of the 15 fastest-growing spots, according to a report from the Mastercard Economics Institute released on May 12, 2025. Japan continues to lead global tourism, with Tokyo and Osaka claiming the top two positions, driven by cultural allure and favorable currency trends.
The rankings, based on a comparison of summer flight bookings between 2024 and 2025, highlight Asia’s growing appeal. Tokyo, last year’s second-ranked destination, and Osaka are followed by Paris at No. 3, which saw a dip in visitors during the 2024 Summer Olympics. Shanghai ranks No. 4, with Seoul, Beijing, and Singapore also in the top 10. Two lesser-known Asian destinations, Vietnam’s Nha Trang and Japan’s Fukuoka, placed 11th and 13th, respectively. The list is rounded out by Palma de Mallorca and Madrid in Spain, and Rio de Janeiro in Brazil.
“Japan’s position as a travel powerhouse is unshaken,” said David Mann, chief economist for Mastercard, Asia Pacific. “Tokyo and Osaka remain magnetic for global tourists, blending rich culture with economic incentives like the weakened yen.”
Currency Drives Asian Travel Decisions
The report underscores the significant role of currency fluctuations in shaping travel trends, particularly for Asian travelers. In 2024, Tokyo was the world’s most visited city, fueled by a Japanese yen that hit its weakest level against the U.S. dollar since 1986. Although the yen has partially recovered, reaching 147.98 against the dollar as of May 13, 2025, it remains a key factor drawing visitors.
“Currency depreciation can boost tourism, but Japan’s response is exceptional,” Mann explained. “Its broad appeal amplifies the effect of a weaker yen.” For example, a 1% depreciation of the yen drives a 1.5% increase in visits from mainland China, compared to just a 0.2% uptick from countries like Germany, France, or New Zealand. Similarly, a slight drop in the U.S. dollar prompts more visits to the U.S. from Taiwan, Singapore, South Korea, and India.
“Travelers from Asia-Pacific are highly attuned to value,” Mann added. “In markets like China, Singapore, and South Korea, even a 1% currency shift can significantly sway travel plans.” In contrast, British travelers show little sensitivity to exchange rate changes, maintaining steady travel patterns despite currency fluctuations in destinations like Australia, Hong Kong, Japan, Switzerland, and the U.S.
Regional Travel Preferences
Interest in Asian destinations is largely driven by Asian, European, and American travelers. For Middle Eastern travelers, Asia tops summer travel plans, with Thailand seeing the sharpest rise in bookings, surpassing Japan. This shift reflects Thailand’s growing appeal as a cost-effective and culturally vibrant destination.
Beyond Asia, other regions are seeing notable travel shifts. Saudi Arabia, particularly Jeddah and Riyadh, is experiencing a surge in visitors, spurred by the government’s economic diversification efforts and increased business travel investments. These developments signal a broader transformation in the Middle East’s tourism landscape.
Conversely, the United States is facing a decline in international arrivals, particularly from Canada. A JPMorgan report from April 23, 2025, noted a nearly 5% drop in international air arrivals to the U.S. in February 2025, despite expectations of growth. Foreign spending in the U.S. reached $215 billion in 2024, equivalent to 0.7% of GDP. A 10% reduction in foreign visitors would have a minimal GDP impact—less than 0.1%—but could significantly affect tourism and education sectors. Foreigners accounted for 6% of U.S. tourism demand and over 10% of hotel and restaurant revenue in 2023, as well as 6% of higher education enrollment.
A weaker U.S. dollar could help reverse this trend, particularly among Asian tourists, who represented 40% of foreign travel spending in the U.S. in 2023. “A softer dollar could draw more Asian visitors, bolstering the U.S. tourism sector,” the JPMorgan report suggested.
Top emerging summer destinations
Flight bookings for June to September 2024 vs. 2025
| 1 | Tokyo, Japan |
|---|---|
| 2 | Osaka, Japan |
| 3 | Paris, France |
| 4 | Shanghai, China |
| 5 | Palma de Mallorca, Spain |
| 6 | Seoul, South Korea |
| 7 | Beijing, China |
| 8 | Madrid, Spain |
| 9 | Rio de Janeiro, Brazil |
| 10 | Singapore, Singapore |
| 11 | Nha Trang, Vietnam |
| 12 | Reykjavik, Iceland |
| 13 | Fukuoka, Japan |
| 14 | Hurghada, Egypt |
| 15 | Sharm El-Sheikh, Egypt |
For bookings through March.
Broader Travel Trends
The Mastercard report also highlights how economic and political factors are reshaping travel preferences well ahead of the summer season. While Asia’s dominance reflects its cultural and economic appeal, destinations like Saudi Arabia are emerging as new hubs for business and leisure travel. Meanwhile, the U.S. faces challenges in maintaining its share of international visitors, with visa policy shifts and economic factors potentially deterring travelers, including international students.
As summer 2025 approaches, Asia’s lead in global travel trends underscores its dynamic role in the industry. Japan’s enduring popularity, combined with emerging destinations like Nha Trang and Fukuoka, signals a vibrant season ahead, driven by value-conscious travelers and strategic economic factors.
