How Japan is redesigning tourism to benefit local communities

Overtourism continues to pose a significant challenge in tourist destinations worldwide, and Japan is no exception.

While various measures have been implemented nationwide, addressing the root causes of overtourism requires innovative and sustainable solutions.

In 2024, the number of international visitors to Japan reached approximately 36.87 million, marking a record high and a 47.1% increase compared to the previous year.

In 2023, foreign visitor spending totalled JPY 5.3 trillion, representing a 10.2% increase from 2019, before the COVID-19 pandemic. In response, the Japanese government set a target to welcome 60 million inbound tourists by 2030. In March 2025, Prime Minister Ishiba instructed relevant cabinet ministers to develop a comprehensive plan to achieve this goal.

As international tourism to Japan grows, approximately 73% of overnight stays are concentrated in just five prefectures: Tokyo, Osaka, Kyoto, Hokkaido, and Fukuoka, highlighting a significant geographic imbalance.

According to a survey examining congestion in residential and workplace areas, 59.7% of respondents reported that their residential areas were “crowded” or “somewhat crowded.” Meanwhile, 63.4% said the same about areas near their work. Around 60% indicated that such congestion negatively impacted their daily lives in both places.

The overconcentration of tourists in popular destinations has adversely affected surrounding communities. In Kyoto, a historic city with strong tourism appeal, public transportation has become overcrowded, making it difficult for residents to commute.

Increased accommodation within urban areas has also led to challenges, including noise pollution and waste management. Similar issues associated with overtourism have been reported in Hokkaido and Tokyo.

Overtourism not only undermines the quality of life for residents but also diminishes the overall satisfaction of tourists. To fully leverage the benefits of the increase in visitors, it is essential to promote tourism’s geographical dispersion and maintain high service standards.

New approaches are gaining traction in pursuit of these goals, including public-private initiatives for attracting tourists to less congested areas and systems that provide real-time visibility into crowd levels.

In October 2024, Japan Airlines and Hoshino Resorts collaborated to promote lesser-known regions to inbound tourists. The initiative includes promoting relatively underrecognized “hidden gems” on their websites, Instagram campaigns and package deals that combine Japan Airlines flights with accommodation at Hoshino Resorts’ facilities.

Japan Airlines introduced a campaign in September 2024 to further strengthen regional tourism, offering free domestic flights to international travellers arriving on overseas flights.

This initiative is designed to facilitate the exploration of regions tourists may not have considered otherwise, and mitigate overtourism while contributing to regional revitalization.

Efforts are underway to visualize the congestion levels at popular facilities and regions, enabling travellers to avoid crowded areas and make informed decisions.

In Okinawa, the “Okimeguri” tourism optimization app leverages artificial intelligence to predict congestion at tourist spots using crowd data and weather information from previous years. Travellers can select the date, time, expected weather and location to view estimated congestion levels and event information.

While it does not provide real-time information, this tool allows travellers to assess crowd conditions during the planning stage of their trip, helping to ensure a more comfortable travel experience.

In Hokkaido, Mount Hakodate, known for its panoramic views, has faced challenges with overcrowding at its summit observation deck. In January 2025, Hakodate City implemented a system to visualize congestion to address the issue.

Digital signage is installed at Hakodate Station, allowing real-time tracking of congestion levels at eight locations, including the summit observation deck and the ropeway station leading to the summit. Furthermore, visitors can check congestion levels on their smartphones by scanning a QR code.

Overtourism remains a pressing challenge for the government as well.

In the supplementary budget for fiscal year 2024, Japan’s government allocated JPY 15.82 billion for “Emergency Measures for Preventing and Mitigating Overtourism and Improving the Reception Environment for Foreign Visitors.” It accounts for 15% of the total budget, including fiscal year 2025.

The Japan Tourism Agency is implementing the “Sustainable Tourism Promotion Project through Preventing and Mitigating Overtourism.” This initiative comprehensively supports measures and plans formulated through discussions with local stakeholders.

The project categories include “collecting and analyzing crowd data” and “visualizing congestion levels.”

In 2025, selected projects include the “Development of a Plan and Building a System for Dispersing Foreign Tourists within Kumamoto Prefecture,” receiving grants of up to JPY 80 million and aiming to alleviate overtourism through locally driven initiatives.

While the increase in tourists benefits regional economies and the tourism industry, the concentration of tourists in specific areas poses risks to both the local quality of life and tourists’ overall travel experience.

Addressing these challenges requires initiatives to promote the dispersal of visitors. Japan’s public-private partnerships to mitigate overtourism allow tourism to be directed to lesser-known areas while enabling crowd avoidance mechanisms that benefit regional economies, residents and travellers alike.

These efforts contribute to the sustainable development of the tourism industry and provide a vision to reinforce societal resilience and support inclusive economic growth.