June 15, 2023

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has Set a Target of 200,000 Yen per Inbound (Foreigner Visiting Japan) Consumption by 2025

MLIT has shifted the emphasis of its tourism policy from "quantity" to "quality," including attracting wealthy foreign visitors and extending the length of their stay.

The proposal is to increase the number of nights per person in inbound tourism by 10 percent from the 2019 results to 1.5 nights by 2025 (excluding the three major metropolitan areas). MLIT targeted a total number of visitors to Japan to exceed the 2019 level of 31.88 million. Per capita spending was 159,000 yen in 2019, targeting to increase by 25% by 2025.

In addition to easing visa requirements and promoting cashless payment, the program will also support developing and promoting content that conveys the appeal of tourism in Japan. To attract visitors to rural areas, it envisions utilizing the historical resources of each region and devising products that allow visitors to stay in farming, mountain, and fishing villages.

It is also committed to "sustainable tourism" that considers diversity and sustainability, an essential theme in Europe and the United States. The company will strengthen its appeal to wealthy people, especially in Europe and the United States, by providing content that leads to the preservation of nature and culture.

On the one hand, business revitalization is also urgent. Labor productivity in Japan's tourism and lodging industry is low, and the business environment is challenging due to declining consumption during the prolonged COVID-19 pandemic. There is also a growing need for more labor. In addition to setting forward-looking targets, practical measures to support the industrial base will be necessary.