Contents
1. Introduction: The Impact of COVID-19 on Japan’s Tourism
The COVID-19 pandemic had a profound and immediate impact on Japan’s tourism industry. Before 2020, Japan was experiencing a booming tourism market, welcoming a record-breaking 31.9 million international visitors in 2019. With the Tokyo Olympics approaching, the country had ambitious goals to attract even more travelers. However, the sudden global spread of the coronavirus brought international travel to a near halt.
In early 2020, Japan imposed strict border controls, significantly reducing the number of inbound tourists. According to the Japan National Tourism Organization (JNTO), the number of foreign visitors plummeted by over 87% in 2020 compared to the previous year. Major cities like Tokyo, Kyoto, and Osaka, which heavily relied on foreign tourists, saw a dramatic decline in business activities. Hotels, travel agencies, local tour operators, and cultural sites all suffered financially, leading to widespread layoffs and temporary closures.
Economically, the pandemic resulted in an estimated loss of approximately 4.5 trillion yen (around 41 billion USD) in tourism revenue in 2020 alone. Local economies in rural areas, which had recently begun to benefit from the influx of international tourists, were particularly hard-hit. The government had to quickly devise strategies to mitigate these losses and support struggling businesses.
Domestic tourism also faced a significant downturn as state-of-emergency declarations and travel restrictions discouraged internal movement. Popular sightseeing spots that were once crowded with both foreign and local tourists became eerily empty. Traditional events, festivals, and cultural performances were canceled or shifted to online formats, further impacting the tourism ecosystem.
Despite these challenges, the pandemic also provided an opportunity for reflection and reevaluation within Japan’s tourism sector. Industry stakeholders began to recognize the vulnerabilities of over-reliance on international visitors. Efforts to diversify tourism offerings, promote domestic travel, and invest in sustainable and digital tourism experiences gained momentum during this time.
As the world gradually reopens, Japan’s tourism industry is leveraging the lessons learned during the pandemic to build a more resilient and adaptable future. Understanding the depth of COVID-19’s impact is crucial to appreciating the remarkable recovery story that follows.
2. Immediate Challenges and Industry Response
As COVID-19 rapidly spread across the globe, Japan’s tourism industry faced unprecedented challenges almost overnight. The immediate cessation of international travel led to widespread cancellations of hotel bookings, flight reservations, and tours. Small and medium-sized enterprises (SMEs), which form the backbone of Japan’s tourism sector, were particularly vulnerable. Many inns (ryokan), local restaurants, and souvenir shops were forced to shut down temporarily or permanently due to a lack of visitors and severe cash flow problems.
One of the major challenges was maintaining employment. Tourism-related jobs account for a significant portion of the workforce, especially in regions like Okinawa and Hokkaido. Without tourists, thousands of workers faced layoffs or reduced working hours. According to government estimates, the tourism sector saw revenue losses of approximately 5.5 trillion yen (around 50 billion USD) during the initial phase of the pandemic.
In response, both the government and private sector quickly implemented measures to mitigate the damage. The Japanese government introduced emergency subsidies and grants to help tourism businesses stay afloat. Programs such as the “Employment Adjustment Subsidy” were enhanced to support companies in retaining staff by covering a portion of their wages. Additionally, low-interest loans and financial aid packages were made available for struggling businesses.
The tourism industry itself also pivoted to adapt to the new reality. Hygiene and safety became top priorities. Hotels, airports, and attractions invested in enhanced sanitation protocols, contactless technologies, and social distancing measures. Virtual tours and online cultural experiences gained popularity, allowing businesses to maintain engagement with customers even when physical visits were impossible.
Another notable industry response was the promotion of domestic travel. With international visitors absent, efforts such as the “Go To Travel” campaign encouraged Japanese residents to explore their own country. This initiative provided significant discounts and travel vouchers to boost local tourism, though it was met with mixed reactions due to concerns about virus spread.
Despite the severity of the situation, these early responses laid the foundation for a more resilient tourism sector. By addressing immediate challenges head-on and embracing innovation, Japan’s tourism industry positioned itself for a stronger recovery once global travel resumed.
3. Government Support and Recovery Initiatives
Recognizing the catastrophic impact of COVID-19 on the tourism industry, the Japanese government launched a series of support measures and recovery initiatives to stabilize the sector and lay the groundwork for future growth. One of the most significant initiatives was the “Go To Travel” campaign, which began in July 2020. This government-subsidized program aimed to stimulate domestic travel by offering discounts of up to 50% on transportation, accommodation, dining, and shopping expenses. The program, with a budget allocation of approximately 1.35 trillion yen (about 12.3 billion USD), provided a much-needed lifeline to local businesses and tourism operators across Japan.
In addition to domestic travel incentives, the government provided direct financial support to tourism-related businesses. Small and medium-sized enterprises could apply for subsidies to cover operating expenses, and special low-interest loans were made available through financial institutions. These efforts helped many businesses avoid bankruptcy during the toughest periods of the pandemic.
To further bolster recovery, the Japan Tourism Agency introduced the “New Travel Style” initiative, promoting safe and responsible travel practices. This campaign emphasized social distancing, mask-wearing, and hygiene standards at tourist destinations, helping to rebuild traveler confidence.
On the international front, the Japanese government prepared for the eventual reopening of borders by upgrading infrastructure and enhancing the overall travel experience. Investments were made in digital transformation projects, such as touchless check-ins at airports and hotels, multilingual information systems, and AI-powered customer service tools. The focus was not just on quantity but also on improving the quality and safety of travel experiences for future visitors.
