The outbound tourism landscape in Japan is expected to grow at a CAGR of 27.1% during the projected period. The ecosystem value is projected to increase from USD 5,271.0 million in 2023 to USD 57,856.2 million by 2033. The Japan outbound tourism revenue was valued at USD 3,670.0 million at the end of 2022.
The demand for outbound tourism in Japan is expected to grow steadily during the forecast period. This is due to several factors, including the favorable tropical climate, year-round sunshine, and a wide range of stunning and picturesque locations. As the economy grows in Japan and disposable incomes rise, more citizens have the financial means to travel internationally. This enables them to explore new destinations and engage in leisure and business travel activities.
Japan is becoming more diverse, with a growing population of immigrants and people of different ethnic backgrounds. This has led to a greater interest in exploring heritage and cultural tourism, including trips to ancestral homelands and destinations with cultural significance.
The government in Japan is committed to promoting outbound tourism and is working to address challenges faced by this regional business front. In addition, the growing demand for leisure travel, the shift towards shorter, more frequent trips, and the increasing interest in emerging destinations are all positive trends for sales of outbound tourism in Japan.
The key growth drivers are the rising demand for authentic and personalized travel experiences, driven by rapid urbanization and growing disposable income. The impact of social networks and economical airline tickets cannot be understated.
Travel companies are also launching websites that are fast, accessible, and easy to use on smartphones. These services offer peer reviews, 360-degree video tours, and straightforward price comparisons, making it easier for travelers to plan and book vacations online. This brings profit prospects to the company, along with the growing Internet penetration, and allows them to expand their business.
Key players are partnering with companies to attract high-value customers through Internet marketing, helping to surge demand for adventure travel worldwide. Government organizations in several countries also encourage adventure tourism because it creates employment opportunities and positively impacts community development. As a result, the global appeal of outbound tourism is expected to increase.
Unpredictable climate change, ecological degradation, and linguistic and cultural loss are some conceivable risks of adventure travel. These aspects are projected to limit the growth of the outbound tourism sector in the coming years.
Japanese tourists are becoming more interested in experiencing local culture and cuisine when they travel abroad. This is due to the rise of social media and the increasing availability of information about different cultures. Japanese tourists are also more likely to travel to less popular destinations for a more authentic experience, contributing significantly to the country's economy and tourism revenue.
Attribute | Details |
---|---|
Outbound Tourism in Japan Size (2022) | USD 3,670.0 million |
Outbound Tourism in Japan Estimated Size (2023) | USD 5,271.0 million |
Outbound Tourism in Japan Projected Size (2033) | USD 57,856.2 million |
Outbound Tourism in Japan Value-based CAGR (2023 to 2033) | 27.1% |
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Japan's overall outbound tourism ecosystem has surged at a CAGR of 34.7% from 2018 to 2022. The increasing inclination of Japanese people to travel outside the country for recreational activities, the introduction of new attractive travel and tour packages, and favorable government initiatives are some of the critical factors driving Japan's outbound tourism sales.
The Abenomics-driven economic recovery in Japan has raised consumer confidence and encouraged growth in leisure and recreational activities. Tourists in Japan were the fourth-highest spending country in the US, behind China, Mexico, and Canada.
The economic crisis in Asia and the bursting of the Internet bubble have caused foreign tourism to slow down temporarily. However, Japanese tourists continue to explore neighboring destinations such as South Korea and Taiwan. Since the early 2020s, there has been a shift towards self-governing travel.
Events such as the Great East Japan Earthquake (2011) and the Fukushima nuclear disaster have adversely impacted foreign tourism. Travel habits have changed, and the focus has been domestic travel for some time. Despite these trials, foreign tourism is still growing strongly. Japan is dependably among the leading countries in international tourism spending.
Tourists are interested in developing destinations such as Vietnam, Thailand, and Indonesia and traditional destinations such as Korea and Taiwan. The rapid growth of travel apps and online booking platforms has made booking and planning trips more reachable for Japanese tourists. This has led to augmented customization and flexibility of travel itineraries.
