Japan’s New Budget Aims to Combat Over-Tourism and Promote Regional Tourism, Get the Details Here

Published on December 12, 2025

The Japanese government has sanctioned a large supplementary budget worth 22.5 billion yen for the Japan Tourism Agency (JTA) within fiscal year 2025. The budget and these measures target several key challenges existing within the sector, including over tourism, as well as working towards a better tourist experience and developing Japan’s tourism infrastructure. All projects included within the budget seek not only to safeguard the life of locals but are also meant to build and develop a substantial value-added tourism sphere.

Countering Over-Tourism: Prioritizing Local Communities and Sustainable Practices
A major component of the fiscal 2025 supplementary budget is the 6.8 billion yen allocated for over-tourism countermeasures. This initiative aims to address the strain that excessive tourism can place on local communities, resources, and infrastructure. The JTA is focusing on creating an environment that welcomes tourists without compromising the quality of life for residents.

Key actions under this plan include improving services for tourists traveling with large luggage, extending cashless payment systems, and introducing Japan’s version of ride-sharing to facilitate smoother and more sustainable transportation. Additionally, the JTA plans to use digital technologies to better manage tourist transportation, ensuring a more efficient and environmentally friendly travel experience. These measures are designed to balance the influx of tourists with the preservation of local culture, safety, and community wellbeing.

By implementing these changes, the JTA aims to create a more sustainable flow of tourists that supports local economies without overwhelming them. This initiative is critical in ensuring that Japan’s tourism growth does not come at the expense of its cultural heritage or the wellbeing of its citizens.

Encouraging Foreign Visitors to Explore Beyond Major Cities
Another key focus of the supplementary budget is to encourage more foreign visitors to explore regions outside of Japan’s major cities. The JTA has allocated 880 million yen for this initiative, which includes promoting medical insurance for visitors before their trip and providing multilingual information on topics such as bear sightings and emergency response procedures.

To enhance the overall visitor experience, the budget also includes provisions to improve emergency response functions at tourist facilities and ensure that cashless payment options are available at medical institutions. By facilitating better access to essential services and information, the JTA aims to make visiting remote areas easier and more appealing for tourists, while also improving safety and convenience for all travelers.

Tackling the Issue of Illegal Short-Term Rentals
The JTA has also allocated 40 million yen to tackle the issue of illegal short-term rental services, which have become a growing concern in popular tourist areas. The budget will fund a study to explore ways to improve Japan’s short-term rental operation system. The goal is to ensure that all accommodations meet local regulations and safety standards, providing a safer and more reliable experience for tourists.

Addressing illegal short-term rentals will help maintain the quality of Japan’s hospitality sector, ensuring that visitors can access legitimate, regulated accommodations that offer high standards of comfort and security. This initiative is part of Japan’s broader strategy to regulate and support its tourism infrastructure while minimizing the potential negative impacts of unregulated rentals.

Fostering Tourism Diversity: Supporting Local Communities with New Content
At 4.9 billion yen, the JTA is investing in the development of new tourism content that caters to a wider range of interests and diverse visitor demands. By leveraging local resources, the JTA aims to promote regional tourism attractions and diversify offerings for inbound tourists. This includes creating higher-priced optional tours that focus on exclusive experiences, as well as ensuring effective information dissemination and sales channel development.

This investment is particularly important for boosting local economies, as it encourages tourists to explore lesser-known destinations beyond the traditional attractions in major cities. By fostering a more diverse tourism landscape, Japan can offer unique and personalized travel experiences while spreading the economic benefits of tourism across the country.

Making Tourism Accessible to All: Universal Design and Barrier-Free Travel
With a 4 billion yen investment in universal tourism, the JTA is committed to ensuring that tourism facilities and accommodations are accessible to all visitors, including those with disabilities. This initiative supports the installation of barrier-free equipment in tourist areas, making Japan a more inclusive destination for travelers with varying needs.

By improving accessibility, Japan is not only enhancing the experience for those with disabilities but also expanding its tourism market. A more inclusive tourism environment ensures that everyone can enjoy the rich cultural and natural offerings that Japan has to offer, creating a more welcoming and equitable travel destination.

Boosting Tourism Workforce and Training
At 2.6 billion yen, the JTA is also focusing on addressing the shortage of workers in the tourism industry by supporting training programs and enhancing workforce operations. This funding will help tourism operators manage staffing shortages and improve service quality, ultimately ensuring that Japan can meet the growing demand for tourism services. By investing in human resources, Japan is strengthening its tourism infrastructure and preparing for long-term growth in the industry.

Preparing for the Future: New Duty-Free Refund System
Finally, the JTA is preparing for the implementation of a new refund duty-free system, set to begin in November 2026. The JTA will use some of its budget to promote this new system, which will provide greater convenience for international shoppers. The introduction of this system is expected to enhance the shopping experience for tourists and contribute to the overall growth of Japan’s retail and tourism sectors.

A Sustainable Future for Japanese Tourism

For the Japan Tourism Agency, Japan’s fiscal 2025 supplementary budget reflects both a forward-looking strategy that balances immediate problems of over-tourism with preparing the industry for future growth. In balancing the needs of tourists and local communities, further afield regional exploration, and enhancing access, it lays the foundation for a more sustainable, inclusive tourism industry.