When the cherry blossoms started to flower in March, Japan reached a new monthly record: 3 million international tourist arrivals. Every month since, it’s continued to meet—or exceed—that once-impossible bar, outpacing 2019 figures by 10% and doubling the number from summer 2023. And that’s without the full-throated return of Chinese visitors, who used to be a top source market for Japan’s tourism industry but are still down 40% compared with pre-pandemic arrivals, according to data from CoStar.
The tumbling yen, which at around 150 to the US dollar is the lowest it’s been in almost four decades, is one important factor in Japan’s tourism boom. But so are the country’s more perennial draws: a reverence for tradition, fascinating history, cutting-edge fashion and technology and, of course, incredible food. But the currency devaluation hasn’t made everything cheaper.
The country’s hotels have pegged pricing to foreign currency rather than the yen to capitalize on international demand (and to continue making up for the two years its borders were shuttered during the Covid-19 pandemic). In fact, CoStar data show that hotel prices have risen 20% from a year earlier in each of the past 19 months, with no signs of slowing down. That means you’ll still pay around $800 for an entry-level luxury hotel room—a figure that’s consistent with 2019 prices.
Fret not. There are still great deals to be had, especially among brands that cater more to Japanese travelers .