The aging population in Japan has influenced tourism trends. Older travelers seek more cultural and leisurely experiences, though younger generations frequently seek adventure and exclusive experiences. Tourists are increasingly interested in environmentally friendly and sustainable tourism. Destinations that highlight nature conservation and accountable tourism are becoming increasingly popular.
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The table below explains the total sales of outbound tourism in Japan and CAGRs for 2033. Japan is anticipated to surge to USD 57,856.2 million by 2033.
Country | Japan |
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Market Value (2033) | USD 57,856.2 million |
In the table below, the CAGR of Japan is given for the review period 2023 to 2033. Japan is expected to remain dominant by exhibiting a CAGR of 27.1% by 2033.
Country | Japan |
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Value-based CAGR (2023 to 2033) | 27.1% |
In the forecast period, the demand for outbound tourism in Japan is expected to grow at a 27.1% CAGR. Japan is further projected to reach a value of USD 57,856.2 million by 2033.
The Government of Japan (GOJ) has steadily removed travel restrictions since the COVID-19 epidemic broke out. At a press conference in New York, Prime Minister Fumio Kishida announced that the GOJ would finally release some remaining barriers, such as the requirement for a short-term visa to enter Japan and remain there for 90 days and the ban on individual visitors. There have also been encouraging developments in border control and the sector's initiatives to encourage Japanese consumers to travel abroad. This has allowed businesses to be able to offer its services across prime locations in Japan.
Social media has emerged as a driving force behind remarkable growth in Japan's outbound tourism space. In sum, social media's pervasive influence has ushered in a new era of change for the market. It has connected travelers to vast possibilities, inspirations, and information, shaping their travel experiences and fostering continued expansion. As a result, social media has positively impacted Japan's outbound tourism ecosystem.
Supportive government policies have played a pivotal role in the significant growth of Japan's outbound tourism landscape. The Japanese government has intentionally designed and implemented programs to encourage its residents to travel the world and, as a result, enhance the country's economy. This is because it recognizes the economic importance of tourism. One of the most prominent actions has been the extension and simplification of visa procedures, including agreements on visa waivers with many nations, making foreign travel more feasible.
Further, the government aggressively promotes travel through businesses like the Japan National Tourism Organization (JNTO), spending money on marketing initiatives and international partnerships to draw domestic and foreign travelers. Owing to the favorable legislative climate that motivates and empowers Japanese tourists to visit the world, the outbound tourism business in Japan continues to prosper.
Leisure travel is the prominent purpose driving outbound tourism in Japan, with a share of 32.5% in 2022. Japanese tourists often seek leisure travel experiences that combine cultural immersion, natural beauty, and shopping and dining options. They are also becoming more interested in sustainable travel and off-the-beaten-path adventures.
In the following years, the leisure travel segment is likely to continue to dominate the Japan outbound tourism ecosystem. This is due to a variety of causes, including the Japanese economy's continuous expansion, rising disposable income, and Japanese people's increased interest in international travel.
The age group over 55 is expected to hold the dominating share of 26.5% in 2023. This group often possesses the time, financial resources, and inclination to explore international travel opportunities, making it a lucrative front for the tourism sector. People over 55 frequently exhibit a keen interest in the cultural and historical places they visit, making them passionate explorers of other people's cultures and historical sites. This can be related to the older population's growing preference for vacations abroad to unwind from hectic lives.
The growth of this segment is primarily driven by the gradual surge in the sum of adventure travelers in this age group. Furthermore, travelers in this age group opt for light adventure packages and tours and favor spending on enriching travel experiences. This category is expected to grow shortly as consumers desire light-hearted adventures and are willing to spend money on tourism and travel.
Japan's travel ecosystem recognizes this potential, tailoring packages and services to cater to their specific needs and preferences, ensuring a comfortable and enjoyable travel experience for the over-55 age group. As a result, they are spending large amounts on various tours and travel packages.
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Key players present in Japan outbound tourism are One Life Adventures, On the Go tours, Supera Tours, Bamba, Europamundo, Agate Travel, Learning Journeys, INTRO Travel, Trafalgar, Stunning Tours, The Dragon Trip, Intrepid Travel, Expedia, Trip Advisor, Explore, and G Adventures among others. These leading companies are taking key initiatives to expand and strengthen their business position and offer travelers immersive and authentic travel experiences.
