Japan Travel Boom Drives Record-Breaking Growth, Skyrocketing Spending, and Long-Haul Surge for New Year Tourism

Published on December 10, 2025

Japan travel market is set to experience a record-breaking surge this New Year, driven by unprecedented growth, skyrocketing spending, and a significant increase in long-haul travel. As the number of travelers rises, so does their spending, with tourists embracing both domestic and international destinations. The shift toward longer trips, especially to far-flung locations like Hawaii, Europe, and the U.S., highlights a growing demand for unique and immersive travel experiences. Despite economic challenges such as the weakened yen and rising prices, Japanese tourists are prioritizing travel, making this holiday season one of the strongest in recent years.

Domestic Travel to Thrive Amidst Economic Challenges

The forecast suggests a steady growth in domestic travel, with the number of travelers expected to increase by 2% to 38.7 million. The total domestic expenditure is predicted to rise by 4.3% to 1,710 billion yen. This uptick in spending indicates that despite challenges like a weak yen and inflationary pressures, Japanese consumers are still willing to invest in their local travel plans.

Domestic travel costs are also on the rise. The average spend per traveler is expected to hit a record-high 44,000 yen due to rising prices for accommodation and transport. Despite the financial pressures, many Japanese are continuing their travel plans, particularly for the New Year holiday, signaling a strong desire to maintain these annual traditions.

Family travel remains the primary reason for domestic trips, with 45.4% of travelers citing family bonding as their main motivation. Meanwhile, 29% of travelers are seeking relaxation. The overwhelming preference for driving also highlights the country’s inclination toward short-distance travel, with 53.1% of domestic travelers opting to use their own cars.

Okinawa remains a top choice for domestic tourists, bolstered by the recent launch of the JUNGLIA OKINAWA theme park in July 2025. Tokyo and the Kansai area continue to attract visitors, offering a blend of cultural experiences and modern amenities that appeal to travelers of all types.

International Travel: A Shift Towards Long-Haul Destinations

While domestic travel sees growth, international travel is expected to experience a much more significant surge. With international travelers expected to increase by 31.5% to 1 million, the total consumption on outbound travel will jump by 42.9%, reaching 275.8 billion yen.

One of the key drivers of this increase is a growing interest in long-haul destinations. While short-haul locations like South Korea have seen a slight decline, more Japanese travelers are opting for extended vacations to destinations such as Hawaii, the U.S., and Europe. The average spend per international traveler is forecasted to rise to 275,000 yen, reflecting an 8.7% increase compared to the previous year. This surge in expenditure is largely driven by longer stays, with travelers increasingly booking trips of four to six nights.

Hawaii continues to top the list of international destinations, attracting 10.6% of travelers, followed closely by Europe at 10.5%. Australia and New Zealand also remain popular, drawing 8.9% of outbound tourists. This preference for longer trips and more immersive travel experiences highlights a shift in consumer behavior, with Japanese travelers opting for more enriching, extended holidays abroad.

Polarization in the Travel Market: Smart Spending vs. Exclusive Experiences

Amid economic uncertainty, Japan’s travel market has become increasingly polarized. On one hand, many travelers are looking for ways to cut costs, often seeking out sales, coupons, and budget-friendly options. On the other hand, there’s a growing demand for unique, once-in-a-lifetime experiences, such as private events, special access to attractions, or limited-time travel packages.

This split reflects the broader economic climate, where some are tightening their belts while others are splurging on exclusive experiences. This shift in consumer preferences has led to a market where travel agencies are catering to both ends of the spectrum—offering budget-conscious deals alongside high-end, bespoke travel packages designed for those willing to spend more on special experiences.

The future of the Japanese travel market may well involve a delicate balance between offering affordable options for the cost-conscious and premium services for those looking for something unique and unforgettable.

Japan travel market is set for record-breaking growth this New Year, with skyrocketing spending and a surge in long-haul trips to destinations like Hawaii, Europe, and the U.S., despite economic challenges. Tourists are prioritizing unique, extended vacations, making this holiday season one of the strongest yet.

Looking Ahead: Bright Prospects for Japan’s Travel Industry in 2025-2026

As the New Year holiday approaches, Japan’s travel market is poised for growth. The combination of increased domestic and international travel, alongside a shift toward longer trips and more exclusive experiences, suggests that the tourism sector will thrive, even in the face of economic challenges.

For domestic travel, the forecasted growth in spending and travelers indicates that popular destinations such as Okinawa, Tokyo, and Kansai will continue to dominate the market. Meanwhile, international travel is experiencing a boom, with destinations like Hawaii, Europe, and Australia drawing increasing numbers of Japanese tourists.

As both domestic and international travel experiences evolve to meet the demands of a polarized market, Japan’s tourism sector remains resilient, with total consumption set to reach new heights in the 2025-2026 New Year holidays. The travel industry is ready to thrive, with travelers eager to explore both local and global destinations, making 2025 a banner year for tourism in Japan.