Japan Sets Tourism Record, but Visits from China Plunge

Key Points

• Japan welcomed a record 42.7 million tourists in 2025, with significant increases from Europe, the U.S., and Australia.
• Visits from China dropped sharply in December 2025 due to political tensions, even though China remains a top source market.
• Japan faces growing challenges from labor shortages in its tourism and service sectors as visitor numbers rise.

Summary

Japan achieved a record 42.7 million international tourist arrivals in 2025, surpassing its previous highs and moving closer to its ambitious 2030 goals. While visitor spending also hit a new peak, the country faces significant challenges, particularly a sharp reduction in Chinese tourists due to political tensions and ongoing labor shortages in hospitality and service industries. Despite these issues, strong growth from other markets continues to bolster Japan's tourism sector.