Inflation, high hotel prices reduce Japan's Golden Week travel

Japan's annual Golden Week holiday, usually a peak travel period for domestic tourism, is experiencing a downturn as inflation and surging hotel prices—driven by record numbers of inbound foreign tourists—deter local travelers. The Japanese yen's sharp decline since 2022 has contributed to a tourism boom, making Japan more attractive to foreigners but less affordable for locals. As a result, hotel rates in Japan's major cities have risen by about 16% compared to the previous year's Golden Week. Rising prices for everyday goods and utilities are further dampening the travel enthusiasm of Japanese residents, with surveys indicating a notably tepid desire to travel this year. The financial pressures are overturning long-standing Golden Week travel traditions, leaving many Japanese less willing or able to travel domestically or abroad. These trends highlight the complex impact of currency shifts and tourism on local consumer behavior during one of Japan's most significant holiday seasons.