- Inbound tourism numbers reached 42.7 million visitor arrivals in 2025, on track to reach the government’s target of 60 million visitors by 2030.
- Despite recent slower arrivals from China amid bilateral headwinds, inbound tourism remained resilient, supported by growth from other regions and minimal impact from individual Chinese travellers.
- ADRs have continued to strengthen in 2H/2025, and as occupancy gradually recovers to pre-pandemic levels, the RevPAR index also trends higher.
- Accommodation expenditure among inbound visitors recorded the largest growth from 2019 to 2025 compared with other expenditure categories, driven by a shift towards experience-based travel.
- Hotel investment volumes reached JPY820 billion in 2025. While this is 33% lower than the record levels seen in 2024, it remains elevated overall. Additionally, these figures are preliminary and likely to increase.
- The luxury hotel segment in Japan has gained traction in recent years, though supply remains limited. Tokyo’s ADR for luxury hotels now ranks among the highest alongside major cities such as London, New York, and Singapore in 2025.
Record inbound tourism fuels hotel sector growth
Japan’s hotel sector remained strong in 2025, with ADR and RevPAR at record highs and occupancy inching towards pre-pandemic levels. Growth is expected to continue in 2026, albeit at a more moderate pace.
Savills Research & Consultancy