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Tourism Brings Crowds, Not Cash: Kyoto’s ¥1.5T ($10B) Debt
Kyoto, the “Millennium Capital,” was Japan’s capital for over a thousand years. Even the name Tokyo — meaning “East of Kyoto” — is a reminder of its former centrality. Once the heart of Japan, today something has changed: Japanese tourists are quietly leaving the city.
As one colleague told me, “Kyoto didn’t even feel like an option.” During this year’s Golden Week (Spring Holidays), not a single person I know chose to go there. Even one who’s originally from Kyoto hesitated to return home. “Too crowded,” she said. I couldn’t agree more.
This article explores the paradox of Kyoto — a city overwhelmed by tourists yet trapped in a long-term financial crisis. What lies beneath the surface? I’ll break down the issue from three unique angles: religion, historic townscapes, and university students.
Kyoto, where Japanese are leaving, faces a serious financial crisis.
Fewer Japanese travelers are choosing Kyoto lately. In March 2025, overnight stays by Japanese visitors in Kyoto plunged 16.1% compared to the previous year — and this drop has continued for nearly two years.
