Golden Week Holiday in Japan Hit by Soaring Hotel Prices and Weak Yen

Japan’s Golden Week holiday, traditionally a time for travel and leisure, has lost its charm for many domestic travelers this year. While the country is seeing a record influx of foreign tourists, rising costs and inflation are discouraging locals from packing their bags.

Golden Week includes three consecutive public holidays, offering one of the longest breaks for Japanese workers. It’s usually a time for both domestic and international travel. However, inflation and a sharp decline in the yen—down nearly a third since 2022—have driven up prices on everything from food to electricity. This has forced many Japanese citizens to tighten their budgets.

At the same time, Japan's global appeal is drawing record numbers of international visitors, from Mount Fuji to sushi bars. This boom in inbound tourism has caused hotel demand to skyrocket, pushing up accommodation prices. According to a Nikkei survey, room rates in five major cities are up by 16% compared to last year during the Golden Week period.

Atsushi Tanaka, a tourism studies professor at Yamanashi University, notes that inflation is the key reason behind reduced domestic travel. "With inbound tourism thriving, hotel operators don't need to lower their prices, which makes it harder for locals to afford travel," he explained.

Surveys confirm this trend. A poll by travel agency JTB found that only 20.9% of respondents planned to travel during Golden Week, a drop of 5.6% from 2023. Another study by research firm Intage also reported a 2% decline in domestic travel plans. Financial strain, more than crowd avoidance, appears to be the main reason.

Travel abroad, once a popular Golden Week activity, is now considered an "unattainable luxury" for many, according to Intage. Despite this, the average budget for Golden Week outings has slightly increased to $201 from $192 last year—suggesting people are reluctantly accepting higher costs.

Meanwhile, Japan welcomed over 36.8 million foreign tourists in 2024, breaking the 2019 record. The government aims to attract 60 million annually by 2030. But this success comes with backlash. Locals in places like Kyoto and near Mount Fuji are growing frustrated with overcrowding and poor tourist behavior.

As tourism booms, the rising cost of travel is leaving many Japanese residents on the sidelines this holiday season.