Japan’s Luxury Travel Boom Is Outpacing the Global Market
Luxury now accounts for nearly one in five tourism dollars spent in Japan.
Photo: Tianshu Liu / Unsplash
Japan’s inbound luxury travel market is surging past pre-pandemic benchmarks—by a wide margin.
According to new data from the Japan National Tourism Organization (JNTO), luxury travel spending in Japan increased by 50.6% from 2019 to 2023, outpacing the global growth rate of 17.6%. Even more impressive, the number of luxury travelers increased by 83.2% during the same period, despite the country’s overall visitation remaining below pre-COVID levels.
The weak yen has undoubtedly made Japan more attractive to high-net-worth travelers, particularly those from the U.S., Australia, and the Middle East. But currency isn’t the only story here. JNTO’s strategy has also shifted: The organization is targeting affluent travelers not just with marketing, but with product development, partnering with overseas luxury-focused agencies and expanding regional experiences to meet demand beyond the main destinations of Tokyo and Kyoto.
That bodes well for travel advisors looking to differentiate client itineraries. Experiences rooted in regional culture, such as private temple access in Nara, hyper-seasonal dining in Toyama, or contemporary art immersion on Naoshima, are not only easier to book but also more sought after by a post-pandemic luxury clientele that values exclusivity, authenticity, and space.
China, the U.S., and Taiwan led the way in 2023, accounting for over half of Japan’s inbound luxury spend. But growth isn’t limited to these feeder markets. Countries like Thailand and South Korea also saw a rise in high-spending visitors, indicating a broader shift in travel behaviors across the Asia-Pacific region.
Importantly, luxury now accounts for 19.1% of all international tourism spend in Japan, up from 14% in 2019. That’s a clear signal that the segment is gaining traction, even as Japan’s total international arrivals in 2023 remained 21% below 2019 levels. In other words, it’s luxury leading Japan’s tourism recovery.
With demand intensifying, especially ahead of Japan’s peak spring and autumn seasons, early planning and supplier relationships will be key for delivering one-of-a-kind client experiences. It also underscores the importance of considering areas beyond flagship cities. After all, new insights show that clients are increasingly willing to trade marquee destinations for curated, immersive moments elsewhere.
