Japanese Opt for Domestic Travel as Outbound Tourism Lags Amid Economic Factors

Japanese outbound travel continues to be dampened by economic factors, including a weaker yen, high airfares, and stagnant wage growth, resulting in a 36.8% decline in March compared to pre-pandemic levels. Amid Golden Week, domestic destinations like Kochi and Atami are popular, fueling a rebound in local tourism spending and pushing hotel prices to levels not seen in three decades. Airlines like Japan Airlines and ANA Holdings are adjusting seat allocations to cater to inbound travelers and profitable regions. However, the lack of momentum in outbound tourism poses challenges for airlines, risking international market share loss. Efforts to encourage overseas travel include urging passport acquisition, potential fee reductions, and airline subsidies. Despite current constraints, optimism remains for a recovery in outbound tourism, especially among younger travelers, with bookings already seen for future periods.