Japan is imposing stricter immigration policies amid fears of overtourism and the burden of foreigners

Japan has become a tourist destination attracting record numbers of visitors in recent years due to its elegant parks, futuristic urban landscape and vibrant culinary scene.

The number of people settling in the country for long periods, whether to work or study, also reached its highest levels ever last year.

But recently, a series of stricter immigration policies imposed by the government has raised a question among people who have made Japan their second home: Is it time to say goodbye?

Japan has a long history of strict immigration policies and is known for its demographically homogeneous society.

However, the country is gradually opening its doors to foreign workers and seeking to attract more international tourists as it faces a worsening demographic crisis.

But these efforts were not entirely successful, as the phenomenon of “overtourism” and some reports (whether true or based on false perceptions) of some foreign residents flouting local rules, reinforced “Japan First” policies and reshaped the course of a society that was moving towards more openness, diversity, and welcoming of others.

Last month, the Japanese government, led by conservative Prime Minister Sanae Takaichi, announced an increase in fees for a range of visa categories starting in October, as part of a series of tougher measures towards foreigners.

Under the new rules, those wishing to settle in Japan permanently will have to pay 20 times more, $1,257, to obtain permanent resident status.

Fees for other work and study visas will also see a similar rise.

Justice Minister Hiroshi Hiraguchi stated that the goal of this significant increase in fees is to build "an orderly society in which foreigners coexist with Japanese citizens."

The move has raised concerns among some foreign residents in Japan about whether it marks the beginning of a trend of stricter policies toward newcomers.

The most affected groups

The radical changes affect those who plan to stay in Japan for as long as possible, specifically those applying for permanent residency, a status that gives its holder the right to work, enter the country without restrictions, and stay there indefinitely.

Starting in October, applicants will be required to prove income above the average income of Japanese families.

Those wishing to obtain permanent residency, starting next April, will also have to prove the availability of an expected retirement balance covering payments equivalent to 30 years, in addition to the need to master the Japanese language at an intermediate level.

“Since permanent resident status is considered the most stable of residency statuses, this amendment introduces necessary updates to the application of the requirements of capacity for independent livelihood and national interest, to ensure that applicants do not become a burden,” Hiraguchi said at a press conference in August.

Earlier this year, the government also tightened rules for foreign business owners, raising the minimum capital requirement for a “business manager visa,” a visa popular among entrepreneurs, from $31,000 to $126,000.

Impossible balance

The number of foreign residents reached 4.1 million last year, a record high representing about 3.4% of Japan's total population.

More than 930,000 Chinese citizens live in Japan, making them the largest group, while about 70,000 Americans also reside there.

These latest changes follow reports that some foreign residents have caused housing prices to rise or evaded payment of public health insurance fees.

Japan implements a national health care system that requires every resident to pay a monthly or annual fee to obtain medical services at a reduced cost.

Others have also been accused of exploiting relatively affordable residency policies to obtain residency by setting up shell companies.

The large influx of tourists has also upset some local residents, who accuse them of causing inconvenience and raising the cost of living, problems that political analysts say have sometimes been wrongly attributed to foreign residents.

This anger has been fueled by the rise of Sanseito, a small right-wing party that mobilized support against immigrants during the recent elections, putting pressure on the ruling Liberal Democratic Party government.

But new government policies have raised concerns among foreigners who have built their lives in the country.

Some business owners have complained that the new capital requirement, which was increased six-fold, has significantly reduced their cash flows, making it difficult for their businesses to continue.

Tokyo-based immigration lawyer Kazuki Yoda of Touch Immigration law firm said inquiries have increased dramatically recently as people seek to submit their applications before the new changes take effect.

He noted that the new rules are very strict, so he expects the number of people eligible for permanent residency to decrease significantly.

Takaichi's government is walking a fine line between the need to calm anger and the urgent need to bolster the country's workforce, at a time when neighboring countries, from South Korea to Singapore, are loosening restrictions to attract young talent.

Japan's fertility rate (the average number of children a woman is expected to have during her lifetime) fell to its lowest level in a decade last year, reaching 1.14, despite indications of a slight increase in the first half of this year, according to official statistics.

A fertility rate of at least 2.1 is considered necessary to maintain a stable population without relying on immigration.

As a result, Japan finds itself in a difficult situation, stuck between a shortage of local labor capable of filling the jobs, and a state of mistrust towards immigrants who can provide this labor.