12-08-2025
Japan's tourism boom boosts economy, but locals aren't happy
In 2024, Japan welcomed a jaw-dropping 36.9 million inbound tourists, up 15.6% from the pre-pandemic tourism peak of 2019. But what does that mean to the common man?
Well, in plain terms, Japan's treasury got a healthy US$53bil (RM224.19bil) cash injection, and tourism leapfrogged to become the country's second-largest foreign exchange earner that year.
While the bulk of the international tourists came from South Korea, Hong Kong, and Taiwan, there were also a healthy number of tourists from India, as well as from English- and Spanish-speaking nations too. From the north to the south, these tourists visited almost every prefecture in Japan.
But it's not just the popular tourists hotspots that are getting crowded. These days, local trains, buses, ramen shops, sushi chains, 100 yen knick-knack stores, and even fine-dining restaurants are getting bombarded by visitors.
With its sleek re-development, Osaka's Umeda Station is now surrounded by skyscrapers, top-tier hotels, and shopping complexes.
The good news is that Japan's inbound tourist trend in 2025 still looks fiercely strong – racking up 21.5 million arrivals during just the first half of the year.
Many of my Malaysian friends working as Chinese-speaking guides in Japan have jumped ship to join the English-speaking tour guides instead. Apparently, foreign-language guides are in short supply there, and their fees have tripled.
The cost of everything else – tour buses, driver-guides, hotels, meals – has also increased, rising anywhere from 30% to 150%.
Who says inflation isn't a global phenomenon?
Prices of daily goods are soaring too – and Japan's locals are struggling to make ends meet.
Here comes the big question: How are the locals in Japan, the land of social anxiety and personal space, coping with this 'invasion' of foreign tourists?
Well, the short answer is that they are not happy. Not at all.
During the 27th House of Councillors election held on July 20, the ultra-right populist party Sanseito (which is barely five years old), jumped from having just two seats to a stunning 14 – the biggest upset in the election. To many, it sent a clear message: Japanese society is splitting at the seams.
In April this year, the price of white rice in Japan soared to 4,580 yen for a 5kg bag, and locals are really not happy about that.
What is in Sanseito's playbook? Classic pain point politics – anti-vaccine, anti-foreign labour, anti-immigration, anti-globalism – as well as a 'Japan First' rhetoric.
But the truth is, the signs of chaos were already showing earlier.
Japan had once pinned its hopes on Tokyo 2020 attracting 40 million visitors, but Covid-19 wrecked its plan. Since then, the country's economy has slumped, its population is ageing fast, its birthrate is tanking ... and now the global tourist wave is crashing down hard.
Even rice has doubled in price (currently at around RM35 per kilogram). Is there any wonder the Japanese are fed up?
Four prime ministers have come and gone in five years, while the Agriculture Minister was forced to bow out in disgrace. You could say that the political scene there is on edge.
Facing declining national strength and labour shortages, the government opened the floodgates – bringing in nearly 2.5 million foreign workers (up from under a million a decade ago), including 530,000 Vietnamese. Foreign labour now make up a huge percentage of workers in manufacturing, agriculture, caregiving, tourism and more; even red-light districts have foreign 'employees' now. (I'm not joking!)
Visitors have noticed the lack of locals in certain fields too. Often, you hear them asking, 'I went to a convenience store, an onsen, a restaurant ... where are the Japanese workers?'
That's right. From hotels and restaurants to trains and convenience stores, you will most likely see foreign folks working to serve customers. The 'flavour' of Japan has changed, and its soul feels somewhat diluted. Locals seem to have vanished into hiding.
Sanseito's leader, Munetaka Kamiya, 47, saw it all coming. He capitalised on anti-vaccine conspiracy theories during Covid-19, spun them into anti-immigrant fears, then whipped up outrage over tourist overcrowding – successfully triggering a nationwide 'Japan is being squeezed out' sentiment.
Now it's not just Tokyo, Kyoto and Osaka that's under siege. Even sleepy hot spring towns in the San'in and Sanyo regions are being 'trampled' by tour groups.
And what is the government doing about it?
Damage control, mostly. Raising accommodation taxes, hiking departure taxes, cancelling duty-free systems ... these are 'band-aid' solutions on a gaping wound, I would say.
Meanwhile, Japan's core issues remain: Record-low birthrate, soaring cost of living, a population too tired for intimacy and too anxious to thrive.
Simply put, the Japanese are not happy.
However, as the saying goes, even a sinking ship has three sturdy nails.
Ghibli Park, which opened in November 2022, welcomes around 1.8 million visitors annually.
Despite it all, Japan still has its magic: A harmony of tradition and modernity, cleanliness and safety, four defined seasons, exquisite scenery, divine food, and a weak yen that makes shopping dangerously addictive. These perks will keep the country afloat as a tourism giant, at least, for now.
And this new 'foreign worker society' in Japan? It's actually fine, Japan will be alright. Just look at Malaysia.
As many as seven million migrant workers keep our country running. Even Kuala Lumpur's Jalan Alor and Petaling Street night markets are powered by our Burmese and Nepali friends. At least in Japan, you'll still find Japanese shopkeepers holding the fort at Asakusa or Kyoto's Kiyomizu Temple.
The truth is, Japan wants a slow-paced life, but the world hit the fast-forward button instead.
They wish to hide from the world, but visitors are constantly ringing its doorbell.
So how will this play out? Well, no one really knows. But one thing is certain: Japan in 2025 will not be quiet.
On another note, Malaysia is racing full-speed to improve and develop its tourism sector. But let's not forget to learn from Japan and Spain, where overtourism has become a major problem.
When the tourists come in droves ... trouble may tag along, too.
Remember, prevention is better than cure.
I'm flying off to Japan again soon, this time for the Osaka Expo 2025. Care to join me?
The views expressed here are entirely the writer's own.
Leesan, the globe-trotting traveller who has visited seven continents and 149 countries, enjoys sharing his travel stories and insights. He has also authored six books.
