A new report from Visa, a global leader in digital payments, has unveiled a remarkable surge in spending by overseas travelers in Japan’s Kansai region, providing a strong economic forecast ahead of the highly anticipated Expo 2025 Osaka, Kansai. The data, analyzing spending patterns from April 2023 to March 2024, highlights the region’s burgeoning appeal as a top international destination.
Kansai’s Tourism Boom by the Numbers
The “Inbound Consumption Report” by Visa reveals that spending on foreign-issued Visa cards in the six prefectures of the Kansai region (Osaka, Kyoto, Hyogo, Nara, Shiga, and Wakayama) skyrocketed by 81% compared to the same period last year. This figure significantly outpaces the national average growth rate of 58%, underscoring Kansai’s exceptional performance in Japan’s post-pandemic tourism recovery.
Osaka Prefecture, the host of the upcoming Expo, has been a central driver of this growth, recording an even more impressive 86% increase in inbound spending. The Kansai region as a whole now accounts for a substantial 21% of all inbound tourism consumption across Japan, solidifying its position as a critical hub for international visitors.
Who is Driving the Growth?
The report identifies the key markets fueling this economic upswing. The top five sources of spending in the Kansai region are, in order: Taiwan, South Korea, Mainland China, the United States, and Hong Kong. This data reflects a strong recovery from neighboring Asian markets, complemented by robust spending from American travelers.
When it comes to where the money is being spent, the breakdown shows a diverse range of interests:
- General Retail: Department stores and discount retailers lead the way, capturing 34% of total spending.
- Accommodation: Hotels and other lodging make up 20% of the expenditure.
- Fashion: Apparel and accessory stores account for 18%, indicating a strong interest in Japan’s fashion scene.
A Shift Towards Experiential Spending
Beyond shopping, the data points to a significant trend: travelers are increasingly investing in experiences. This shift from “mono-shohi” (consumption of goods) to “koto-shohi” (consumption of experiences) is a key aspect of modern travel.
Spending in experience-related categories saw explosive growth:
- Transportation: A 120% year-on-year increase, suggesting travelers are actively exploring the wider region.
- Entertainment Services: A 100% increase, covering attractions, shows, and cultural activities.
- Restaurants and Bars: A 96% increase, highlighting the appeal of Kansai’s world-renowned culinary scene.
This trend indicates that visitors are not just coming to shop but to immerse themselves in the unique culture, food, and activities that Osaka and the surrounding areas have to offer.
The Future: The Expo 2025 Effect
The report also provides a powerful glimpse into the future, particularly regarding the impact of Expo 2025. According to Visa’s survey, a massive 77% of international travelers interested in visiting Japan are aware of and interested in the Expo.
Crucially, 47% of these respondents expressed a strong desire to attend, answering “I definitely want to go” or “I want to go.” This high level of interest suggests that the Expo will act as a major catalyst, drawing even larger numbers of visitors to the region. The countries showing the highest interest in the event are Taiwan, South Korea, and Hong Kong, aligning with the current top-spending markets.
This powerful combination of current spending momentum and future event-driven interest paints an incredibly bright picture for Kansai’s tourism industry. The ongoing boom is not just a temporary recovery but a foundational trend that the Expo 2025 is poised to amplify, promising sustained economic benefits and further cementing the Kansai region’s status as a premier global destination.
