for its large and mature travel and tourism industry, which is dominated by domestic tourism. However, the inbound tourism segment has become the rising star in Japan’s travel and tourism industry, gaining ground by the year. In 2024, the share of expenditure generated by the inbound travel segment comprised nearly a quarter of total travel expenditure, smashing the previous record. The potential for inbound tourism is huge, as are the expectations towards it. Preliminary data on international traveler entries from the first few months of the year seems to suggest that 2025 will deliver.