The outbound tourism landscape in Japan is fragmented and competitive, with a sizable number of providers competing based on different services and packages. Companies are collaborating and forming partnerships to draw in more clients and give customers access to various options and expertise.
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Attribute | Details |
---|---|
Estimated Sales in 2023 | USD 5,271.0 million |
Projected Sales in 2033 | USD 57,856.2 million |
Anticipated CAGR between 2023 to 2033 | 27.1% |
Demand Forecast for Outbound Tourism in Japan | 2023 to 2033 |
Historical Analysis of Demand for Outbound Tourism in Japan | 2018 to 2022 |
Sales Analysis | USD million/billion for Value |
Key Countries Covered | Japan |
Key Segments Covered | Demographics, Purpose, Tour, Types, Age group |
Key Companies Profiled | One Life Adventures; On-the-go tours; Supera Tours; Bamba; Europamundo; Agate Travel; Learning Journeys; INTRO Travel; Trafalgar; Stunning Tours; The Dragon Trip; Intrepid Travel; Expedia; Trip Advisor; Colin Cowie Lifestyle; Explore; G Adventures |
Japan outbound tourism space is expected to reach USD 5,271.0 million in 2023.
In terms of demographic segment, the male segment holds a share of 54.6%.
The ecosystem is predicted to total USD 57,856.2 million by 2033.
Japan outbound tourism ecosystem grew at 34.7% CAGR from 2018 to 2022.
The overall ecosystem was valued at USD 3,670.0 million 2022.
1. Executive Summary 1.1. Market Outlook 1.1.1. Who Is Travelling? 1.1.2. Travel Gross Bookings 1.1.3. Travel Gross Revenue 1.1.4. How Much Do They Spend? 1.2. Evolution Analysis 1.3. FMI Analysis and Recommendations 2. Growth Parameters 2.1. Emphasis On Personalized Experiences 2.2. Convenience and Accessibility Authentic Local Fusion Food Experiences 2.3. Social Media Influence 2.4. Better Group Travel Incentives 3. Supply to Demand: Today's Travel Distribution Network 3.1. Direct vs. Indirect Distribution 3.2. Travel Gross Revenues, by Channel, 2022 3.2.1. Supplier Direct 3.2.2. TMC 3.2.3. Tour Operator 3.2.4. OTA 4. By Demographics 4.1. Male 4.2. Female 4.3. Kids 5. By Purpose Type 5.1. Business Travel 5.2. Leisure Travel 5.3. Education, Employment & Pilgrimage 5.4. Visiting Friends & Relatives 6. By Tour 6.1. Family 6.2. Couple 6.3. Individuals 7. By Type 7.1. Cultural & Heritage Tourism 7.2. Medical Tourism 7.3. Eco/Sustainable Tourism 7.4. Sports Tourism 7.5. Wellness Tourism 7.6. Others 8. By Age Group 8.1. Under 15 8.2. 15-25 8.3. 26-35 8.4. 36-45 8.5. 46-55 8.6. Over 55 9. Gross Revenue 9.1. Destination Wedding Gross Revenue (US$ million) and Forecast (2023 to 2033) 9.2. Target Market and Forecast (2023 to 2033) 9.3. Total Spending Y-o-Y Growth Projections (2023 to 2033) 9.4. Number of Tourists Y-o-Y Growth Projections 10. Challenges & Looking Forward 10.1. Success Stories: Case Studies 10.2. FMI Recommendations 11. Market Stakeholders Landscape - Key Direct Suppliers 11.1. Accommodation 11.2. Entertainment 11.3. Transportation 12. Social Media Sentimental Analysis 12.1. Travel Influencers: A New Phenomenon in the World of Tourism 12.2. Social Media Platforms Preferred 12.3. Trending #Hashtags 12.4. Social Media Platform Mentions (% of Total Mentions) 12.5. Trending Subject Titles 13. Assumptions and Acronyms Used 14. Research Methodology
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