The number of outbound trips from Japan is expected to fall by 8.8% this year, reaching 2.17 million trips during the summer holiday season, marking the first annual decline since the economic recovery from the Covid-19 pandemic in 2023, according to major travel company JTB.
Japan's Kyodo News Agency quoted JTB as saying that the decline in outbound travel this year is the result of the impact of the weak yen and rising costs.
The company's forecasts for the period from 15 July to 31 August indicate that rising costs are pushing holidaymakers away from long-haul destinations such as North America and Australia, while domestic travel may also face difficulties as individuals have become more cautious about spending due to inflation.
Average per-person spending on outbound travel is expected to rise by 6.3% per trip, reaching 323,000 yen ($2,000). A Japanese government report has meanwhile found that more than 70% of accommodation facilities in the country are suffering from labour shortages amid a booming tourism sector, which is a key driver of the economy, underscoring the need for greater investment in automation and better benefits to attract workers.
The annual white paper on tourism, reported by Japan Today on Sunday, pointed to the possibility of the sector falling into a "vicious cycle" in which increased workloads lead to a greater number of people leaving their jobs.
The government conducted a survey between December and January covering 522 accommodation facilities, of which 72.2% said they were experiencing a "labour shortage", noting that managing the growing pressure on existing staff during busy tourist seasons represents a significant challenge.