Japan tourism figures show Australians are flocking to 'the new Bali'

Last year, nearly one million Australians traveled to Japan, marking a bumper year for the Japanese tourism industry with a 50% increase in visitor numbers. In 2024, Japan hosted 36.87 million tourists, surpassing the previous annual record of 31.9 million set in 2019.

The number of Australian tourists also increased significantly, reaching 920,200 last year, compared to 613,062 in 2023. Dr. Shiro Armstrong, director of the Australia-Japan Research Centre at the Australian National University, stated that Australia's performance in tourism to Japan was outstanding and far exceeded expectations. "From 2023 to 2024, Australian tourist numbers to Japan increased by 50%, reaching 920,200, which is a significant rise."

Dr. Armstrong also pointed out that Australian accents are frequently heard in Tokyo, and many bars and restaurants have become accustomed to serving Australians. “Eating out in Japan is very affordable compared to Australia, because of lower labor costs. Japan has just emerged from decades of mild deflation, with prices barely changing since the Japanese asset bubble burst and the high-growth era ended in 1990. And, of course, the food in Japan is very good,” he added. He also mentioned that while tourist traffic used to mainly consist of Japanese tourists traveling to Australia, this trend has reversed since before the COVID-19 pandemic due to Japan's stagnant economy and the weak yen, and this trend is becoming more pronounced.

Dr. Armstrong, who is currently vacationing in Japan, said he has seen a large number of Australians during his trip. “I’ve just finished three days of skiing and have heard Australian accents all the time, including many ski school instructors.” He also mentioned that “flights between Australia and Japan are currently full, and ticket prices are very expensive.” Wanpei Ao, general manager of TokudAw Travel, stated that winter tourists are going to lesser-known ski resorts in Japan compared to previous years. “We are seeing a lot of tourists from Australia,” he said, “They tell us that coming to Japan is like the new Bali for them.”

Japanese authorities have previously warned about the issue of "overtourism," where a region attracts too many tourists, making life unpleasant for local residents, despite possible economic or other apparent benefits. Mr. Ao believes that the weak yen is partly responsible for attracting thousands of tourists to Japan. The current exchange rate is about 97 Japanese yen to 1 Australian dollar. The Japan National Tourism Organization said that tourism spending is now Japan's second-largest export sector, behind only automobiles and ahead of electronic components.

Dr. Armstrong also believes that the weak yen is a major factor in Japan's tourism boom. "Japan has been working for more than a decade to attract more foreign tourists, increasing signage in multiple languages, increasing the use of credit cards (not just cash), and improving accessibility," he said. "The weak yen is largely due to the Bank of Japan (the Japanese central bank) having lower interest rates than other developed economies because it has not experienced high inflation after COVID, so many investors can get better returns abroad, reducing demand for the yen."

According to preliminary data released by the organization, tourists spent approximately A$83 billion in 2024, more than double the previous year. Tourism industry consultant Teppei Kawanishi said that the increase in spending was encouraging. “Not only are the number of tourists increasing, but the amount they are spending is also increasing, which is a positive sign,” he said. The number of visitors in December also reached a record high for a single month, at 3.49 million. The Japan National Tourism Organization said that the December figures were driven by school holidays and holiday-related demand in many markets.