Japan is seeing its first drop in inbound tourism in five years, but spending by international visitors is on the rise.
According to the Japan National Tourism Organization (JNTO), foreign travellers totalled 21.08 million between January and June 2026, a fall of two per cent year-on-year, even as their consumption grew 0.2 per cent over the period.
The decline is due to a sharp contraction in visitors from China, down 56.4 per cent year-on-year, following remarks on Taiwan in November 2025 by Japanese prime minister Sanae Takaichi, which prompted Beijing to advise its citizens against travelling to Japan.
Still, the loss is being offset by growth from other source markets, including Taiwan (up 20.9 per cent), South Korea (up 18.6 per cent) and the US (up 7.1 per cent), keeping total inbound spending at record levels.
Emerging source markets are also gaining momentum, with visitor numbers from Mexico, Russia and India rising by 29 per cent, 25 per cent and 23 per cent, respectively, over the period.
These nascent markets are also home to some of the highest spenders. From January to June 2026, Mexico ranked as the top spender per capita, with average consumption of 514,925 yen (US$3,236), followed by the Middle East (483,000 yen), the UK (456,493 yen), Russia (455,000 yen), Australia (426,949 yen) and the US (387,547 yen).
Japan has welcomed the diversification of its tourism source markets as part of its goal to achieve sustainable tourism.
“Prior to the Covid-19 pandemic, visitors from Asia accounted for 83 per cent of all inbound travellers to Japan; however, this share declined to 77 per cent in 2025, while the proportion of visitors from Europe, the Americas and Oceania has correspondingly grown,” said a JNTO spokesperson.
