Rakuten Travel Xchange CEO: Why Japan is maturing as a global travel destination
By James Park, CEO of Rakuten Travel Xchange and General Manager of the Global Travel Management Department, Rakuten Group. Before joining Rakuten as a Country Manager for Rakuten Travel Korea in 2019, he held key positions in global travel platforms, including the Expedia Group.
Key highlights:
- Japan’s tourism economy is experiencing rapid change, benefiting from a broader base of global interest
- Travel capital is surging to second cities and more diverse destinations, away from the traditional “Golden Route,” thanks to repeat visitors
- Premium demand grows as travelers prioritize quality and experiences over room rates alone
A decade ago, spotting international tourists in regional Japan was still a novelty. Today, they’re a familiar sight—rolling suitcases across train platforms in cities like Fukuoka and Kanazawa alongside the morning rush of local commuters.
In 2025, Japan welcomed roughly 42.7 million inbound visitors—a record-breaking number that is more than double the figure just ten years ago. As we head into the peak of the 2026 summer season, a central question hangs over us in the tourism industry: can this momentum hold?
From where I sit at Rakuten Travel Xchange, where we manage the wholesale and B2B engine for Rakuten Travel, I see Japan’s tourism industry maturing into a new phase of growth. An increasingly diverse range of visitors—often on their second or third trip—are seeking out premium experiences outside of the traditional Tokyo, Osaka and Kyoto route.
The pace of this growth is extraordinary. Rakuten Travel’s global GTV (Gross Transaction Volume; total value of all bookings processed) increased by nearly 70% in the first quarter of 2026 compared to the same period last year, followed by a further 78.5% year-over-year increase in the second quarter. When we look at our data from Rakuten Travel Xchange, forward accommodation bookings from June to September are up 70.3% year-over-year, reaching 233% in September alone. All this supports our outlook for another record-breaking year in total inbound spend in 2026.
Where are the travelers coming from?
One of the most prominent changes is the diversification of source markets—or countries where our travelers come from. Japan’s tourism industry had relied heavily on a few key markets in the past, but this is no longer the case.
The growth from Taiwan is a perfect example of this. Bookings are up 156% year-over-year, making it our largest source market by volume. We see similar trends across Hong Kong (+80.9%), Singapore (+36%), South Korea (+27.7%) and the U.S. (+12.1%) for bookings spanning June through September. This variety acts as a stabilizer for the industry, ensuring that Japan remains a top destination regardless of shifts in demand from any single market.
This momentum is driven by a rising number of repeat visitors rather than a mere temporary spike, proof that the Japan brand has wide and lasting appeal in its target markets.
“Evaluating the health of Japan’s travel industry solely by visitor numbers misses the bigger story.”
Who is visiting, and where are they exploring?
We are also witnessing a clear change in who is visiting. According to recent data from EY Strategy and Consulting, 65% of inbound visitors to Japan are repeat travelers.
First-time visitors tend to stick to the so-called “Golden Route” – Tokyo, Kyoto and Osaka – and generally want to see the big landmarks. Repeat visitors, on the other hand, are willing to explore beyond these traditional spots to towns that were once seen as relatively niche.
This curiosity is driving travel capital into regional economies, including cities like Fukuoka, recently closing its gap on Osaka as Japan’s third most-visited city, and Aichi, host of the upcoming Asian Games this September. Our direct sales and B2B data from Rakuten Travel Xchange shows that destinations outside of the Golden Route now account for 67% of our total GTV this summer, up 8% on last year. As more travel capital flows to these second cities, it will inject more growth into regional businesses and communities across Japan.
What I also find interesting is that these visitors are also increasingly self-directed in their booking behaviors. For example, most travelers from Hong Kong (74%), Singapore (66%) and Taiwan (65%) book their itinerary by themselves, according to a 2026 travel study by Rakuten Insight. They are comfortable browsing multiple platforms and tools to compare travel options, which means the demand for more convenient, personalized digital tools will only continue to grow.
Is price still the dominant decision factor?
A common assumption is that the weak Yen is the reason for the current boom; this could be only half the story.
Our data shows a much more nuanced trend. While the Rakuten Insight report confirms that price remains a key factor in booking decisions, premium hotel bookings on our platform are up over 88% year-over-year. This demonstrates that the current economic environment is giving visitors the flexibility to trade up, with travelers not merely seeking cheaper options but choosing to “reinvest” their travel budgets in higher-end, higher-quality experiences.
Travelers coming for premium food, wellness experiences and high-end accommodation is a positive shift for the industry, as it grapples with continuing labor shortages. A business model based on chasing low-price volume would have been unsustainable, but demand for premium services provides hoteliers with an opportunity to expand revenue streams using the staff they have.
How is technology making travel easier?
Technology has become a vital tool both for hotel guests and hoteliers, and AI has evolved from a novelty to an essential infrastructure.
Rakuten has implemented AI-powered hotel search features as a digital guide to help solve the challenge of regional discovery. Last September, we rolled out a tailored feature on Rakuten AI that helps domestic users find hotels tailored to their unique preferences. Instead of a traveler spending hours filtering through endless search pages, our AI matches them with properties that fit their specific needs.
Technology alone won’t define the next chapter of Japan’s tourism industry, but it will play an increasingly important role in helping travelers discover more of the country.
All the indicators we are seeing point to another strong year for inbound tourism in Japan. But regardless of whether 2026 surpasses last year’s record, evaluating the health of Japan’s travel industry solely by visitor numbers misses the bigger story. The international visitors standing on train platforms around the country represent a deeper shift. Japan’s tourism economy has entered a new stage, one defined by repeat visitors seeking premium travel experiences in destinations across every corner of the country.
All data referenced in this article is from Rakuten Travel and Rakuten Travel Xchange, as of June, 2026.
