
FEATURE: Cruise boom buoys Japan's post-pandemic tourism
When the Diamond Princess was quarantined off Yokohama in the early stages of the COVID-19 pandemic in 2020, Japan's cruise industry ground to a halt, its future clouded by fear and uncertainty.
Today, that industry is roaring back. Demand for maritime journeys with swimming pools among a host of luxury amenities and entertainment has surged due to pent-up wanderlust and a wave of new investments.
Japanese ports are seeing record domestic passenger numbers, signaling not just a revival in leisure travel, but a broader boost to local economies that rely on tourism.
Japan, an archipelago of over 14,000 islands and one of the largest economies in the world, has a relatively small cruise industry and modest vessels compared to the U.S., home of giants like Carnival Cruise Line.
According to the Ministry of Land, Infrastructure, Transport and Tourism, however, the Japanese cruise market grew significantly in 2024, increasing by 14.2 percent year-on-year to 224,100 passengers.
The number of international visitors entering Japan by cruise ship quadrupled to 1.4 million, nearly 60 percent of the record set in 2017.
Kentaro Matsuura, president of cruise travel agency Yutaka Club (Tokyo), estimates domestic passengers will exceed 250,000 in 2025 and may approach the 2019 record high of 356,600 next year.
With their core cargo business hit hard by U.S. President Donald Trump's import tariffs, Japanese shipping giants are developing cruise ships into thriving businesses that can produce stable income streams.
Due to tariffs, shipping companies NYK Line and Mitsui O.S.K Lines Ltd. (MOL) forecast 47.7 percent and 60.0 percent year-on-year declines in net profits, respectively, in their consolidated financial accounts for fiscal 2025.
NYK Cruises will launch the Asuka III on July 20, expanding its fleet to two ships, while Mitsui Ocean Cruises will add a third ship in the latter half of next year.
On the evening of May 5, the Mitsui Ocean Fuji, which MOL began operating in December 2024, passed under Yokohama Bay Bridge. Nearby, in the Port of Yokohama, Mitsui's Nippon Maru was awaiting departure. Also docked was the Cunard luxury liner Queen Elizabeth.
"I look forward to seeing the Asuka III," said a man viewing the ships.
At 52,265 gross tons and 230 meters long, the Yokohama-based Asuka III will be the largest passenger ship in the Japanese fleet. It will be decorated with frescoes by Japanese painter Hiroshi Senju, giving it the feel of a floating art gallery, and all 381 cabins will have private seaside balconies.
Her maiden voyage from July 20 to 26 will be from Yokohama to Hakodate and Otaru in Hokkaido. The costs per passenger will be between 984,000 yen ($6,800) and around 4.80 million yen.
In February, NYK Line and its subsidiary Yusen Cruises reached a basic agreement on a business alliance in which Oriental Land, which operates Tokyo Disney Resort, will take over the operation and management of cruise ships scheduled to enter service in fiscal 2028.
The main departure and arrival port will be Tokyo Bay, and shows featuring Mickey Mouse and other Disney characters will be held on board. A second vessel is also being considered for service.
To keep up with its rival, Mitsui O.S.K. Lines in March announced that it had also bought an additional sister ship (32,477 gross tons) from the U.S.-based Seabourn Cruise Line, the seller of the Mitsui Ocean Fuji hull, to begin operations in the latter half of next year.
"Mitsui Ocean Fuji has received a very positive response from customers due to the fact that they can enjoy the expansive ocean views from their cabin verandas," said MOL President Tsunemichi Mukai, adding that the addition of a sister ship will only strengthen the company's ability to attract customers.
The company plans to build two passenger ships at a European shipyard and launch them in the near future.
Related coverage:
Former Diamond Princess passengers mark 5 yrs since COVID outbreak
Disney Cruise Line makes Singapore its 1st home port in Asia
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

an hour ago
Ishiba Reiterates Determination to Stay On
News from Japan Politics Jul 24, 2025 22:05 (JST) Tokyo, July 24 (Jiji Press)--Japanese Prime Minister Shigeru Ishiba on Thursday reiterated his intention to stay in office despite his ruling bloc's bruising defeat in Sunday's parliamentary election. "I want to continue to make every effort to ensure that this agreement is steadily implemented and to dispel concerns among domestic businesses," Ishiba told reporters, referring to the agreement reached in Japan-U.S. tariff negotiations. "It's important for I and the president to implement the agreement steadily," Ishiba said of U.S. President Donald Trump. Japan has as many as 4,318 items for export to the United States, the prime minister said. "I think (business operators) are very worried about what will happen to their export items." END [Copyright The Jiji Press, Ltd.] Jiji Press


