The Japan Staycation Industry has the potential for dramatic growth, with forecasts projecting an increase from USD 29.5 million in 2025 to USD 56 million by 2035, based on a CAGR of 6.6%. This is mainly due to the growing popularity of staycations as Japanese people want to visit local areas without the hassle of foreign travel. In addition, economic downturns and an increasing focus on cost-cutting vacations have rendered staycations a more economical choice for many. Furthermore, Japan's attention to wellness, family activities, and cultural tourism has further driven demand for local travel.
Market Overview
| Attribute | Value |
|---|---|
| Estimated Japan Industry Size (2025E) | USD 29.5 million |
| Projected Japan Value (2035F) | USD 56 million |
| Value-based CAGR (2025 to 2035) | 6.6% |
This growth is fueled by a desire among Japanese consumers to rediscover local gems, driven by environmental consciousness and a preference for shorter, more spontaneous trips. Families are increasingly choosing staycations to save on travel costs while enjoying vacation-like experiences close to home.
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The chart below compares the changes in CAGR from the base year, 2024, to 2025, tracking shifts in the market’s dynamics.
CAGR Values for Japan Staycation Industry (2024 to 2025)
It is projected that Japan’s Staycation Industry will grow at a CAGR of 6.1% in the first half of 2024, with a slight increase to 6.2% in the second half. By the first half of 2025, the growth rate is expected to increase to 6.4%, supported by rising demand for family-oriented and wellness-centric local escapes.
| Category | Details |
|---|---|
| Market Value | The Japan staycation market is estimated to generate USD 27.7 million in 2024, contributing 45% of Asia's staycation market. |
| Domestic Market Share | Domestic travelers account for 90% of the market, with key destinations including hot spring resorts in Hakone, the temples of Kyoto, and the coastal beauty of Okinawa. |
| International Market Share | International visitors contribute 10%, particularly from neighboring countries like South Korea and China, attracted to Japan's rich culture and natural beauty. |
| Key Destinations | Popular staycation destinations include Hakone (Kanagawa), Kyoto, and Okinawa. |
| Economic Impact | Staycations play a crucial role in Japan’s regional economies, boosting local tourism industries, including hotels, restaurants, and cultural sites. |
| Key Trends | Rising trends in eco-tourism, wellness retreats, and cultural tourism are dominating, with a growing interest in historical towns and rural stays. |
| Top Travel Seasons | The peak seasons for staycations are during Golden Week, Obon, and New Year holidays. |
Japan's staycation market is thriving, especially in regions where visitors can sample a combination of nature, culture, and health without having to go too far. Hakone's famous hot springs are the ultimate relaxation sanctuary, with travelers soaking in curative waters among scenic mountains. Okinawa's untouched beaches are still a top choice among beach enthusiasts and people seeking a peaceful refuge. Kyoto's rich cultural legacy, its temple, tea houses, and ancient gardens, tempts the seeker of culture away from distant locations and back into the familiar terrain. Further driving the boom, the increased attention to wellness has led to a proliferation of health retreats and spa resorts in areas such as Hokkaido and Kyushu, where the reviving spas of these locations combine with the health benefits of pursuits such as trekking and skiing. Sustainable tourism is gaining popularity, with environmentally friendly hotels providing green amenities, restaurants serving locally produced, organic fare, and serving to promote both health and ecologism awareness among staycationers.
| Date | Development & Details |
|---|---|
| Jan 2025 | "Healing Hot Springs" Staycation Package in Hakone: A hot spring resort in Hakone introduced a package focused on wellness, offering yoga, meditation, and therapeutic hot spring baths. |
| Dec 2024 | Introduction of "Cultural Exploration" Getaways: A Kyoto-based resort launched staycation packages that include private tours of ancient temples, tea ceremonies, and kimono experiences. |
| Nov 2024 | "Island Retreat" in Okinawa: An Okinawan beachfront resort debuted a tropical staycation package, combining beach relaxation with underwater tours and traditional Okinawan culinary experiences. |
| Oct 2024 | "Mountain Escape" in Hokkaido: A mountain lodge in Hokkaido unveiled a wellness-focused staycation, offering activities such as hiking, hot springs, and local food tastings. |
| Sept 2024 | "Sustainable Glamping" at Fuji Five Lakes: A new glamping site near Mount Fuji focuses on eco-friendly accommodation with solar power, sustainable food practices, and minimal environmental impact. |
Corporate Buyers Drive Business Travel Staycations
Corporate buyers are set to dominate business-related staycation bookings, accounting for an estimated 50% of the total market by 2025. This trend is driven by Japan’s growing preference for combining business with relaxation, particularly in the post-pandemic era where companies seek ways to improve employee wellness and team cohesion without the need for long-distance travel. Staycations provide the perfect opportunity for companies to conduct internal training, corporate retreats, and team-building exercises in a more relaxed, local environment, fostering creativity and collaboration.
