Japan is experiencing a record-breaking tourism boom — but an escalating staff shortage may tarnish its global reputation for omotenashi, the traditional Japanese spirit of hospitality.
While Japan targets 60 million inbound travelers by 2030, tourism industry leaders are sounding the alarm: without enough skilled staff, the country’s celebrated service standards could begin to falter. A recent study by the Asia Pacific Institute of Research warns that Japan’s tourism sector could face a shortfall of 536,000 workers by the end of the decade.
“We’re already seeing a critical shortage across the country, especially in rural areas,” said Masaru Takayama, president of Kyoto-based Spirit of Japan Travel. He explained that many workers who left the industry during the COVID-19 pandemic have since moved into other careers, taking their experience and hospitality skills with them.
The labor crisis has caused a sharp rise in salaries in tourism hotspots like Niseko, where some wages have tripled compared to pre-pandemic levels. However, higher pay alone may not be enough to attract younger Japanese workers, many of whom are seeking better work-life balance and more stable career options, according to tourism marketing analyst Ashley Harvey.
Harvey also noted an emerging solution — albeit a controversial one in some circles: foreign workers. In prefectures like Shizuoka and Kanagawa, the presence of international staff is increasing. Yet, hiring non-Japanese workers remains a sensitive topic for many, raising questions about cultural preservation and integration.
Despite the labor strain, foreign tourist numbers are soaring. Japan welcomed a record 36.9 million tourists in 2024, and officials expect more than 40 million visitors in 2025. In February alone, Japan received 3.26 million foreign travelers, the highest ever for that month, driven by interest in winter sports and the Chinese New Year holiday.
Kyoto, one of Japan’s most popular tourist destinations, has seen a sharp rise in foreign visitors to major attractions like Kinkakuji (Golden Pavilion), Fushimi Inari Shrine, and Nishiki Market — all experiencing increases of over 24% year-on-year. But the influx has also pushed hotel prices higher, prompting many Japanese domestic travelers to avoid peak seasons or skip visits altogether.
While the yen’s weakness has made Japan more affordable for foreign tourists, rising domestic costs and stagnant wages have made travel less attractive for locals. Some experts warn that this growing divide in tourism access may lead to a widening cultural and economic gap — and perhaps, a fundamental shift in how Japan prioritizes its visitors.
Still, the government remains optimistic. With the help of public-private collaboration, recruitment reform, and possibly a more inclusive approach to foreign labor, Japan aims to maintain its world-class service while handling the unprecedented surge in global interest.
