Airbnb's Profound Impact: Boosting Japan's Economy and Tourism in 2024

The Economic Impact of Airbnb in Japan

In 2024, Airbnb made a substantial contribution to Japan's economy, with an estimated impact of approximately 770 billion yen on the nation's Gross Domestic Product (GDP). This figure represents about 1.6% of the total GDP generated by the travel and tourism sector in Japan. The revenue generated through Airbnb activities supports around 87,800 jobs, contributing significantly to wage earnings, which amounted to approximately 140 billion yen.

The data, compiled by Oxford Economics under a commissioned study, reveals that the majority of Airbnb guests in 2024 were international travelers, accounting for 70% of total guests. However, the trend of domestic travel is also on the rise, with domestic guests representing about 30% of bookings, marking an increase compared to 2019, prior to the global COVID-19 pandemic.

Guest Spending Insights

Airbnb guests in Japan spent a combined total of 715 billion yen in 2024, predominantly on expenses beyond just accommodation. On average, these guests stayed for about three days, spending around 26,000 yen daily on various activities, including dining, shopping, and local transportation. Notably, shopping emerged as the largest category of expenditure, accounting for roughly one-third of every 10,000 yen spent on expenses other than accommodation. Dining out was the second highest expense, with 2,700 yen out of every 10,000 yen, followed by arts and entertainment, transportation, and groceries, each costing about 1,400 yen.

Strengthening Local Economies

The income generated from hosting on Airbnb plays a critical role in revitalizing local economies. Earnings from hosting assist in the upkeep and management of accommodations, in addition to supporting housekeeping services and individual consumer spending. This cycle ultimately aids in maintaining local businesses and commercial activities.

Real Host Stories

Take, for instance, the story of Tairo and Aiko Toyota in Osaka. They have transformed their home into an Airbnb, welcoming guests warmly with a deep love for their hometown. Tairo believes that Osaka is a city that doesn't need a guidebook; it's best understood through the locals who guide visitors. The couple's carefully curated space showcases quality furnishings and local artwork, celebrating the brilliance of neighboring artisans. Through each purchase, they support local enterprises and strengthen community ties, encouraging guests to visit nearby shops and markets.

Many guests initially plan for just a one-night stay but become captivated by Osaka's vibrant atmosphere. Tairo recalls instances where guests, drawn to the local charm, extend their stays from one night to one week or even ten days.

Wider Economic Ripple Effects

In total, Airbnb's operations accounted for 1.6% of Japan's travel and tourism GDP in 2024. This statistic translates to supporting one in every 67 jobs in the tourism sector. Furthermore, the economic activities driven by Airbnb extended beyond tourism, impacting real estate with contributions of 152 billion yen, while wholesale and retail saw an increase of 139 billion yen, and the transport and warehousing sector benefited from 127 billion yen.

The employment supported by Airbnb also spanned diverse sectors, with the food service segment benefitting approximately 17,000 jobs, followed by wholesale and retail (14,400 positions) and manufacturing (11,400 roles). These jobs have contributed significantly to wage growth across various sectors, with notable increases of 29 billion yen in transport, along with 25 billion yen in both wholesale and retail, and manufacturing. This demonstrates the far-reaching and meaningful economic impact that Airbnb has had on local communities.

Changing Travel Preferences

Since the onset of the COVID-19 pandemic, there has been a noticeable shift in the destinations selected by Airbnb guests, with many opting for non-urban areas. By 2024, the proportion of bookings in non-urban regions rose to 6%, an increase from 4% in 2019. This change reflects a growing desire among domestic travelers to explore areas outside of Japan's major cities, motivated by health and safety concerns, as well as a curiosity to discover hidden gems.

A Commitment to Sustainable Growth

James Lambert, Director at Oxford Economics Asia, emphasizes the critical role played by Airbnb in supporting domestic tourism. He highlights the growing percentage of Japanese users on the platform since the pandemic, as Airbnb enables more travelers to explore enchanting off-the-beaten-path cities and towns, thereby deepening community connections. Airbnb’s efforts contribute significantly to the diverse landscape of Japan's tourism market, gradually distributing travelers away from crowded metropolitan areas while enhancing regional economies.

Through connecting travelers with unique accommodations and experiences across Japan, Airbnb promotes local business, empowers small enterprises, and supports the livelihoods of everyday citizens.

This article showcases the profound effect of Airbnb on Japan's economy and its vital role in the tourism sector, illustrating how hosting fosters community, boosts local businesses, and promotes sustainable economic growth across the country.