Luxury hotels and resorts with large conference centers, like those in Hokkaido, Okinawa, or even city centers like Tokyo, are becoming first-choice destinations for business groups. Such properties would feature large meeting spaces and break-out rooms ideal for business application and presentations. But what truly sets them apart is the wide variety of other facilities aimed at facilitating productivity and health. Many resorts now feature wellness programs, such as onsen activities, yoga, or mindfulness classes, to help de-stress and allow employees to rejuvenate. These sessions allow participants to unwind after a meeting day, cultivating mental health and overall relaxation.
On top of that, cultural activities like guided tours, Japanese tea ceremonies, or even culinary classes are being added to these corporate staycation packages. These experiences not only promote team-building and cultural appreciation but also give employees enriching experiences beyond their normal work routine. Through this hybrid methodology, businesses are recognizing the need for employee health and happiness and utilizing staycations as an asset to provide enhanced work-life balance, a healthier team atmosphere, and more efficient productivity.
Employment-Related Staycations Lead the Market
Work-related staycations are being seen as an important revenue stream with 40% of all staycation revenue in Japan. These reservations, which are meant for employees on the move to relocate for a short-term contract, go on corporate interviews, or are on temporary work travel, are predicted to yield a high revenue with their niche requirement and high-expenditure prospects. Most firms tend to go for luxury accommodation and facilities for staff, willing to spend more on comfort and convenience in order to facilitate business away from the office.
For example, big companies might require accommodations for executive-level staff or clients visiting for meetings or deal-making. High-end accommodations, like upscale hotels in city hubs such as Tokyo or Kyoto, provide not just first-class accommodations but also amenities supporting high-level business functions, such as executive lounges, in-room dining, and business centers. These types of accommodations might cost more because value-added services specifically target business professionals.
In addition, business stays cover more extended stay periods. An advisor working on a multi-week assignment or a foreign professional working temporarily in Japan may require longer stays of several weeks or more. Extended stay periods allow the hotel chains and serviced apartments to quote higher tariffs, significantly enhancing their revenues. Properties offering exclusive deals for extended stays, such as discounted rates for corporate bookings or enhanced amenities like on-site gyms, are likely to attract more business clients looking for a combination of work convenience and personal comfort.
This segment benefits from the steady demand created by businesses needing to support their workforce’s travel and accommodation needs. As Japan continues to be a hub for multinational companies and remote work opportunities, employment-related staycations will continue to contribute substantially to the overall market revenue.
The Japan Staycation Industry is diverse, with a wide array of products that cater to varied tastes of travelers. Premium wellness resorts like Hakone Yumoto Onsen and The Peninsula Tokyo deliver premium experiences, focusing on relaxation, indulgence, and the best facilities, attracting those who wish to relax and indulge in ultimate comfort. Boutique hotels, on the other hand, like traditional ryokan inns, offer a more personal experience, blending genuine cultural touches with contemporary comfort. Environmentally friendly tourists are now opting for glamping resorts around Mount Fuji, which place high value on sustainability yet provide comfort amidst nature. Rural getaways throughout Japan also pay close attention to immersion in local culture, enabling visitors to discover rural traditions, cuisine, and ways, delivering a custom, rewarding experience.
2025 Market Share of Japan Staycation Players
Leading players in the market include Rakuten Travel, Jalan.net, and Ikyu. Smaller boutique hotels and eco-resorts are also gaining popularity, contributing to the market’s broad diversity.
The Japan Staycation Industry is expected to grow at a CAGR of 6.6% from 2025 to 2035.
The market is projected to reach USD 56 million by 2035.
Key drivers include a rise in domestic travel, affordability of local experiences, and a growing focus on wellness and cultural tourism.
Major players include Rakuten Travel, Jalan.net, and Ikyu, and regional operators offering niche, eco-friendly, and wellness-focused stays.
The industry is segmented into Online Travel Agency, Traditional Travel Agency, Travel Management Companies, and Corporate Buyers.
The market is analyzed by age group, including Under 15, 16 - 25, 26 - 35, 36 - 45, 46 - 55, and Over 55.
Segmentation includes Business Travel, Leisure Travel, Education, Employment, Pilgrimage, and Others.
The industry includes Individual, Couples, Families, and Group.
The market is segmented into Phone Booking, Online Booking, and In-Person Booking.
Segmentation includes Independent Traveler, Package Traveler, and Tour Group.
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Japan Staycation Market
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