Japan Visitor Spending Hits Record 7.06 Trillion Yen as Arrivals Fall

Fewer Visitors, More Spending

Foreign visitors spent a record 7.06 trillion yen, about $45 billion, in Japan during January through September 2026, even as arrivals fell 2.9% to 30.73 million. The figures released on October 21 show a tourism economy earning more money from a smaller flow of visitors, with Taiwan replacing China as the biggest source of spending in the third quarter.

The Japan Tourism Agency put spending for the first nine months 1.9% above the same period in 2025. Its Inbound Consumption Survey gives a more precise total for July through September: 2.2076 trillion yen, up 3.2% from a year earlier. Those quarterly figures are first preliminary estimates.

The Japan National Tourism Organization recorded 30,730,200 arrivals through September, the first decline for that period since 2021, during the COVID-19 pandemic. Chinese arrivals fell 55.5%, while South Korea and Taiwan sent substantially more visitors.

For hotels, restaurants and shops, the change means that customer numbers and sales are moving in different directions. Spending per visitor has risen, and growth from several markets has helped offset a sharp contraction in travel from China. Businesses face different conditions depending on which visitors they serve and what those customers buy.

What Is Lifting the Spending Total?

Average spending per general visitor reached 233,677 yen in July through September, an increase of 6.1% from a year earlier. The agency presents that figure as approximately 234,000 yen in its official summary. The measure excludes cruise ship passengers.

Arrivals fell 4.8% during the same quarter, while total expenditure rose 3.2%. Visitors who came were spending more on average, helping keep tourism receipts growing despite the decline in traffic. Total expenditure also depends on the mix of visitors and the survey population used to measure their spending.

The figures measure money spent in yen. They do not provide a breakdown showing how much of the increase came from prices, purchases, accommodation choices or changes in the people visiting Japan. That leaves businesses with a clear sales trend but a less complete explanation of what is driving each additional yen.

Taiwan Leads a Changing Market

Taiwan accounted for 381.8 billion yen in spending during July through September, up 26.2% from a year earlier. Its 17.3% share of the total placed it ahead of China, whose visitors spent 358.3 billion yen, or 16.2%.

The gap between the two was 23.5 billion yen. China had accounted for 27.8% of visitor expenditure a year earlier, so its share fell by 11.6 percentage points. That is a substantial shift in where Japan earns its tourism revenue.

South Korea ranked third for quarterly spending at 293.8 billion yen, an increase of 45.8%. The United States followed at 240.9 billion yen, while Hong Kong contributed 155.5 billion yen, up 37.1%.

Together, Taiwan, China, South Korea, the United States and Hong Kong generated 1.4303 trillion yen, about 64.8% of quarterly visitor spending. Their combined weight means that changes in a handful of markets still have a large effect on Japan's tourism businesses, even as spending grows elsewhere.

China's Decline Reshapes Tourism

Chinese visitors spent 39.8% less in the third quarter than a year earlier, when their expenditure reached about 595 billion yen. The reduction to 358.3 billion yen represents roughly 236.7 billion yen less flowing into Japanese accommodation, shops, restaurants and other travel purchases.

Chinese arrivals during January through September fell to about 3.34 million from 7.49 million a year earlier. That is a loss of approximately 4.15 million arrivals. Across all markets, the 2.9% decline implies a net reduction of about 918,000 visitors, based on the rounded growth rate. Growth elsewhere therefore offset much of the Chinese decline.

Travel weakened amid strained relations following Prime Minister Sanae Takaichi's parliamentary remarks in November 2025. She suggested that a Chinese attack on Taiwan could prompt Japan's Self-Defense Forces to support the United States. Chinese authorities subsequently issued repeated advisories urging citizens to avoid travel to Japan.

The Japan National Tourism Organization also cited reduced flight services between China and Japan as a factor. Fewer available flights restrict the number of possible trips alongside the effect of the travel warnings.

Chinese visitors who did travel spent more individually. Their average expenditure rose 22.1% to 294,560 yen in the third quarter, about 26% above the general visitor average of 233,677 yen. That increase softened the spending decline, while the much smaller number of visitors pulled the total down.

South Korea and Taiwan Bring More Arrivals

South Korea remained Japan's largest source of visitors during the first nine months, sending about 8.3 million people, up 21.6%. Taiwan followed with about 6 million, an increase of 19.1%. Together they accounted for roughly 46.5% of all arrivals through September.

China ranked third with about 3.34 million arrivals. The United States supplied about 2.5 million, up 5.2%, and Hong Kong about 2 million, up 7.7%. Those increases helped Japan pass 30 million visitors by September for only the second time, following 2025.

