Like this post? Help us by sharing it!
As we celebrate InsideJapan’s 25th anniversary in 2025, it’s remarkable to reflect on how much has changed since our inception. What began as a passion project by Alastair and Simon has grown alongside Japan’s tourism industry, which saw inbound visitors increase from fewer than 5 million in 2000 to nearly 37 million in 2024 – a new record.
While this surge has brought economic benefits – contributing ¥44 trillion yen (approximately £231 billion) to Japan’s economy in 2024 and supporting around 6 million jobs – the distribution of these benefits has been uneven. Satellite data indicates that 80% of travelers visit just 10% of the world’s tourist destinations, a pattern mirrored in Japan. With the country’s tourism strategy aiming for 60 million visitors by 2030, the concentration of tourists in specific areas poses significant challenges.
The impact of overtourism in Japan
Overtourism affects different groups of people in significant ways. For residents, overloaded infrastructure, crowded public transport, the displacement of local businesses, and the loss of neighborhood character are growing concerns. Notably, incidents like tourists chasing geisha in Kyoto’s Gion district have highlighted cultural misunderstandings and tensions. For travellers, the impact is becoming increasingly apparent, with reports of longer queues, overcrowded attractions, and diminished experiences. A recent survey by Jalan Research Centre found that 30% of tourists to Japan encountered overtourism-related issues. Meanwhile, businesses face long-term risks, as overwhelmed destinations may lose their appeal, ultimately threatening the sustainability of tourism as a whole.
Countermeasures and our role as tour operators
Various measures have been implemented to address overtourism, including tourist taxes, capacity restrictions, and reservation requirements. However, as a travel business, we recognise our responsibility to contribute to solutions. In sustainability surveys conducted in February 2025, addressing overtourism was ranked as the 2nd most important priority for our suppliers and our staff. It was ranked 4th by customers.
Safely championing undervisited destinations
A key part of the solution lies in dispersal – encouraging travellers to explore beyond the hotspots. At InsideJapan, we are well-placed to make a real difference. We already send travellers on overnight stays in 219 different destinations across all 47 prefectures.
This strategy isn’t about directing people to far-flung, quaint locations; it’s about fostering connections to places that don’t receive their fair share of visitors, that actively want and are ready for more tourism, and that mainstream travellers can realistically explore.
Our approach to dispersing tourism considers two key factors.
First is carrying capacity – whether a destination has the infrastructure and facilities to accommodate more visitors without strain. Second is the “social license to operate”, which gauges whether local communities are willing to welcome more tourism.
Beyond this, we:
- focus on destinations outside Japan’s top five prefectures (Tokyo, Osaka, Kyoto, Hokkaido and Fukuoka), as these already account for 75% of overnight stays by international visitors.
- prioritise locations where international visitor rates are below 10% that realistically fit into travellers’ itineraries.
- find places with great accommodation – since overnight stays contribute 11 times more to regional economies than day trips.
Spotlight on Toyama
One of the key destinations we’re championing in 2025 is Toyama. During a recent visit, I saw firsthand how much the region values tourism. I met with Sari, from Toyama’s tourist board, and she explained how tourism isn’t the goal – it’s a means to revitalise the region. “We can’t regenerate Toyama with local residents alone,” she told me.
She also told me about the importance of diverting tourists away from the big cities to places like Toyama, to provide a more authentic, crowd-free experience, while also helping sustain rural communities.
In Inami, a small woodcarving town in Toyama, the woodcarving heritage is eroding: from 250 woodcarvers in 2000 to around 150 today, a 40% decline in 25 years. By 2035, that number could fall to just 50. Here, it’s clear that tackling undertourism is not just about spreading economic benefit; it’s essential for preserving cultural traditions.
A call to action
We know dispersal isn’t simple. Destinations are popular for a reason. But through a targeted approach that promotes a select number of alternative destinations, we aim to shift the dial on demand, at least a little. We are committed to sharing our experiences and strategies with industry peers to tackle overtourism collectively.
As former UNWTO Secretary-General Taleb Rifai aptly said:
“Tourism growth is not the enemy of overtourism—bad management is.”
Inside Travel Group: a proud B Corp
As a certified B Corporation since May 2023, Inside Travel Group is committed to balancing profit with purpose. Our undertourism strategy aligns with B Corp ethos by promoting sustainable tourism practices that benefit local communities, preserve cultural heritage, and provide enriching experiences for travellers.
Our vision? To build a global cultural adventure tour operator which, through applying the principles of B Corp, leads the travel industry towards a more sustainable future and protects travel for future generations.