Skip to content

Experiences-Based Travel Stimulates Foreign Investment in Japan

Foreign tourists display shifting spending habits, prompting efforts to improve their experiences in Tokyo, as reported on July 17 by Jiji Press.

Japan's experiential tourism attracts substantial foreign spending
Japan's experiential tourism attracts substantial foreign spending

Experiences-Based Travel Stimulates Foreign Investment in Japan

In a significant shift for Japan's tourism industry, foreign visitors are increasingly moving away from purchasing luxury goods and towards experience-based tourism and value-added accommodation services. This trend was highlighted by the record-breaking 21.5 million foreign visitors who travelled to Japan in the first half of 2025, marking the fastest pace ever to surpass the 20-million mark [1][3].

According to recent data, total tourist consumption increased during this period, with April-June 2025 seeing a 18.0% year-on-year rise to approximately 2.5 trillion yen. However, the proportion of shopping expenses, particularly luxury items like brand bags, has significantly decreased [1]. Tax-free sales at department stores fell about 40% in May 2025 compared to the same month the previous year, indicating a decline in interest in luxury shopping among inbound travelers [1].

The trend suggests that foreign visitors are placing greater value on immersive, local experiences over material purchases. Enhancing experience-based tourism, such as cultural activities, local tours, and unique experiential offerings, is considered crucial to further stimulate inbound spending [1].

Simultaneously, there is a rising emphasis on value-added accommodation services. Visitors are increasingly seeking accommodations that offer more than just lodging, such as themed stays, personalized services, wellness features, or integrated cultural experiences, aligning with their broader interest in enriching travel experiences [1].

Chinese visitors remain a significant source of inbound spending, contributing over 20% of total expenditures. However, even within this segment, experience and service innovation are becoming vital to capture demand [3].

This strategic shift in spending patterns signals a need for tourism marketing and product development to cater to evolving visitor preferences [1][3]. The impact of these changes on the overall tourism industry in Japan was not addressed in the provided information.

Photographs of unique travel experiences, such as cultural activities and local tours, may become increasingly popular as foreign visitors prioritize enriching experiences over material purchases. Finance-wise, travelers might allocate more of their budget towards accommodations offering themed stays, personalized services, wellness features, or integrated cultural experiences.

Read also:

    Latest