Tourists Decrease, Japanese Duty-Free Sales Hit Hard in January

Japan’s retail industry faces serious challenges in January 2026 as tourist numbers decline significantly, directly impacting duty-free segments in major departments. This phenomenon reflects a global trend where international tourist movement becomes a crucial factor for retail revenue growth, especially in the luxury goods sector and products targeted at foreign visitors.

Significant Decline Among Major Retailers

Data from Jin10 shows that Takashimaya reported a 19% contraction in duty-free sales during this period. Meanwhile, J Front Retailing recorded a 17% decrease in duty-free sales for its Daimaru and Matsuzakaya retail chains. Although these two major retailers continue to operate with different strategies, the decline in duty-free segments has limited overall sales growth to just 0.7%, well below expected targets. This decline indicates that the reduced number of tourists is a major obstacle that cannot be easily overcome through domestic sales strategies alone.

Japan’s Strategy to Increase Tourist Spending

The Japanese government and tourism industry players have set an ambitious target to attract 60 million tourists by 2030, projecting tourism revenue reaching 15 trillion yen. To achieve this goal, the government aims to increase the average spending of foreign tourists by 9%, from current levels to 250,000 yen or more. Additionally, diversification strategies include increasing the number of nights tourists spend in regional areas, with a target more than doubling to a total of 130 million nights. These measures are designed to expand the tourism revenue base beyond major commercial centers.

Balancing Tourism Growth with Local Interests

In developing the tourism sector, Japan recognizes the importance of maintaining a balance between economic growth and the quality of life for local residents. The government and industry are working to limit overtourism, where excessive tourist numbers can disrupt daily life for local communities. This multi-faceted approach aims to ensure that increasing tourist numbers do not sacrifice social and environmental assets that are key attractions for visitors. Through this approach, Japan hopes to create a sustainable tourism ecosystem while continuing to drive duty-free sales recovery and retail economic growth.