The surge in American tourists visiting Japan this year has been attributed to the value of the yen, which has depreciated significantly against the U.S. dollar. The number of Americans arriving in Japan by air has exceeded 900,000 in the first five months of 2024, marking a 17.4% increase year-over-year and a 35.5% surge from pre-pandemic levels in 2019. This surge can be partially attributed to pent-up travel demand following the end of the pandemic, along with the favorable exchange rate that boosts the spending power of American tourists. As a result, more Americans are opting to travel internationally, with demand booming across the Asia-Pacific region.
The weakened yen compared to the U.S. dollar has made the entire travel experience more affordable for American tourists, according to Tim Hentschel, CEO of travel bookings platform HotelPlanner. This affordability has also led to a sharp increase in foreign investments in the Japanese hotel industry. Cross-border investments in the industry have reached $1.38 billion in the first half of 2024, a 19.2% increase from the same period in 2023 and a significant 176.3% rise compared to the first half of 2019. Major U.S.-based hotel chains like Marriott, Hilton, Hyatt, and Choice are expanding their presence in Japan by partnering with local real estate and hospitality companies, attracting tourists who may prefer familiar names.
The trend of Americans traveling to Japan is further illustrated by the significant increase in nights booked through short-term rental giant Airbnb by American guests. In 2023, there was a 130% increase in nights booked compared to the previous year. Airlines are also responding to this trend by increasing seat capacity between the U.S. and Japan. Carriers have scheduled about 1.5 million seats between the two countries in June, July, and August, representing a 9% increase from the previous year. Major airlines like United Airlines, Delta Air Lines, and American Airlines Group have increased their scheduled seat capacity by 19%, 10%, and 7%, respectively, for the summer season.
Overall, the combination of a weakened yen, pent-up travel demand, and increased foreign investments in the Japanese hotel industry has led to a significant surge in American tourists visiting Japan. This trend is expected to continue with airlines increasing seat capacity to accommodate the growing number of visitors. American travelers are drawn to Japan not only for its cultural attractions and scenic beauty but also for the affordability and convenience offered by the favorable exchange rate. As more U.S.-based hotel chains expand their footprint in Japan and airlines add more flights between the two countries, the tourism industry in Japan is poised for further growth and development.