Nikkei Asia
2 hours ago
- Nikkei Asia
Mitsubishi Motors' Q1 profit plummets as Trump tariffs bite
Mitsubishi Motors says its April-June profit fell partly because of a 14.4 billion yen U.S. tariff impact. (Photo by Yuki Nakao) YUICHI SHIGA TOKYO -- Mitsubishi Motors on Thursday announced an 84% year-on-year decline in its first-quarter operating profit, a sign of the "unprecedentedly challenging conditions" that followed U.S. President Donald Trump's imposition of a 25% tariff on cars in April. The Japanese automaker's operating profit fell to 5.6 billion yen ($35.5 million) in the April-June quarter, in part because of a 14.4 billion yen tariff impact. The company does not have a car assembly plant in the U.S., making it reliant on foreign production bases for sales in that market.


Yomiuri Shimbun
3 hours ago
- Yomiuri Shimbun
Trump Agreed to Tariff Deal With Japan After 70-Minute Talks; U.S. President Tried to Trade Concessions for 1% Reductions
There was just about one week remaining until the Aug. 1 deadline when Japan and the United States reached a 15% tariff deal. Tokyo had managed to avoid the worst-case scenario of U.S. President Donald Trump's administration levying duties of 25% from next month. Japan succeeded in lowering not only what Trump calls 'reciprocal tariffs,' imposed on dozens of countries including Japan, but also the automobile tariff that was a top priority for this nation. Patience Economic revitalization minister Ryosei Akazawa faced off against Trump at the White House on Tuesday. The talks had been arranged just the previous day and represented the first such meeting since April. U.S. Treasury Secretary Scott Bessent and U.S. Secretary of State Marco Rubio were also present. According to sources involved in the negotiations, the U.S. side made detailed demands — asking Japan, for example, to provide a certain item in return for lowering tariffs by 1%, and to increase rice imports and boost investment and support for semiconductors. Trump was said to have pushed for a deal in which he would lower tariffs by 1% in exchange for each concession. 'Mr. Trump made demands, citing specific figures. It felt like we needed at least 10 people to handle it,' one source said. In response, Akazawa patiently persuaded Trump, using various bargaining chips. After about 70 minutes of talks, Trump finally agreed, stood up and asked Akazawa for a handshake. 'Automobiles are Japan's bedrock' In the negotiations that began in April, Akazawa prioritized the revision of a proposed automobile tariff. In their first face-off at the Oval Office, Trump threatened Akazawa, saying steel was the bedrock of America, and Akazawa riposted with 'Automobiles are the bedrock of Japan.' As negotiations progressed, the Japanese side concluded that it was impossible to get the United States to withdraw its demands and shifted its goal to a reduction. The United States and the United Kingdom reached an agreement on May 8 in which the U.S. levy on British vehicles was dropped to 10% in exchange for British carmakers being limited to exporting 100,000 cars a year to the United States. Japan has a bitter history of voluntarily restricting its automobile exports to the United States in response to trade friction in the 1970s. Focusing on avoiding a limit on the quantity of its auto exports, Japan gradually lowered its goal, believing that 'if the United Kingdom was hit with 10%, it will be hard for Japan to get a 10% tariff,' according to a Japanese government official. The negotiations made significant progress in mid-May, according to Japanese government officials. The Japanese side presented investment plans in nine areas, including automobiles, iron and important minerals and also proposed the integration of supply chains. U.S. Commerce Secretary Howard Lutnick and others praised the proposals, and an agreement was reached between the ministers at the end of May. Before the Japan-U.S. summit in June, Prime Minister Shigeru Ishiba told those around him that 'negotiations are 90% complete.' However, Trump was not satisfied with the plans and increased pressure on Japan, saying Japan was 'very tough' and 'so spoiled.' He hinted at raising tariffs to 30%-35%. Mission accomplished Nevertheless, Japan did not change its proposals. Instead, it changed the way it prepared documents and explained them in order to gain Trump's understanding. Lutnick, meanwhile, explained the proposals to Trump nearly 10 times, and the green light was given for an agreement in the middle of July. The day before Tuesday's meeting, Lutnick invited Akazawa to his home to rehearse the meeting. After the meeting with Trump, Akazawa posted on X 'Mission accomplished.' A senior government official recalled: 'Only Trump has the authority to make the final decision on the numbers. Some countries have had their decisions overturned at the last minute. We could not let our guard down at all.'