Published on
August 20, 2025
Japan has seen a boom in tourism in 2025, with the nation hosting 21.5 million international travelers in the first half of the year—a 21% rise from last year. This is stimulated by Japan’s natural and cultural tourist attractions, strong depreciation of the yen, and increasing low-cost carrier flights from nearby Asian nations. When the yen fell to approximately 1,000 yen for US$6.78, Japan became cheaper for foreign visitors, stimulating an inflow of tourists.
Japan Sees Record Tourist Arrivals but Faces Overtourism Challenges
This boom of tourism in Japan has raised concerns about overtourism, with crowding at popular sites and strain on infrastructure becoming major issues. While tourism is a key economic contributor, it has led to difficulties in balancing cultural heritage preservation and maintaining residents’ quality of life. To address these challenges, Japan has introduced new measures designed to curb overcrowding and protect its cultural and natural resources.
Japan’s Tax-Free Shopping Overhaul
In a bid to streamline the shopping experience and reduce abuses of the current tax-free system, Japan will be overhauling the tax exemption process for tourists. From November 1, 2026, tourists will no longer be able to receive immediate tax exemptions when making purchases. Instead, they will pay the consumption tax at the time of purchase and will need to claim refunds at airport counters before departure. The overhaul is designed to address the growing issue of bulk shoppers, especially from markets like China, Thailand, and Malaysia, who have been using the current tax-free scheme excessively.
This reform is part of Japan’s broader effort to better manage the increasing number of visitors, reduce tourist exploitation, and ensure that the tourism benefits are spread more evenly across the economy.
Dual Pricing System to Regulate Visitor Numbers
To alleviate pressure on popular tourist destinations, Japan has implemented a dual pricing system for foreign visitors. Starting in July 2025, foreign visitors will face higher entry fees at museums, temples, ski resorts, and other tourist attractions. Prices have been raised by 30% to 100%, with the additional revenue intended for site maintenance and improvements. The dual pricing system is part of an effort to ensure that local communities are not overwhelmed and that the most popular destinations, such as Mount Fuji, which has seen a sharp rise in visitors, can be managed more sustainably.
By raising prices, Japan aims to regulate visitor numbers, especially at locations that are at risk of being overcrowded. For instance, Mount Fuji now has daily visitor caps in place to minimize environmental damage and ensure a sustainable tourism experience. The hope is that the pricing system will not only reduce the burden on these destinations but will also improve the overall tourist experience.
Visitor Caps and Future Visa Pre-Approval for Popular Sites
One of the most significant changes in Japan’s tourism policy is the introduction of visitor caps at certain attractions. Popular sites like Mount Fuji now have strict daily limits on the number of visitors allowed. This measure is part of Japan’s ongoing efforts to preserve the environment and protect its cultural heritage from the negative impacts of overtourism.
Additionally, by 2028, travelers from 71 countries that are currently visa-exempt, including the US, UK, Australia, and most of Europe, will need to apply for pre-arrival authorization through Japan’s new Japan Electronic System for Travel Authorization (JESTA). This system, similar to those used by the US and European Union, is designed to help manage visitor flows and ensure that tourists are properly vetted before arrival. This will also help Japan better control the number of visitors arriving in the country and encourage more responsible travel.
Focus on Sustainable Tourism
These measures reflect a fundamental shift in Japan’s approach to tourism—moving away from focusing solely on visitor numbers to prioritizing sustainability and quality experiences. By introducing visitor caps, dual pricing, and the JESTA system, Japan is laying the foundation for long-term tourism sustainability.
The Tourism Strategy 2030, which aims to double the number of international visitors by 2030, will focus on creating a more sustainable and balanced tourism industry. The emphasis on eco-friendly practices, cultural preservation, and local community involvement will be key in ensuring that the tourism sector remains a vital economic contributor without overburdening Japan’s cherished landscapes and cultural assets.
Shaping the Future of Japanese Tourism
As the tourism sector of Japan keeps on expanding, the government is taking active measures to control overtourism challenges. Through the deployment of measures like dual pricing, tourist caps, and pre-arrival approval, Japan is setting itself up as a role model for sustainable tourism. The nation is maintaining tourism as a key economic growth driver while protecting the natural and cultural attractions that attract millions of foreigners from across the globe. Through these reforms, Japan is establishing a well-balanced and sustainable tourism model that will benefit tourists and locals alike for many years to come.
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