Japan’s Luxury Travel Market Outpaces Global Growth in 2023

Japan’s inbound luxury travel market saw exceptional growth in 2023, surpassing the global trend for the first time. According to a recent survey by the Japan National Tourism Organisation (JNTO), the market for travellers spending over one million yen per person in Japan reached approximately 1.0 trillion yen, up by over 50 per cent since 2019. Meanwhile, total international spending by inbound visitors increased by 10.2 per cent, reaching 5.3 trillion yen, with luxury travellers accounting for a larger share of overall expenditure.

Despite a decline in overall international arrivals, down 21.4 per cent to around 25 million, the number of luxury travellers increased by more than 80 per cent to 590,000, representing a higher share of Japan’s inbound visitors. The luxury travel market’s growth rate has actually outpaced that of the global outbound luxury travel sector, highlighting Japan’s growing appeal among high-end tourists.

The survey indicates that China remains the top source for both spending and visitor numbers, followed by the United States and Taiwan. These figures underscore Japan’s expanding reputation as a premium travel destination.

Building on this positive trend, the JNTO is set to intensify its promotional efforts. The organisation plans to engage in negotiations with overseas travel agencies specialising in luxury travel and will organise familiarisation trips within Japan. These initiatives aim to promote sustainable tourism development, boost high-end spending, and showcase regional destinations, aligning with the objectives outlined in the "Tourism Nation Promotion Basic Plan."