Record High Foreign Tourism Boosts Japan's Economy in 2024
In a remarkable turnaround for the tourism sector, Japan welcomed over 36 million foreign visitors in 2024, marking an unprecedented milestone. This surge in tourism was primarily attributed to a weakened yen and the restoration of flight routes that had been suspended during the COVID-19 pandemic. As a result, total foreign spending in Japan exceeded 8 trillion yen (approximately $50.8 billion) for the first time, according to data released by the government on January 15, 2025.
The Japan Tourism Agency reported that foreign tourists spent a total of 8.14 trillion yen on various services including accommodations, shopping, and dining, significantly surpassing the previous record of 5.31 trillion yen set in 2023.
In international relations, Chinese Premier Li Qiang expressed his willingness to host Japanese Prime Minister Shigeru Ishiba during a meeting in Beijing. Li indicated his openness to visit Japan in the near future for a trilateral summit with South Korea. During this meeting, Japanese lawmakers were optimistic about the potential lifting of China's ban on Japanese seafood imports.
Meanwhile, in South Korea, President Yoon Suk Yeol faced significant legal challenges as he was detained after failing to respond to multiple summons related to his controversial declaration of martial law in December. This unprecedented move marks the first instance in which a sitting South Korean president has been detained by authorities. Yoon has reportedly been uncooperative during the investigation.
In response to escalating tensions in the region, Japan, the United States, and South Korea conducted joint air drills featuring a U.S. B-1B strategic bomber. This military exercise was prompted by recent missile tests conducted by North Korea, including the launch of a missile described by Pyongyang as hypersonic.
In Manila, the foreign ministers of Japan and the Philippines committed to enhancing security cooperation, particularly in light of the anticipated changes in U.S. leadership under Donald Trump. They acknowledged shared concerns regarding China's increasing military activities in the region and stressed the importance of maintaining close communication between their nations.
On the economic front, Bank of Japan Governor Kazuo Ueda announced that the central bank would consider a potential interest rate hike during its upcoming policy meeting. Ueda noted positive developments in the country's wage growth, which may influence the bank's decision regarding its key interest rate, currently around 0.25 percent.
In another significant event, customs authorities at Tokyo's Haneda Airport reported a record seizure of 15 kilograms of cocaine from a single passenger. The illicit drugs, with an estimated street value of 372 million yen (around $2.4 million), were discovered concealed within candy boxes in the luggage of a 25-year-old Canadian national.
Additionally, a 58-year-old doctor was arrested at Haneda Airport after allegedly assaulting a female staff member. The incident occurred when the doctor missed a flight and reportedly became confrontational, resulting in physical violence.
As Japan continues to navigate both domestic and international challenges, these developments underscore the nation's resilience and adaptability in a rapidly changing global landscape.
