The Land of the Rising Sun is experiencing a fascinating shift in travel patterns. Once renowned for their enthusiastic overseas adventures, Japanese citizens are choosing to explore the beauty and charm of their own nation.
This change in travel preferences is driven by a combination of factors: the weakening Japanese yen, soaring airfares, and stagnant wage growth. These factors have created a perfect storm, compelling many to opt for domestic travel over international excursions. The numbers speak for themselves – outbound travel in March 2023 was 36.8% lower compared to the same period in 2019. In contrast, Japan witnessed a record number of inbound tourists during the same month.
Domestic Tourism Booms While Overseas Travel Lags
This shift has spurred a revival in domestic tourism, with popular destinations like Kochi, Atami, Okinawa, and Hokkaido experiencing a surge in visitor numbers. This trend is particularly evident during Japan’s annual “Golden Week” holiday period. In response to the rising demand for domestic travel, airlines like Japan Airlines and ANA Holdings are allocating a greater proportion of their seating capacity to inbound tourists and profitable domestic routes.
The government predicts that a significant recovery in outbound travel is unlikely to occur until at least next year.
The Allure of Nostalgia and Affordability
The Hatoya Hotel, a once-popular seaside resort, is experiencing a resurgence in popularity. Located a short distance from Tokyo, Hatoya offers an affordable alternative to the pricey overseas travel options. The hotel’s retro charm, with its 1970s architecture, banquet halls, dinner shows, and aquarium-equipped hot spring, has captured the imagination of Instagrammers seeking a nostalgic escape.
Hatoya’s success highlights a growing preference for affordability and nostalgia among Japanese travellers. The hotel’s President, Shigeru Haraguchi, attributes their resurgence to providing the right blend of price and quality. He expects the hotel to reach an 80% occupancy rate during the upcoming Golden Week holiday period.
The Impact on Japan’s Tourism Industry
This shift in travel patterns has had a notable impact on Japan’s tourism industry. Despite the decline in outbound travel, the surge in domestic tourism has driven domestic spending to pre-pandemic levels, reaching 21.9 trillion yen in 2023. The influx of inbound tourists has also contributed to a surge in hotel prices, reaching their highest levels in three decades.
However, the lack of momentum in outbound travel poses a challenge for major airlines like ANA and Japan Airlines. Analysts are concerned that the airlines may lose international market share due to the decline in outbound travel, despite strong domestic performance. ANA is focusing on maximizing domestic capacity, while Japan Airlines is expressing concern about the potential impact of the weak yen on younger travelers.
A Shift Towards a More Domestic Focus
The current trend suggests that Japanese travellers are embracing a renewed appreciation for their homeland. While outbound travel is expected to recover eventually, it is clear that domestic tourism will continue to play a significant role in Japan’s travel landscape. The surge in domestic travel highlights the enduring allure of Japan’s cultural and natural attractions, while the impact on the airline industry underscores the need for strategic adjustments in response to changing travel preferences.
