A Cautious Outlook for International Travel
The Japan Travel Bureau (JTB), one of the nation’s leading travel agencies, has released a forecast for the 2026 travel market that suggests a more measured and potentially slower-than-expected recovery for outbound international travel from Japan. Citing persistent economic uncertainties, including the ongoing weakness of the yen and rising global inflation, the report indicates that Japanese travelers may remain hesitant to venture abroad, opting instead for more affordable and accessible destinations closer to home.
This cautious projection for overseas travel is creating a significant pivot in the tourism landscape, potentially redirecting a massive wave of domestic travel demand towards Japan’s own rich cultural and scenic destinations.
The Domestic Shift: Why Kansai Stands to Benefit
As Japanese residents reconsider their travel plans, domestic tourism is poised for a major boost. This trend is expected to particularly benefit premier destinations with strong infrastructure and diverse attractions. The Kansai region, featuring the dynamic trio of Osaka, Kyoto, and Kobe, is perfectly positioned to capture this growing market.
Background: Economic Factors and Proven Appeal
The primary driver behind this shift is economic. With the Japanese yen trading at multi-decade lows against the US dollar and other major currencies, the cost of overseas travel has surged for Japanese nationals. A trip to Europe or North America that was once manageable is now a significant financial commitment, making domestic alternatives far more attractive.
The Kansai region has already demonstrated its powerful appeal. According to data from the Osaka Convention & Tourism Bureau, Osaka Prefecture welcomed a record number of domestic overnight visitors in 2023, with figures surpassing even the pre-pandemic levels of 2019. This proves the region’s enduring popularity and its capacity to absorb and entertain a large volume of travelers.
Future Impact: What This Means for Kansai Tourism
The JTB forecast signals a period of significant opportunity for the Kansai region’s tourism industry. A renewed focus on domestic travelers could reshape local tourism strategies and visitor experiences.
The Expo 2025 Catalyst
This trend is set to receive a monumental boost from the upcoming Expo 2025 Osaka, Kansai. The world’s fair, scheduled to run from April to October 2025, is projected to attract millions of visitors from across Japan. Many of these visitors will likely extend their stay to explore the wider Kansai area, injecting substantial revenue into hotels, restaurants, transportation, and local businesses. The JTB’s 2026 forecast suggests that the momentum from the Expo could carry over, cementing Kansai’s status as the top domestic destination.
A Focus on Deeper, Richer Experiences
Unlike international tourists who may have limited time, domestic travelers often have the flexibility for repeat visits and deeper cultural immersion. This could lead to a rise in demand for more unique, localized experiences beyond the typical sightseeing spots. Expect to see growing interest in:
- Culinary tours exploring Osaka’s famous “Kuidaore” (eat ’til you drop) food culture.
- Hands-on traditional crafts workshops in Kyoto.
- Exploring the fashionable port city of Kobe and its surrounding nature.
- Visiting lesser-known attractions in neighboring prefectures like Nara, Wakayama, and Shiga.
Looking Ahead: A Golden Age for Domestic Travel in Kansai?
While the global travel recovery may be slow, the JTB’s forecast paints a bright picture for domestic tourism in Japan. For the Kansai region, this is not a consolation prize but a strategic opportunity. By capitalizing on the influx of domestic travelers and the global attention from Expo 2025, Osaka and its neighbors are on the cusp of reinforcing their position as Japan’s most dynamic and beloved tourist hub. For travelers, this means a chance to rediscover the incredible diversity and hospitality that lies within Japan’s own borders.
