The number of foreign tourists visiting Japan has hit an all-time high, but this milestone has yet to deliver equal benefits across the country.

Although 70 percent of accommodations and spending is concentrated in major metropolitan areas, Nara and Chiba prefectures, which rank at the bottom for average stay lengths, are struggling to attract overnight visitors.

In the government's aim to establish Japan as a major tourism destination, it set a goal of welcoming 60 million international visitors and achieving 15 trillion yen ($97 billion) in spending in 2030.

The number of overseas visitors to Japan reached 33.37 million between January and November this year, already surpassing the previous annual record of 31.88 million set in 2019 prior to the COVID-19 pandemic.

Spending from January to September totaled 5.85 trillion yen, also exceeding the previous annual record of 5.31 trillion yen set in 2023.

Tourism minister Hiromasa Nakano said at a news conference on Nov. 15 that inbound demand is “very strong” but acknowledged the challenge of “uneven distribution.” 

THE DAY-TRIPPER DILEMMA

Around 70 percent of foreign visitors’ accommodations and spending are concentrated in eight prefectures across Japan’s three major metropolitan areas―Tokyo, Kanagawa, Chiba, Saitama, Aichi, Osaka, Kyoto and Hyogo―leaving regional areas struggling to attract visitors.

According to a 2023 survey on consumption trends of overseas travelers to Japan, the average length of stay for tourism and leisure purposes varies widely by prefecture, with Tokyo at the top with five nights and Nara in last place with just 0.2 nights.

Tokyo hotels are also logging high occupancy rates regarding global tourists.

The Odakyu Hotel Century Southern Tower near Tokyo’s Shinjuku Station recorded a room occupancy rate of 87.9 percent from April to September with international visitors accounting for 88.1 percent of the total.

The rate of foreign guests rose by 6.2 percentage points compared to the same period last year, according to Odakyu Electric Railway Co.’s half-year financial results as of September.

“(The rate of foreign guests) has exceeded levels seen before the COVID-19 pandemic and remains consistently high,” the hotel’s representative said.

However, Nara Prefecture, known for world-famous attractions such as the Great Buddha Hall in Todai-ji temple, has long struggled with low numbers of overnight visitors.

One contributing factor is the limited availability of accommodations, so the prefecture has actively worked to attract luxury hotels to prefecture-owned land.

Since 2020, high-end hotels, such as the international JW Marriott Hotel Nara and the resort hotel Fufu Nara, have opened in the prefecture.

Starting in fiscal 2023, the prefecture launched a subsidy program, offering up to 200 million yen to operators constructing accommodation facilities.

However, according to the Japan Tourism Agency’s accommodation statistics survey, the total number of foreign visitors staying in Nara Prefecture in September was 29,310. This is a roughly 30 percent drop compared to the same month in pre-pandemic 2019.

“The number of accommodations has increased, but occupancy rates still fall short of those in Osaka and Kyoto,” the Nara prefectural official said. “We’ve also heard concerns about labor shortages making it difficult to accommodate guests,”

WHAT'S AROUND NARITA?

Local governments are trying various strategies to attract overseas tourists and encourage them to stay overnight.

Chiba Prefecture, despite being part of a major metropolitan area, has the second-lowest average length of stay in the country, at just 0.3 nights.

The area around Narita Airport is a particular point of focus as it is often only seen as a transit point for Japan-bound tourists, failing to fully capitalize on its potential.

Narita International Airport Corp. and local businesses established a new company, Plus Narita Lab Corp., in March in an effort to change this. They hope to revitalize the area as well as attract foreign tourists through selling local products, and promoting restaurants and tourism-focused opportunities.

Efforts include souvenirs and dining options featuring local specialties such as peanuts and sweet potatoes, as well as developing new products and using a tourism booking site to draw visitors to explore locales around the airport.

“We want to start by showcasing the charm of the surrounding areas, building up local businesses and using the airport as a hub to boost the regional economy," the company’s representative said. 

EYES ON HOKURIKU & CHUGOKU

To the west, Fukui Prefecture has seen its own boost in visitor numbers since the extension of the Hokuriku Shinkansen in March brought bullet trains to the area for the first time. The prefecture also saw the opening of its first international hotel.

According to a prefectural survey based on mobile location data, the Shinkansen extension has led to a rise in the number of overseas tourists.

“But those visitors tend to leave by evening. Getting them to stay overnight remains a challenge,” a prefectural official said.

To enhance support for welcoming tourists from other countries, the prefecture allocated approximately 12 million yen in this fiscal year’s supplementary budget. It has commissioned private companies to create nighttime tourism experiences.

New events, such as watching geisha and "taiko" drum performances while dining, will launch in March next year.

The city of Yamaguchi, which was named one of the “52 Places to Go in 2024” by The New York Times, has been focusing on international promotion as well.

The city set up a promotional booth at an event in New York this year.

However, only about 4 percent of the roughly 288,000 guests who stayed at the 12 accommodations in the Yuda Onsen hot springs in the city between January and October were from abroad.

“We want to raise awareness of the city so that more people will take the extra step to visit us from neighboring Hiroshima,” a city official said.

(This article was written by Takeshi Owada and Yoko Masuda.)