The Kansai region’s economy, with Osaka at its heart, is showing clear signs of a moderate recovery, according to the latest economic assessment released on February 19, 2026, by the Kansai Bureau of Economy, Trade, and Industry (METI). While this is welcome news, the report also highlights the persistent issue of rising prices, creating a mixed but hopeful picture for residents and future visitors.
For travelers planning a trip to Osaka, this economic trend offers insights into what to expect in terms of costs, service quality, and new experiences. Let’s dive into the details and explore what this means for your 2026 travel plans.
The Economic Landscape: Post-Expo and Beyond
To understand the current situation, it’s important to consider the recent context. The region is navigating the economic landscape following the conclusion of the Expo 2025 Osaka, Kansai. The global event provided a significant, albeit temporary, boost to construction, hospitality, and tourism. The current recovery phase is a crucial test of the region’s underlying economic strength.
Furthermore, Japan has been experiencing a prolonged period of a weaker yen. This has been a powerful magnet for inbound tourism, making Japan an affordable destination for many international visitors. However, it has also contributed to higher import costs, fueling the domestic price increases mentioned in the METI report.
Key Takeaways from the Report
Personal Spending: Strong but Cautious
The report indicates that personal consumption is on an upward trend. Department store sales in Osaka, for example, have reportedly seen a 5.2% year-on-year increase, driven by luxury goods and cosmetics, largely thanks to the return of international tourists.
However, the report cautions that rising prices for daily necessities, food, and energy are putting pressure on household budgets. For travelers, this means that while luxury shopping might feel like a bargain due to the exchange rate, the cost of dining out at local eateries, transportation, and convenience store items may be slightly higher than in previous years.
Business Investment and a Brighter Job Market
A very positive sign is the increase in corporate investment. Companies are investing in new facilities, technology, and renovations. In the tourism sector, this translates to new hotel openings and the refurbishment of existing ones, particularly in the Umeda and Namba areas. This investment aims to capture the sustained interest in Osaka as a top travel destination.
The employment situation is also improving. The job-to-applicant ratio in the Kansai region has steadily improved, a trend that helps alleviate labor shortages in the service industry. For visitors, this could mean better service at hotels, restaurants, and tourist attractions as businesses become more adequately staffed.
Future Outlook: What Travelers Can Expect
The METI report points to a few key factors to watch: price trends, wage growth, and the global economic climate. Here’s how these factors could impact your visit.
Budgeting for Your Trip
While the weak yen continues to offer significant value for many foreign currencies, it’s wise to budget for slightly higher costs on the ground. Accommodation prices, especially, may remain elevated due to strong demand. We recommend booking flights and hotels well in advance to secure better rates. Dining costs can be managed by exploring Osaka’s vast array of affordable yet delicious options, from street food stalls to local shokudo (cafeterias).
An Evolving Cityscape
The ongoing corporate investment means Osaka will continue to evolve. Expect to see new and improved attractions, shopping complexes, and dining experiences. The legacy of Expo 2025 may also see some sites repurposed into new public parks or cultural facilities, offering fresh destinations to explore.
The Bottom Line
The Kansai economy is on a solid path to recovery. For travelers, this signals a vibrant, dynamic, and welcoming Osaka. While you should be mindful of rising local prices, the overall value proposition remains strong. The city’s ongoing investment in its infrastructure and tourism offerings ensures that Osaka will continue to be a world-class destination, promising an even richer and more comfortable travel experience in the years to come.
