News On Japan

Japan's Local Markets Struggle to Keep Their Roots

KYOTO, Jan 07 (News On Japan) - Nishiki Market in Kyoto and Kuromon Market in Osaka, both long known as local kitchens with deep historical roots, are facing a major turning point as a surge in inbound tourism transforms how they operate and who they serve.

At Nishiki Market, a number of long-established shops closed one after another toward the end of the year, while Kuromon Market has increasingly come to rely on foreign visitors for its survival. Behind these shifts is the rapid growth in the number of overseas tourists visiting Japan.

In Kyoto, where Nishiki Market had been bustling with shoppers preparing for the New Year, unexpected changes began to surface. Several traditional shops shut their doors at year-end, a development owners attribute in part to the overwhelming rise in foreign visitors. One shopkeeper, announcing a difficult decision to close, said it felt lonely to step away from a business that had long been part of everyday life.

Similar changes are evident at Kuromon Market in Osaka, often called “the kitchen of Osaka.” Prices have risen to levels that many Japanese shoppers find hard to justify, with some items such as tempura selling for around 3,800 yen. Products and pricing have increasingly shifted toward foreign tourists, making the market feel less accessible to local residents.

The situation has drawn attention even overseas. In recent years, posts have appeared on Chinese social media advising people not to visit Kuromon Market, citing high prices and heavy crowds. This has heightened concerns among vendors who remember how quickly foot traffic disappeared during the COVID-19 pandemic.

As the year-end shopping season approached, traditionally the busiest period for markets, Kuromon Market was once again crowded, but mostly with foreign visitors. At a tuna specialty shop that has operated there for about 20 years, sushi and sashimi are served mainly to tourists, with premium fatty tuna selling rapidly at prices of around 8,300 yen for eight pieces.

Kuromon Market dates back to the Edo period and was once a symbol of Osaka’s seasonal rhythms, packed with local shoppers ahead of the New Year. Around 15 years ago, however, its lively downtown atmosphere spread through social media, gradually attracting more foreign visitors. The market, which had struggled after the collapse of the economic bubble, found renewed vitality through inbound demand.

That recovery was abruptly halted by the coronavirus outbreak, when foot traffic vanished and shops closed one after another. After the pandemic subsided, foreign visitors returned in large numbers, and new inbound-focused businesses began opening. Market land prices have risen sharply, from about 320,000 yen per square meter in 2010 to more than 1 million yen today, making it difficult for anything other than high-margin tourist-oriented shops to survive.

Today, local customers account for only about 10 percent of Kuromon Market’s shoppers. Some residents say the area now feels more like an arcade than a traditional market, while others note that the sheer number of foreign visitors has made everyday shopping difficult, even if the change seems unavoidable.

At the same time, dependence on overseas visitors carries risks. Vendors worry that if foreign tourists suddenly stop coming again, as they did during the pandemic, the market could be left vulnerable.

In Kyoto, similar challenges are playing out at Nishiki Market, said to have a history of more than 400 years. A kamaboko shop that had operated for nearly 80 years decided to close on December 31. The second-generation owner cited advancing age, the physical burden of early-morning preparation starting at 5:30 a.m., and the lack of a successor. He also acknowledged that traditional fish cakes do not necessarily appeal to tourists unfamiliar with such foods, contributing to declining sales.

Walking through the market, the most common sight is now foreign visitors enjoying street food. Japanese customers are estimated to make up only about 20 percent of the total. The kamaboko shop was not alone in closing. A long-established pickle shop with nearly 160 years of history also shut its doors at the end of the year, saying it could not adapt to a market increasingly focused on eat-and-walk tourism rather than daily shopping.

Owners who closed their businesses said the decision was made with mixed feelings, accepting it as part of the times while mourning the loss of the old atmosphere they cherished.

After the New Year, Kuromon Market returned to normal operations following the year-end rush, but the scene remained largely unchanged, with foreign visitors accounting for roughly 90 percent of customers even on ordinary days. The head of the market association acknowledged that without foreign tourists, Kuromon’s recovery would have been difficult, given the challenges facing shopping streets nationwide.

Looking ahead, he said the goal is to encourage shops that Japanese customers can enjoy at reasonable prices, allowing local residents to feel comfortable returning while still welcoming tourists. Both local shoppers and visitors are valued, but finding the right balance remains a challenge.

As markets continue to search for a sustainable path forward, vendors and observers alike warn that focusing solely on short-term profits could erode the traditional atmosphere and craftsmanship that made these markets appealing in the first place, potentially driving away both locals and tourists in the long run.

Source: KTV NEWS

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