Too Much of a Good Thing? The Optics and Economics of Overtourism in Japan

PHOTO: The photo spot at Arakurayama Sengen Park, Fujiyoshida that has attracted visitors from far and wide and caused much woe for locals, Spenser Sembrat on Unsplash

Australians love to travel, but are we really the ‘good tourists’ we believe ourselves to be? Governments of popular destinations are increasingly responding to local anti-tourist sentiment with measures to control or reduce overtourism. In Japan, the skyrocketing number of foreign visitors, which included more than one million Australians last year, has elicited strong backlash and become a major domestic political issue. If tourism strengthens international influence, how are responses to overtourism affecting countries’ soft power?

Too many tourists?

Fujiyoshida, a city in the shadow of Mount Fuji, cancelled its annual cherry blossom festival scheduled for April this year, citing concerns over unmanageable crowds, littering and disruption to locals’ livelihoods. 

This follows a string of local and national government initiatives to combat overtourism. In May 2024, local officials in Fujikawaguchiko installed a black screen to prevent tourists from photographing an Insta-famous Lawson convenience store with Mount Fuji in the background.

In March 2024, it was announced that parts of Gion, Kyoto’s famous Geisha district, would be permanently closed to tourists due to bad behaviour.

On a national level, the International Tourist Tax applied to each departure ticket from Japan will be increased from ¥1,000 to ¥3,000 (AU$8.80 to AU$26.40) from July 1, 2026. Several prefectures are also introducing or revising their accommodation tax frameworks. Approaches vary from charging a flat fee per person on hotel bills to tiered systems that levy higher nightly fees on luxury stays.

Nevertheless, Japan received its highest ever number of foreign visitors last year, according to statistics from Japan National Tourism Organisation (JNTO). 

The total was 42.7 million people.

The amount of international arrivals was already increasing prior to the pandemic. In 2019, visitor numbers were hovering just under 32 million, before plummeting amidst international travel restrictions. 

However, those numbers have skyrocketed over the course of 4 years from less than 250,000 in 2021, Japan’s lowest period on record, to more than 42 million. That rate of change has forced Japan to rapidly adjust from receiving comparatively few tourists to accommodating millions of visitors. 

PHOTO: Number of foreign visitors to Japan since 2010, created by Ashley Beyer using data from JNTO

Additionally, the distribution of tourists throughout Japan is uneven. The most popular destinations, Tokyo, Osaka and Kyoto, have experienced the highest concentration of visitors. 

While overcrowding at iconic attractions like Fushimi Inari, Kyoto’s path of red torii gates, or Senso-ji Temple in Tokyo is to be expected, overtourism has also led to unusual consequences. 

Tourists stocking up on viral matcha tea products have contributed to a domestic shortage, resulting in popular manufacturers implementing a ‘one item per person’ policy. High tourist numbers have also been partly blamed for Japan’s ongoing rice shortage by causing increased demand. The crisis began with an unusually hot summer in 2023 which reduced the yield and quality of crops. 

While tourists perceive the weak yen as a discount on Japanese goods, spending big on beauty, restaurants and souvenirs, locals are struggling with a cost-of-living crisis. 

For context, the average exchange rate over 2019 was one Australian dollar to 79 Japanese yen. In April last month, the exchange rate was 113 Japanese yen to one Australian dollar.

Meanwhile, real wages in Japan shrank 1.3% in 2025, the fourth consecutive year of decline. Tourists’ consumption may have helped to keep the economy afloat, but it has also contributed to inflation.

At the same time, demand for short term rentals in hotspot tourist destinations has pushed out local residents and increased property prices. Congestion on public transport, particularly in places like Kyoto that rely on bus services, has also impacted civilians’ daily routines. 

However, what has attracted the most public scrutiny is tourists’ behaviour and disrespect towards cultural norms that prioritise social harmony, humility and respect. Eating on the street, creating noise pollution in residential areas late at night, and photographing prohibited cultural relics are some common complaints. Reports of tourists committing acts of vandalism on sacred sites, including carving names into sacred shrines and bamboo at Arashiyama Forest, have also made international headlines.

In her speech to the Liberal Democratic Party’s (LDP) headquarters on September 22, 2025, which marked the official beginning of campaigning for the party leadership, Sanae Takaichi, now the Prime Minister of Japan, alleged that foreign tourists were kicking deer at Nara Park. 

PHOTO: Deer at Nara Park known for bowing when you offer a biscuit, January 14, 2024, Ashley Beyer

While it is unclear whether the accusation is verified, the comments were made in reference to Takaichi’s proposal to address misbehaviour and crime by foreigners. 

At the opening event, all but one of the five LDP candidates addressed policies on foreigners, including land ownership, illegal employment and public safety. 

Managing tourists, conflict with residents and economic trade-offs amidst an aging population have become a central part of Japan’s political debate. 

