A new report reveals that the economic benefits of Expo 2025 Osaka-Kansai are spreading far beyond the host city, marking a significant and welcome shift in regional tourism patterns. According to an economic impact analysis by the Kansai Economic Federation, international visitor spending has seen a substantial increase in prefectures surrounding Osaka in late 2025 and early 2026, signaling a successful move towards more sustainable and distributed tourism growth across the entire Kansai region.
The ‘Beyond Osaka’ Strategy Pays Off
For years, tourism in Kansai has been heavily concentrated in the “golden route” cities of Osaka and Kyoto. While this brought economic prosperity, it also led to challenges like over-tourism and placed immense pressure on local infrastructure. In anticipation of the post-Expo landscape, regional authorities and tourism boards launched strategic ‘Beyond Osaka’ campaigns. These initiatives were designed to showcase the unique attractions of neighboring areas, encouraging the millions of Expo visitors to extend their trips and explore the hidden gems of the wider Kansai region.
The recent report confirms the success of this forward-thinking approach. The data shows a clear trend of tourists venturing into prefectures like Hyogo and Wakayama, drawn by promotions highlighting authentic local experiences—from Hyogo’s world-famous Kobe beef and historic hot springs to Wakayama’s sacred Kumano Kodo pilgrimage routes and stunning Pacific coastline.
A Closer Look at the Economic Shift
While Osaka City continues to be the largest single recipient of tourist spending, the growth rates in surrounding areas are particularly noteworthy. The Kansai Economic Federation’s report provides concrete figures illustrating this dispersal:
- Hyogo Prefecture: Tourist expenditure saw a 15% increase in the six months following the Expo compared to the same period in the pre-Expo year of 2024. This growth is largely attributed to increased stays in hot spring resorts like Arima Onsen and visits to Himeji Castle.
- Wakayama Prefecture: The prefecture experienced an even more impressive 22% surge in spending. This is linked to the growing popularity of wellness and nature tourism, with more travelers exploring the Kii Peninsula’s spiritual sites and natural parks.
The report emphasizes that this is not about Osaka losing out, but rather about the entire Kansai “pie” getting bigger and being shared more equitably. The total economic impact of tourism on the region has exceeded initial post-Expo forecasts, thanks to this successful distribution of visitor flow.
Future Implications: A Sustainable Model for Kansai Tourism
This trend points toward a more resilient and sustainable future for tourism in Kansai. By alleviating the pressure on Osaka and Kyoto, the region can offer a higher quality experience for all visitors while ensuring that economic benefits uplift a broader range of local communities.
For travelers, this is fantastic news. It means more opportunities to discover authentic Japan away from the biggest crowds. It encourages exploration of lesser-known destinations, leading to richer and more diverse travel itineraries. Experts predict this trend will continue, with other prefectures like Nara, Shiga, and the northern part of Kyoto Prefecture also poised to capture more of the international travel market.
The legacy of Expo 2025 may not just be the memories from the event itself, but the creation of a new, more balanced tourism model that allows the entire Kansai region to shine. As you plan your next trip to western Japan, consider looking beyond the city lights of Osaka to discover the rich culture, history, and nature that awaits just a short train ride away.
