Japan to boost aid for historical town development

Japan's tourism ministry plans to strengthen financial support for municipalities' town development efforts using historical tourism resources starting in fiscal 2026. It intends to provide subsidies to a wide range of local governments for projects such as renovating old buildings and preserving traditional events. The goal is to create more attractive sightseeing areas nationwide to diversify inbound tourist destinations and curb overtourism in major cities.

Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) plans to enhance financial support for town development initiatives by municipalities that leverage historical tourism resources, starting in fiscal 2026, which begins in April. The tourism ministry will offer subsidies to a broad array of local governments undertaking projects like renovating old buildings and preserving traditional events.

The initiative aims to foster more appealing sightseeing spots across the country. By diversifying destinations for inbound tourists, it seeks to alleviate overtourism pressures in major urban centers. According to the ministry, this move is intended to boost regional attractiveness and promote sustainable tourism growth.

In recent years, Japan has faced surging numbers of foreign visitors, leading to overcrowding in cities like Tokyo and Kyoto, while many rural areas with rich historical assets remain underutilized. This policy represents a targeted step to address these imbalances, encouraging balanced development nationwide.

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Japanese Prime Minister Sanae Takaichi delivering a speech on boosting the economy through investments in strategic fields like AI and shipbuilding.
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Takaichi vows robust economy through investments in 17 strategic areas

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Japanese Prime Minister Sanae Takaichi pledged on November 4 to boost investments in 17 strategic fields, including artificial intelligence and shipbuilding, to revitalize the economy. Her administration aims to finalize a growth plan by next summer. The strategy seeks to increase tax revenues without raising taxes through public spending.

The Japan Tourism Agency plans to launch a subsidy program for wide-area destination management organizations to intensively support efforts to attract tourists to regional areas. The initiative seeks to disperse inbound visitors and curb overtourism in major cities. It will request necessary funding in the fiscal 2026 budget starting next April.

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The Japanese government approved its basic tourism promotion plan on March 27, 2026, confirming a target to implement overtourism measures in 100 areas by 2030—building on a January draft. The plan balances resident quality of life with goals of 60 million inbound visitors and 15 trillion yen in spending.

The Japanese government spent about $16.5 billion on official development assistance (ODA) in 2024, according to the latest white paper on development cooperation. The paper outlines plans to spur private investment in developing countries through ODA.

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In Nagano Prefecture's Hakuba village, a post-COVID tourism boom drew 2.9 million visitors in 2025, revitalizing the economy. Yet rising costs, crowds, and cultural clashes have sparked resident unease. Local officials are introducing measures to manage the influx without overwhelming the community.

Minister of Culture and Tourism Sun Yeli stated at a news conference on people's livelihood during the fourth session of the 14th National People's Congress that China is ramping up efforts to promote the integration of culture and tourism, sharing its landscapes, culture, history, and modern life with global visitors. In 2025, inbound tourist trips exceeded 150 million, up more than 17 percent year-on-year, while spending surpassed $130 billion, an increase of over 40 percent. Authorities will continue improving the full inbound tourism chain to make travel to China easier.

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A diplomatic spat over Japanese Prime Minister Sanae Takaichi's remarks on Taiwan prompted China to warn its citizens against traveling to Japan, leading to fewer Chinese tourists, but Tokyo business owners largely dismiss concerns about sales impacts. Managers report that increased Japanese shoppers have offset the drop. In China, group tour cancellations are surging.

 

 

 

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