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Osaka, Japan's gritty second city, suddenly finds itself amid Asia tourist boom

Oct 17, 2017 (Japan Times) - Amid the gloom and struggle that Osaka has gone through in recent years, a tourism boom has been an unexpected boon for Japan's gritty second city.

The commercial roots and boisterous and friendly people of Osaka and the surrounding Kansai region provide a contrast to the relative coolness and formality of Tokyo that's winning favor with tourists from Northeast Asia.

The boom is boosting the economy. Duty-free sales at department stores in the region were up almost 60 percent in the first eight months of this year from the same period in 2016, according to the Bank of Japan.

The area's relatively high unemployment rate has dropped considerably, to 4 percent last year, while the number of companies in Osaka grew 16 percent in the 12 months through March, faster than in Tokyo or across the whole nation.

While Japan as a whole has benefited from a massive increase in tourism, it's especially pronounced in Osaka. Almost 10 million overseas tourists visited the city in 2016, a 363 percent jump over five years, versus the 188 percent increase seen nationally.

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Japan’s World Cup campaign ended in the cruelest possible fashion on June 29, as Gabriel Martinelli scored in the fifth minute of stoppage time to give Brazil a 2-1 victory over the Samurai Blue in their knockout match in Houston. Japan had led in the first half and were still level at 1-1 in the final moments, but Martinelli’s late strike sent Brazil into the Round of 16 and eliminated Japan from the tournament.

Strong earthquakes have continued to shake parts of Japan in recent weeks, with 11 temblors measuring lower 5 or above on the Japanese seismic intensity scale recorded across the country since April 2026.

A Kintetsu Railway train derailed inside Kyoto Station on the morning of June 29, forcing partial suspensions on the Kintetsu Kyoto Line for the rest of the day and causing long delays that hit commuters, students and tourists.

A section of stone wall at Hikone Castle, one of Japan’s few surviving original Edo-period castles and a National Treasure whose main keep remains intact more than 400 years after its construction, collapsed after heavy rain caused by Typhoons No. 7 and No. 8, Hikone city officials said.

Japan advanced to the knockout stage of the World Cup after a 1-1 draw with Sweden on June 25, finishing second in Group F and setting up a Round of 32 clash with Brazil in Houston.

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