Japan Rail Pass: Spreading or Consolidating Tourism?

We’re hearing some chatter these days about the Japan Rail Pass and its possible effects on overtourism in Japan. 

I've got a lot of thoughts about that, as you can imagine. So let's unpack that in this edition of the Kansai quick note. 

The Japan Rail Pass: Pros & Cons, Price Increase

The Japan Rail Pass is, at its core, a nice thing. This pass is exclusively for international travelers on temporary visas in Japan, and must be purchased prior to visiting Japan.

I used the Japan Rail Pass way back in the day, coming here as a high school student and traveling across Japan by train from Kyushu to Tohoku, with many points in between. 

When used strategically, and a bit frugally, the Japan Rail Pass can be both economically beneficial and convenient. Purchased in durations of one, two or three weeks, for either regular seating or upgraded Green Car seating, it’s valid on nearly all of the lines in the JR network, (the formerly-national-turned-kinda-private Japan Railway, comprising a handful of different regional railways under the JR flag). 

The Japan Rail Pass includes many shinkansen bullet trains, but cannot be used on the fastest Nozomi and Mizuho shinkansen trains without paying an additional fare supplement.

Until 2023, the Japanese government was heavily subsidizing the Japan Rail Pass, chalking it up as an investment in promoting tourism beyond Tokyo & Kyoto/Osaka (aka The Golden Route). But in October 2023, the Japan Rail Pass price went up some 70%.

That felt like the right thing to do, honestly, given that the yen has been cheap for years and travelers to Japan (one of the most popular destinations in the world) were already getting a good deal on exchange rates alone. The price hike (and savings to the taxpayer) got a good reception among the Japanese public.

But would this price hike have an effect on tourism in Japan? And if so, how?

Japan Rail Pass Price Hike: The Effects on Tourism in Japan?

Since the price increase nearly a year ago as I write this, tourism in Japan has not dropped. In fact, tourism numbers continue to skyrocket.

So for the first question, would raising the price of the Japan Rail Pass cause the overall number of inbound visitors to drop? No, no it has not.

Now for another question or two, and a sort of unintended consequence – maybe.

Would the Japan Rail Pass price increase prompt many travelers to buy point-to-point tickets rather than a buffet of train travel?

And if so, would the subsequent effect be visitors concentrating their travels to only a few destinations, namely Tokyo, Kyoto & Osaka? After all, the latter two are basically next to each other, meaning only two bullet trains need to be purchased to see all three cities on one Japan itinerary (of say 7, 10 or even 14 days).

The short answer to both of those questions is – sorry to deflect & defer but, yeah it’s “too early to tell.”

I think it’s likely that we’d see figures showing more point-to-point tickets purchased in 2024 compared to previous years, and fewer Japan Rail Passes.  

As to the last question, are there fewer people getting out and about beyond the Golden Route of Tokyo-Kyoto-Osaka? Again I’ll have to punt and say that time will tell. We know that Kyoto was already feeling the effects of overtourism long before the Japan Rail Pass price increase, with Tokyo and Osaka seeing more of it lately as well.

I’ve heard and read some anecdotal evidence that points to consolidation of travel along the Golden Route. It does kind of feel like some people are now less inclined to venture off the beaten path as it were, knowing that they’d have to make an additional ticket purchase (or two) where they once could have continued to use the Japan Rail Pass for unlimited JR train travel. 

But, really, we don’t know that for fact… not yet.

What Does This Mean for You, Traveling to Japan?

If you've been following along with these articles from Japan Travel Pros, you know by now that we’re big proponents of traveling off the beaten path in Japan. 

And I'll champion the adage that time is precious. Thus properly arranging a Japan travel itinerary to maximize time should be a high priority on your self-guided tour of Japan. 

Having said all that, for the majprity of our clients, I don't recommend the Japan Rail Pass. And I most definitely recommend traveling beyond the Golden Route of Tokyo-Kyoto-Osaka. 

So you might say that these price increases and effects on tourism / overtourism have no effect on you, right? 

For the most part, no, they don’t. 

In fact, if anything, there's even more of a case to be made to travel off the beaten path in Japan. After all, if more people are concentrating their travel efforts on Tokyo, Kyoto and Osaka, that makes overtourism in those places all the more real. therefore the case to get out into the rest of Japan is even stronger. 

What’s the Best Way to Travel Around Japan?

In my opinion, the best way to travel across Japan is with a combination of point-to-point train tickets, domestic flights (to save time), and even the occasional bus ride and/or car rental.

It depends where you're going, what you like to see and how you like to travel. 

To get the most out of your experience in Japan, why not schedule a free Japan itinerary consultation with us today?

Until next time, happy travels!