It has also fueled the far-right Sanseito Party’s ‘Japanese First’ agenda, which portrays tourism and immigration as existential threats to Japan’s national identity. The group won an unprecedented 14 seats in the last 248-seat upper house election, which political experts attribute to frustration over cost-of-living pressures and economic anxiety.

In October 2025, Takaichi responded to concern by forming a new Ministry for a Society of Well-Ordered and Harmonious Coexistence with Foreign Nationals tasked with addressing problems associated with tourists and foreign workers. At its first Ministerial Council meeting on the Acceptance of Foreign Nationals and the Realization of a Society of Well-Ordered and Harmonious Coexistence, Takaichi told ministers, in reference to illegal and antisocial behaviour committed by some foreigners, that:

“We must not create circumstances where foreign nationals who live by the rules find it uncomfortable to reside in Japan.
We draw a clear line against xenophobia. However, the Government will stand firm in responding to such activities.”

60 million visitors by 2030

Despite these challenges, Japan is sticking with its target to reach 60 million foreign visitors by 2030. The fifth Tourism Nation Promotion Basic Plan focuses on regional revitalisation, the creation of new economic opportunities and sustainable travel. 

On one hand, the target reflects economic goals. In addition to growing the number of annual visitors, the plan aims to increase tourists’ spending to ¥15 trillion (AU$132 billion) by maximising the economic impact of each visitor.

Tourism already represents 7.5% of Japan’s GDP based on 2024 data. However, those economic benefits are not being distributed evenly, with rural and regional areas missing out on tourist spending. Facing depopulation, those communities stand to gain the most from renewed economic activity.

The government’s efforts to redirect visitors are highly visible. Opening the Travel Japan website, JNTO’s official tourism guide, you are immediately met with a map displaying Japan’s regional cities on the landing page, as well as suggestions for “alternate ways to explore Japan”, “the side of Japan you won’t find on Instagram” and how to “find seclusion in every season”. 

PHOTO: Off the beaten track: Lake Chūzenji at Nikkō, Kantō region, July 3, 2025, Ashley Beyer

Maximising global influence

On the other hand, that 60 million figure may also be driven by ambitions to heighten international influence by capitalising on Japan’s popularity and cultural cachet.

Soft power, as coined by Joseph Nye, refers to the ability to get what you want by persuasion as opposed to coercive action, like the threat of force. On an international level, it’s about influencing global competitors to feel an affinity towards your country and therefore want to emulate its values and goals. 

Following the renunciation of war and use of military force in Japan’s constitution, soft power has been crucial to reconstructing the country’s pacifist post-war identity and building leadership in the international community. Everything from Japanese food, fashion, music, technology, anime, business management techniques, beauty, gardening, minimalism and lifestyle choices for longevity have become desirable, with international audiences purchasing or attempting to replicate Japanese goods and ways of life.

Tourism can be viewed as one method to transmit that influence. Visitors develop a greater appreciation for the host country, and upon their return home, share with their friends and family their positive experience. This exchange promotes an attractive view of the country.

However, what happens when tourists’ experiences are clouded by the sheer number of fellow travellers, or negative reactions from local communities? Surely the capacity of tourism to contribute to a state’s soft power also depends on the quality of visitors’ experiences too? 

In this context, could unmanaged overtourism corrupt Japan’s image internationally?

Some small businesses and restaurants have taken matters into their own hands by installing signs in foreign languages targeted towards tourists, outright refusing service or advising them to take their business elsewhere. Although an anomaly rather than the norm, these discriminatory signs have gained Internet attention, harming the perception of Japan’s hospitality industry. 

In the absence of appropriate government measures to address locals’ concerns, such responses and anti-tourist sentiment risk increasing in prevalence. 

The final line in red says: ‘If you can read this Japanese, please come in.’ 

The path forward

The sustainability of Japan’s tourism industry, and therefore ability to continue to exert soft power, is compromised by overtourism. In a time of heightening uncertainty and geopolitical instability, the personal connections built between Japan and citizens of the world through tourism may become crucial to maintaining reliable diplomatic relationships in the face of competing pressures and external shocks. 

Clearly, neither the effect nor intention of control measures is to limit the number of foreign visitors. Rather, they focus on redirecting tourist traffic and raising funds towards preserving cultural sites, building infrastructure and protecting built and natural environments.

With this in mind, the messaging on tourist taxes, fees and dual pricing is carefully framed as giving back to the community, rather than giving an impression that ‘we do not want you here’.

Other digital initiatives like congestion monitoring and reservation systems are planned to enhance visitors’ experiences while responding to the needs of locals. Balancing these interests, and finding opportunities where they intersect, is critical to the ongoing success of Japan’s tourism industry.  

PHOTO: Shibuya Crossing, Tokyo, July 12, 2025, Ashley Beyer