As part of its annual travel report released Monday, the Mastercard Economics Institute (MEI) revealed this summer’s most popular destinations and, to no one’s surprise, Tokyo took the top spot.
According to MEI’s analysis, Tokyo and Osaka will be the top two trending global tourist destinations this summer, fueled by the country’s long-term currency depreciation. Paris, France, ranks third just behind Osaka.
To create this list, Mastercard analyzed flight data from OAG Aviation, which tracked bookings for travel this summer (defined as June through September), and then compared the data to the same time period last year. These trending destinations are those with the largest relative gains in travelers.
The big takeaway? Japan has become a global tourism powerhouse, and it’s not just because of the cherry blossoms. Trips to Japan are basically on sale, and have been for over a year because the yen is weaker than it has been in about 38 years. And tourism is booming: Last year, Tokyo became the most visited city in the world, displacing Bangkok, which had held the top spot for the past decade. In March this year, Japan welcomed nearly 3.5 million foreign tourists, which broke another record according to the National Tourism Organization (JNTO).
“The summer travel landscape is being shaped by a combination of economic factors and evolving traveler preferences. Tokyo’s ascent to the top of the trending destinations list underscores the impact of currency fluctuations, making it an attractive option for many travelers,” says Michelle Meyer, chief economist at MEI.
Of course, airfare and hotel rates also drive travelers’ behavior, and we’re squarely in the age of rewards-based travel. These days, “loyal” travelers are gaming an increasingly complex web of branded credit cards, irresistibly compelled by the promise of a free breakfast, room upgrade, or, as they say in hushed tones: business class. Tokyo, where most international hotel chains allow guests to book rooms using loyalty points, is no exception. The latest example? The refurbed Park Hyatt Tokyo, that hotel from Lost in Translation (2003) starring Bill Murray, is offering rooms bookable with ‘World of Hyatt’ points this fall. It’s Suntory time.
Summer in San Juan
When you filter MEI’s results to single out consumer behavior from the US and Canada, Tokyo still remains number one. The runner up? Puerto Rico, America’s favorite Caribbean tax haven. For reasons we’ve covered in-depth in this recent article: Puerto Rico Tourism Hits Record-Breaking High, the island’s tourism boom is linked to the rise of Bitcoin and shows no signs of slowing.
“US and Canadian travelers are also flocking to beach towns like San Juan, Kahului, Punta Cana, highlighting the diverse motivations behind travel choices. As we navigate a complex economic and geopolitical environment, it’s crucial to understand how these trends influence travel decisions,” says Meyer of the trends.
Top 10 Summer Travel Destinations, from the US and Canada
These are the top emerging destinations for summer travel from the US and Canada:
1. Tokyo, Japan
2. San Juan, Puerto Rico
3. Kahului, Hawaii
4. Paris, France
5. Punta Cana, Dominican Republic
6. Calgary, Canada
7. Reykjavik, Iceland
8. Orlando, Florida, USA
9. New York, USA
10. Tulum, Mexico
These summer hotspots are not particularly surprising: Orlando’s Mouse is still King! Paris is always a good idea. New York City’s Broadway theaters and ‘grammable restaurants are packed and pulsing with energy. And Tulum just hosted yet another celebrity wedding.
But the top 10 destinations for summer travel globally (depicted in the photo above), do not include one single U.S. location. This underscores the other big takeaway from this report, which is a measurable reduction in travel to the U.S. from Canada and Europe. “According to the International Trade Administration (ITA), the number of travelers flying between the U.S. and Western Europe was down 1.2% YOY in March. Similarly, data from Statistics Canada shows that vehicle travel returning to Canada from the U.S. is down 32% YOY in March.”
Looking ahead, it’s shaping up to be a tumultuous year in travel. Global tariffs impact new hotel builds, material goods and shipping costs just like any other business. And a U.S. recession would surely slow global tourism growth. Notably, Skift Research recently lowered its 2025 global travel growth forecast from 6% to 9% down to 2% to 5% due to U.S. recession and global slowdown risks.
So, how far does my dollar go in Tokyo…?
To dive deeper into the findings, check out “Travel trends 2025: Purpose-driven journeys,” the full report from the Mastercard Economics Institute at mastercardservices.com.