Japan Tourism Faces Overcrowding Concerns Amid Rising Low-Cost Visitors: Overtourism and Shifting Consumption Patterns Threaten Local Experiences

Published on December 1, 2025

The economy of Japan has historically relied heavily on tourism, but the country’s growing number of visitors is now causing concern. The Japan National Tourism Organisation reports that over 31.6 million foreign visitors arrived in the first nine months of 2025, a 17.7% increase over 2024. The number of foreign visitors has been steadily increasing. The strain on local life and infrastructure has increased despite the economic boost, raising concerns about overcrowding and declining quality of experiences for both visitors and locals.

Overtourism in Japanese Cities: Residents Feel the Strain

Tourism in Japan is facing a critical juncture. The once-typical influx of high-spending tourists, particularly from China, is giving way to a new demographic: budget-conscious travelers. This shift is evident in the rise of low-cost inbound tourists, whose sheer numbers and growing disregard for local customs are driving overtourism to alarming levels. Cities like Osaka and Kyoto are bearing the brunt of the surge, where local supermarkets and attractions have become overcrowded, disrupting daily life for residents.

In the bustling area around Osaka’s Namba hotel, foreign tourists are often seen swarming discount shelves in supermarkets, hoarding prepared meals and canned goods. This “supermarket safari”, where visitors drag suitcases and excitedly mutter about their food choices, is just one example of the growing challenges faced by locals. These behaviours not only affect the daily rhythm of the city but also paint a picture of how the tourism industry is shifting towards mass tourism rather than high-value experiences.

Rising Numbers, Frugal Spending: Shifting Consumption Patterns

Japan’s tourism boom is being fuelled by an increasingly affordable yen, attracting travelers from all over the globe. Despite the influx, however, the profile of the average tourist is changing. While the number of visitors continues to rise, their spending habits have shifted. The average travel expenditure per person dropped from ¥237,000 ($1,518) in the first quarter of 2025 to ¥219,000 ($1,403) in the second quarter, a decline seen year-over-year since Japan reopened its borders post-pandemic.

Once known for splurging on luxury goods, many tourists are now more cautious with their spending. Purchases of high-end goods, shopping, and transportation have all declined, while more money is being funnelled into accommodations. Despite this, visitors are still opting for budget-friendly options, opting for supermarkets over high-priced restaurants and souvenirs. This marks a major shift in the consumption patterns of international tourists in Japan.

Overcrowding and Local Disruptions

The consequences of this surge are being felt in more than just consumer spending. Popular tourist spots like Kyoto’s Fushimi Inari Shrine are becoming so congested that locals are finding it difficult to navigate their own neighbourhoods. With tourist numbers far exceeding local populations, the pressure on public infrastructure is mounting. The situation at Koyasan in Wakayama Prefecture, a UNESCO World Heritage site, paints a stark picture, where tourists now outnumber residents by a factor of 500.

The overcrowding has led to serious disruptions, such as ambulances being unable to navigate the streets due to tourist congestion. Local communities are finding it harder to balance their daily routines with the constant presence of tourists, and the toll on the environment and cityscape is undeniable. This growing tension is becoming increasingly difficult to ignore for both residents and businesses.

Government Response: International Tourist Tax Proposal

In light of the increasing pressures, the Japanese government is considering a significant change to address overtourism. A proposal to raise the international tourist tax has been put forward, which would see the current rate of ¥1,000 ($6) rise to ¥3,000 ($19) per traveller. This tax would help fund measures designed to mitigate the impact of overcrowding on local communities and the environment.

The funds collected from this tax would also be used to reduce passport fees for Japanese citizens, creating a dual benefit that seeks to balance the needs of both tourists and the local population. While the policy may not be a panacea for overtourism, it represents a step towards addressing the imbalances that have emerged between economic growth and local well-being.

A Shift Towards Quality Over Quantity in Tourism

Looking ahead, Japan’s tourism policy is likely to undergo a transformation. The government’s target of attracting 60 million visitors by 2030 and generating ¥15 trillion ($96 billion) in tourism revenue is ambitious, but it should not come at the expense of quality. Experts argue that Japan’s focus should shift from sheer numbers to attracting high-value tourists who are willing to invest in authentic experiences rather than just cheap souvenirs and budget stays.

By encouraging longer stays, higher spending on unique cultural experiences, and sustainable travel options, Japan can position itself as a destination for travelers seeking immersion over convenience. The idea is to balance the economic benefits of tourism with the preservation of local life and culture.

Addressing the Future of Tourism in Japan

It is obvious that a new strategy is required as Japan continues to struggle with the problems caused by overtourism. Although the nation’s tourism sector has grown, its infrastructure and communities are starting to suffer from the current trend of overcrowding and budget-conscious travel. An important first step in resolving these issues is the government’s proposed reforms, which include a higher tax on foreign visitors. However, in order to guarantee that both residents and tourists can continue to appreciate the nation’s rich cultural legacy without compromising its long-term sustainability, Japan must prioritise high-quality tourism experiences over quantity going forward.