The Kansai region, with its vibrant hubs of Osaka and Kyoto, is once again at the epicenter of Japan’s tourism boom. International booking platforms are reporting a massive surge in demand for accommodations, signaling a powerful recovery that not only meets but in many ways exceeds the heights seen before the pandemic. This resurgence mirrors a trend first identified nearly a decade ago, confirming the region’s enduring appeal to global travelers.
The Current Surge: A Post-Pandemic Phenomenon
Recent data paints a clear picture of a triumphant comeback. According to the Japan National Tourism Organization (JNTO), the number of international visitors to Japan has rapidly climbed back, reaching over 3 million for the first time in March 2024. The Kansai area has been a primary beneficiary of this influx.
Hotel occupancy rates in Osaka and Kyoto have consistently outperformed the national average. In major Osaka hotels, occupancy rates have frequently surpassed 85%, a figure driven by a strong return of tourists from East Asia, Southeast Asia, and Western countries. This high demand is pushing room rates to record levels, reflecting the intense competition for lodging in prime locations.
Echoes from the Past: A Look Back at the 2015 Boom
This current wave of enthusiasm is not without precedent. A 2015 report from the Japan Travel Bureau (JTB) highlighted a similar trend, where the Kansai hotel sector was already experiencing a strong recovery and a surge in international bookings. That period, fueled by a weakening yen and relaxed visa requirements for several Asian countries, laid the groundwork for the inbound tourism boom that defined the late 2010s. The report noted a significant increase in guests at hotels in both Kyoto and Osaka, establishing the region as a must-visit destination on the global travel map.
The trends observed in 2015—a preference for cultural experiences in Kyoto and urban entertainment in Osaka—are even more pronounced today, demonstrating the timeless appeal of these two cities.
Key Drivers of the Renewed Interest
Several factors are converging to fuel the current demand, creating a perfect storm for Kansai’s tourism industry.
The “Golden Combination” of a Weak Yen and Open Borders
The historically weak yen makes Japan an incredibly affordable destination for international travelers. Visitors find their money goes further, allowing for longer stays, upgraded accommodations, and more spending on shopping and dining. This, combined with fully reopened borders, has unleashed years of pent-up travel demand.
New and Evolving Attractions
Kansai continues to innovate its offerings. The opening of Super Nintendo World at Universal Studios Japan in Osaka has been a massive draw for families and pop culture fans worldwide. Furthermore, the upcoming Expo 2025 Osaka, Kansai, Japan is already generating significant global interest, prompting early travel planning and hotel bookings.
Enhanced Accessibility
Kansai International Airport (KIX) has been instrumental in the recovery, restoring and expanding its network of international flights, particularly from low-cost carriers (LCCs) across Asia. This improved connectivity makes accessing Osaka and the wider Kansai region easier and more affordable than ever.
Future Outlook: Opportunities and Challenges
The future for Kansai’s tourism sector looks exceptionally bright, but it is not without its challenges.
The immediate impact is a massive boost to the local economy. Hotels, restaurants, retail stores, and transportation services are all benefiting from the increased tourist spending. The lead-up to Expo 2025 is expected to accelerate this trend, spurring further investment in infrastructure and new hotel construction.
However, this success brings the risk of “overtourism.” Popular sites in Kyoto are already experiencing significant crowding, putting a strain on public transportation and the daily lives of local residents. The hospitality industry also faces a severe labor shortage, making it difficult to maintain high service standards amidst overwhelming demand.
Looking ahead, the key for Kansai will be to manage this growth sustainably. Strategies to disperse tourists to lesser-known areas, promote off-season travel, and invest in smarter tourism infrastructure will be crucial to ensure that the region remains a world-class destination for decades to come. For travelers, the message is clear: the magic of Osaka and Kyoto is in high demand, and booking well in advance is essential.