Local governments also played a crucial role in recovery efforts. Regional promotional campaigns highlighted lesser-known destinations to disperse tourist traffic and reduce the risk of overcrowding. For example, prefectures like Tottori and Shimane, which had relatively low COVID-19 infection rates, actively promoted their natural attractions and outdoor activities as safer travel options.
Overall, the combination of financial assistance, strategic campaigns, and infrastructure upgrades demonstrated a comprehensive approach by the Japanese government to revitalize the tourism industry. These initiatives not only addressed the immediate crisis but also positioned Japan to emerge stronger and more competitive in the global tourism market post-pandemic.
4. New Trends in Post-Pandemic Tourism
The COVID-19 pandemic has fundamentally changed the way people travel, and Japan’s tourism industry has adapted to reflect these new trends. As restrictions eased and borders reopened, both domestic and international tourists began seeking experiences that prioritize safety, sustainability, and personalization.
One of the most noticeable trends is the increased demand for nature-based and rural tourism. Rather than crowding into urban centers like Tokyo and Osaka, travelers are now more interested in visiting remote areas such as Hokkaido, Okinawa, and the Japanese Alps. These destinations offer outdoor activities like hiking, cycling, and hot spring retreats, allowing tourists to enjoy their trips while maintaining social distance. Local governments have capitalized on this trend by promoting eco-tourism packages and cultural immersion experiences.
Another significant shift is the rise of “workation” — a combination of work and vacation. With remote work becoming a standard option for many companies, Japan saw a surge in people relocating temporarily to scenic areas to work while enjoying a change of environment. Regions like Nagano and Wakayama began offering special long-stay programs, complete with high-speed internet and coworking spaces, to attract these remote workers. This trend provided an economic boost to rural areas and diversified Japan’s traditional tourism model.
Health and safety have also become critical factors in travel planning. Many accommodations now highlight their sanitation measures, offering contactless check-ins, online reservations, and even private dining options. The government’s investment in digital transformation, including cashless payment systems and AI-based multilingual customer service, has significantly improved convenience and traveler confidence.
Sustainability is another key theme emerging from the pandemic. Travelers are increasingly mindful of their environmental impact, prompting Japan’s tourism operators to implement green initiatives. Efforts include promoting local consumption, reducing plastic waste, and supporting traditional industries and crafts. Programs such as “Sustainable Travel in Japan,” supported by the Japan National Tourism Organization (JNTO), aim to educate visitors on responsible tourism practices.
Financially, the trend toward smaller group travel and customized experiences has changed pricing models. While the average cost of tours and accommodations has risen slightly — sometimes by 10–20% — visitors appreciate the higher quality and more personalized service. As of 2024, some rural travel packages cost approximately 30,000 yen (around 275 USD) for two-day stays, reflecting the new focus on exclusive and meaningful experiences.
These new trends demonstrate a resilient and innovative shift within Japan’s tourism industry. By embracing changes in traveler preferences, Japan is not only recovering from the pandemic but also setting new standards for the future of travel.
5. Future Outlook: Sustainable Tourism in Japan
As Japan’s tourism industry continues to recover from the impact of COVID-19, sustainability has emerged as a key focus for its future development. The government, local communities, and businesses are collectively shifting their strategies toward creating a tourism model that is both environmentally responsible and economically resilient.
One of the main pillars of Japan’s sustainable tourism future is the promotion of lesser-known destinations. Rather than concentrating visitors in already popular cities like Tokyo, Kyoto, and Osaka, efforts are being made to disperse tourist traffic to rural and regional areas. Prefectures such as Tottori, Kochi, and Akita are gaining attention for their natural beauty, traditional culture, and outdoor experiences. This approach not only alleviates the pressure on major cities but also revitalizes local economies that were hit hard by the pandemic.
Eco-friendly travel practices are also being encouraged at all levels. Tourism operators are increasingly adopting green certifications, such as the “Eco Mark,” and investing in sustainable infrastructure. Many hotels and ryokan now offer environmentally friendly options, such as reduced plastic use, energy-saving facilities, and farm-to-table dining experiences that support local agriculture.
The Japanese government has committed significant resources to promoting sustainable tourism. Programs like the “Sustainable Tourism Promotion Project,” with funding exceeding 10 billion yen (around 91 million USD), support local initiatives aimed at preserving cultural heritage, protecting natural environments, and educating visitors about responsible travel behaviors. Training programs for hospitality workers also emphasize sustainability principles to ensure a consistent, high-quality visitor experience.
Technology plays a crucial role in Japan’s sustainable tourism vision. Smart tourism solutions, including AI-driven crowd management systems and real-time tourist flow monitoring, are being deployed to reduce congestion at popular sites. Cashless payment systems and digital tourist passes further enhance convenience and reduce environmental footprints.
Looking ahead, Japan aims to position itself as a global leader in sustainable tourism. The long-term goal is to balance the needs of tourists, local communities, and the environment. By 2030, Japan hopes to increase the percentage of tourists visiting rural areas to over 60%, and to ensure that tourism contributes significantly to the achievement of the United Nations’ Sustainable Development Goals (SDGs).
With a clear focus on sustainability, innovation, and regional revitalization, Japan’s tourism industry is not simply aiming to return to pre-pandemic levels — it is striving to build a more balanced, inclusive, and resilient future for all stakeholders involved.