September showed the same contrast between markets. South Korean arrivals rose 25.6% to 842,300, supported by the Chuseok holiday period and increased airline capacity. Taiwan sent 595,600 visitors, up 13%.

China's September arrivals fell 44.5% to 430,800, compared with 775,657 a year earlier. It was the tenth consecutive month of annual declines, a run that began in December 2025. Total arrivals for September were 3,103,700, down 5%, following a 9.6% decline in August.

Seven markets, including South Korea, Mexico and the Middle East, recorded their highest September arrivals. Japan's tourism slowdown was therefore uneven: several markets were setting monthly records while the sharp fall from China weighed on the national total.

Where Visitors Spent Their Money

Accommodation was the largest item in the average visitor's quarterly travel budget, at 82,523 yen. Shopping followed at 64,367 yen, then food and drink at 53,600 yen. Together, those three categories came to 200,490 yen, roughly 86% of average expenditure.

For businesses, those amounts show how widely visitor money is distributed. A trip supports accommodation providers, retailers and food businesses, with the remaining expenditure going to other purchases and services. A change in the number or spending habits of visitors can therefore affect several industries at once.

Visitors travelling specifically for tourism and leisure spent an average of 222,391 yen, up 8% from a year earlier. That was 11,286 yen below the average for general visitors, a category that also covers other travel purposes.

The survey put the average stay at 10.3 nights, down 1.2 nights from a year earlier. Higher spending per visitor therefore came alongside shorter average stays. Japan was receiving more money per trip even as the average time spent in the country declined.

Growth From a Wider Range of Markets

France contributed 53.6 billion yen in quarterly spending, up 27.2%, while visitors from the United Kingdom spent 47.5 billion yen, an increase of 11.5%. Italy contributed 37 billion yen, up 22.2%, and Spain 35.9 billion yen, up 24.9%.

Singapore's spending rose 33.4% to 23.6 billion yen. Russia recorded growth of 106.7% to 18.2 billion yen, while Malaysia contributed 18.1 billion yen, up 10.8%, and India 17.2 billion yen, up 11.9%.

Russia's growth rate was the largest among those figures, but the size of each market matters alongside its rate of change. Taiwan's quarterly spending of 381.8 billion yen was about 21 times Russia's 18.2 billion yen. Strong growth from a smaller market contributes useful revenue, while changes in the largest markets carry much more weight.

The agency began publishing separate expenditure figures for Mexico, the Nordic countries and the Middle East with its January through March 2026 survey. That expanded detail gives tourism businesses more information about markets beyond the largest sources of visitors.

A Record With a Softer Summer Quarter

July through September spending rose compared with the same quarter in 2025, but it was lower than the 2.5125 trillion yen recorded in April through June 2026. The decrease was 304.9 billion yen, or about 12.1%.

Average expenditure also fell between those quarters, from 244,733 yen to 233,677 yen, a reduction of 11,056 yen. The comparison with a year earlier shows growth, while the comparison with the immediately preceding quarter shows a lower spending level. Both are useful for businesses tracking demand across different travel seasons.

Japanese travel abroad moved upward in September. Overseas departures by Japanese nationals rose 6.3% to 1.48 million, bringing the January through September total to 11.21 million, up 3.2%. Travel into and out of Japan was therefore following different trends.

The Dates Behind the Shift

The decline in Chinese travel developed over several months before the October release brought together the spending and arrival figures:

• November 2025: Takaichi made remarks about a possible Taiwan conflict, and Chinese authorities began issuing advisories against travel to Japan.
• December 2025: Chinese arrivals began a run of annual declines that continued for ten consecutive months through September 2026.
• April through June 2026: Foreign visitors spent 2.5125 trillion yen in Japan.
• July through September 2026: Spending reached 2.2076 trillion yen, up 3.2% from a year earlier, despite a 4.8% fall in arrivals.
• October 21, 2026: The Japan Tourism Agency published its first preliminary spending estimates for July through September, alongside the release of September arrival figures.

The nine month record leaves Japan with higher visitor receipts and a different mix of customers. Taiwan and South Korea are contributing more, China is contributing substantially less, and spending per visitor is helping sustain revenue as total arrivals decline.

Key Points

• Foreign visitors spent a record 7.06 trillion yen in January through September 2026, up 1.9%.
• Arrivals fell 2.9% to 30,730,200, the first decline for that period since 2021.
• Quarterly spending reached 2.2076 trillion yen, with average expenditure of 233,677 yen per general visitor.
• Taiwan led quarterly spending at 381.8 billion yen, ahead of China's 358.3 billion yen.
• Chinese arrivals fell 55.5% over nine months, while arrivals from South Korea and Taiwan rose 21.6% and 19.1%.
• The July through September spending figures are first preliminary estimates.