Japan's prime minister has launched an office focused on fostering "harmonious coexistence" with foreign nationals as an ultra-conservative party rode a wave of anti-immigration sentiment to unexpected electoral success.
In a shock to the long-ruling Liberal Democratic Party, previously fringe Sanseito won 14 seats in the 248-seat upper house on Sunday — becoming the fourth largest opposition party in parliament with its calls for a crackdown on "excessive acceptance of foreigners".
Sanseito had proposed "loyalty checks" for foreigners, as well as the suspension of social services to foreign residents and strict limits for hiring them.
The party's leader, Sohei Kamiya, recently told a rally that "under globalism, multinational companies have changed Japan's policies for their own purposes".
"If we fail to resist this foreign pressure, Japan will become a colony," he said.
Analysts say Sanseito's rise has exposed long-simmering public anxiety about rising costs, over-tourism, and a stagnant economy — all of which the party blames on foreigners.
Prime Minister Shigeru Ishiba last week announced the establishment of an office within Japan's cabinet to manage an influx of foreigners needed to prop up the economy, which is affected by a rapidly aging population.
While Japan needed to accept some degree of foreign workers and invite spending by tourists, Mr Ishiba said the behaviour of some foreigners was causing Japanese people to feel "anxiety and unfairness", according to public broadcaster NHK.
The appeal of far-right politics was primarily driven by economic factors, said Simon Avenell, a Japan expert at the Australian National University.
"First and foremost, it's about people's wallets," Professor Avenell said.
"Inflation has hit Japan hard — and for a country used to deflation for 30 years, this is a shock."
Japan's booming tourism sector is one of the few parts of the economy tracking well.
A record 36.9 million foreign visitors arrived in 2024 — a 47 per cent jump from the previous year and higher than pre-COVID levels.
"Tourists can afford to pay for an increase in price for a bowl of ramen while locals are struggling to buy a dozen eggs," Professor Avenell said.
"Buses are full. Trains are crowded. Locals feel pushed out of their own space," he said.
In polling, 29 per cent of voters told NHK that social security and a declining birthrate were their biggest concerns.
The price of rice, which remains a staple of the Japanese diet, has doubled over the past year.
In the face of economic anxiety, Sanseito's populist message has resonated with many Japanese voters.
The numbers behind the backlash
Sanseito was created in 2019, emerging from an ultranationalist YouTube channel.
The party's "Japanese First" pitch is that the country is under cultural and economic threat from outsiders.
Foreigners, they claim, are driving up prices, overcrowding cities, committing crimes and buying up Japanese land.
"The requirement for aspiring candidates and party members to submit nationality information, ensuring they're 'pure Japanese,' is appealing," one Sanseito supporter told Japanese newspaper The Mainichi Shimbun last week.
"I support limiting the acceptance of foreigners. It's scary to see Chinese and Kurdish people talking on the streets at night."
Almost 3.8 million foreign residents lived in Japan as of late 2024, just under 3 per cent of its total population.
This is in stark contrast to other wealthy nations. Almost one-third of Australia's population was born overseas.
But numbers of foreign residents have steadily climbed as Japan cautiously relaxed its immigration laws in recent years, for example, by creating special visa categories to address labour shortages in nursing and construction.
At the same time, tourism has exploded.
Japan had already seen the arrival of 18 million tourists by May this year — and cities like Kyoto and Tokyo are feeling the strain.
"The majority of Japanese citizens are not xenophobic," said Ryosuke Hanada, a Japanese citizen and PhD student at Macquarie University.
"What they want is an adjustment of the rules applied to temporary residents."
Mr Hanada said right-wing populism was feeding on real economic stress, visible demographic shifts, and a government that had, until now, avoided serious discussion about what integration or coexistence with foreigners might look like.
Foreign ownership and public benefits
Sanseito has capitalised on resentment over foreign access to public resources and property.
"There are no restrictions on foreign land ownership in Japan," Mr Hanada said.
"This causes the increase of property prices in the Tokyo metropolitan area."
There are no publicly available records of the nationality of buyers in Japan, but one survey of housing developers by Mitsubishi UFJ Trust & Banking Corp suggested that 20 per cent to 40 per cent of new apartments in central Tokyo were being purchased by foreigners.
While some high-end properties in Tokyo or ski towns have seen foreign interest and inflated local prices, there's no widespread evidence that this is happening across the country.
Foreign residents who stay over three months are automatically enrolled in Japan's national health insurance scheme and can apply for public housing, childcare and other social services.
Nana Oishi, an associate professor in Japanese studies at the University of Melbourne, said many Japanese felt public resources should be "prioritised for struggling Japanese nationals".
"These perceptions have contributed to the appeal of Sanseito's messaging," she said.
And there's another layer: anxiety about global power shifts.
With the Trump administration floating new US tariffs on Japanese exports, some voters feel the need to adopt a more self-protective stance.
"There's this sense that, well, the Americans are looking after themselves … maybe we should too," said Professor Avenell.
Sanseito's sharp rise has forced the Liberal Democratic Party, a centre-right party which has long dominated Japanese politics, to react.
Professor Avenell said the government wasn't "prepared for the debate" yet moved quickly when anti-foreigner sentiment was reflected in the polls.
"Whether the panel [to manage foreigners] does anything meaningful is still unclear, but the politics have shifted," he said.
Some regions are already acting on over-tourism.
Differential pricing — where foreigners pay more for attractions like temples or services — has been introduced in tourist hotspots.
Other ideas, such as capping tourist numbers or restricting purchases in sensitive zones, have gained traction but face legal and economic hurdles.
But Dr Oishi said despite over-tourism in cities like Kyoto, "most Japanese cities continue to welcome international tourists and foreign residents".
