MENU

Kansai Tourism Rebounds: Expo 2025 Fuels First Rise in Travel Spending in Three Years

A New Dawn for Travel in Western Japan

The Kansai region is celebrating a major milestone in its post-pandemic recovery. According to a recent report from the Ministry of Internal Affairs and Communications, Japan’s consumer spending in 2025 saw a 0.9% real-term increase, marking the first significant rise in three years. This encouraging economic trend is largely powered by a resurgence in tourism, with the Osaka-Kansai Expo 2025 acting as a powerful catalyst.

TOC

The Numbers Behind the Rebound

The 0.9% increase in overall consumer spending is a clear indicator of economic recovery, but the story within the tourism sector is even more compelling. The report highlights that expenditures on travel, accommodation, and cultural activities have seen a disproportionately large surge. This revival is not just a return to pre-pandemic levels but a new wave of interest in what the Kansai region has to offer.

For context, before the global travel downturn, Osaka Prefecture alone welcomed over 12 million international visitors in 2019. While the past few years saw a dramatic drop, the Expo has been instrumental in rapidly rebuilding and exceeding previous visitor engagement, drawing both domestic and international crowds back to the vibrant heart of Western Japan.

Expo 2025: The Catalyst for Growth

The World Exposition, held on the man-made island of Yumeshima in Osaka Bay, has been the single most significant driver of this tourism boom. With a theme of “Designing Future Society for Our Lives,” the event has attracted millions of visitors, far surpassing initial projections.

The Expo’s impact extends well beyond the event grounds. It has created a “halo effect,” encouraging visitors to explore the wider Kansai region. Tourists attending the Expo are extending their stays to visit historical sites in Kyoto, the serene nature of Nara, and the cosmopolitan port city of Kobe. This has led to a significant increase in hotel occupancy rates, restaurant bookings, and sales of regional souvenirs and crafts.

Background: The Road to Recovery

This positive turn follows a challenging period for Japan’s tourism industry. The global pandemic brought international travel to a near-standstill, and the subsequent years were marked by a slow, cautious reopening. The Japanese government and local authorities in Kansai have since made concerted efforts to revitalize the sector, investing in infrastructure, promoting safe travel protocols, and developing new attractions.

The timing of the Expo was crucial. It provided a clear goal for the recovery efforts and a compelling reason for tourists to make Japan, and specifically Kansai, their destination of choice. The massive investment in transportation, including enhancements to the Osaka Metro and local rail networks, has not only facilitated access to the Expo site but has also created a long-lasting legacy of improved connectivity for the entire region.

Future Outlook: Beyond the Expo

The key question now is how to sustain this momentum after the Expo concludes. The outlook remains bright, with several factors pointing towards continued growth.

Lasting Infrastructure and Investment

The infrastructure improvements made for the Expo will continue to benefit residents and tourists for decades to come. Furthermore, the global spotlight on Osaka has spurred further investment, most notably the development of Japan’s first integrated resort (IR), which is slated to open in Osaka in the coming years. This will provide another major draw for international visitors.

A Diversified Tourism Portfolio

The Expo has successfully showcased Kansai’s diverse appeal—from futuristic technology and global culture to timeless traditions and world-class cuisine. This has helped broaden the region’s image, attracting a wider demographic of travelers. Local tourism boards are now focused on promoting unique, experience-based travel, encouraging visitors to delve deeper into the local culture.

For travelers, this means there has never been a better time to visit Kansai. The energy of the Expo, combined with the region’s enduring charm, offers an unparalleled experience. As Kansai moves forward, it is poised to solidify its position not just as a gateway to Japan, but as a premier global destination in its own right.

Author of this article

TOC