Japan's Forgotten Economic Hub? A Complete Guide to Kyushu
Me and my wife, both born on this lovely, but forgotten island, went on our honeymoon to Kyushu, and it was… AMAZING! The people, the food, the sights honestly blew our minds away, even though we’ve been here countless of times before.
It truly made me realize how much tourists that just travel to Tokyo, Osaka and Kyoto are missing out on. Kyushu has much more pristine nature, better food, and most of all, much nicer people. I'd go as far as to say that after spending 10 days in Kyushu, the food and service in Tokyo feels disturbingly bad.
Therefore, I'm dedicating this article to shining some much-needed light on this incredible region. My hope is to make you, my fellow reader, grasp its amazing qualities. But, in true KonichiValue fashion, you can bet I'll be serving up the honest truth – warts and all. To give you a real taste, I'm peppering this piece with images from my honeymoon, so you can see for yourself the beauty and, yes, perhaps some of the charming imperfections that make this place so uniquely captivating.
For decades, this southern island, Japan's third largest, has kind of sat on the sidelines of the country's economic superstar list, often overshadowed by the giants like Tokyo, Osaka, and Nagoya. The usual story you hear is that Kyushu is shrinking, aging, and not quite keeping up.
But hold on, because that's not the whole picture, not by a long shot. While Japan as a whole is grappling with a birthrate that’s heading south faster than a migrating crane in winter – and Kyushu definitely feels that pinch – there’s a fascinating story of contrasts unfolding here. Some parts are indeed quiet, feeling the strain of fewer young folks and industries that have seen better days. If you're thinking of settling down or investing, you'll want to know about these spots. But then there are these other areas, buzzing with an energy that’s frankly surprising and incredibly exciting.
Let's get into the nitty-gritty, city by city, and see what’s really going on.
Kyushu: A Shrinking Island with Pockets of Boom
Across Kyushu, the story is one of population shifts. Overall, yes, numbers are trending down. But it's not a uniform blanket of decline. The main driver is Fukuoka Prefecture, largely thanks to Fukuoka City, which has been the island's consistent people-magnet. Between 2015 and 2020, for example, Fukuoka City itself saw its population jump by a solid +4.8%. Compare that to cities like Nagasaki and Kitakyushu, which saw drops around 4-5% in the same stretch.
Now, let’s zoom in on the main players:
Fukuoka City: Kyushu’s Shining Star
Population Boom Town
Forget the national trend of stagnation; Fukuoka City is on a roll. It hit 1.613 million people in 2020 after adding nearly 75,000 residents in just five years (+4.9%). That’s the best growth rate among Japan’s 20 major designated cities. It's a rare urban success story in a country grappling with fewer people. While World Population Review notes the broader "Fukuoka Urban Agglomeration" (which includes surrounding areas and likely Kitakyushu) might see a slight dip to 5.46 million by 2025, Fukuoka City itself has been the engine. This difference is key: the city proper is booming, even if the wider region has its struggles.
Part of Fukuoka's magic is that it’s just a great place to live. It's a "compact city" – the airport is famously just a 10-minute hop from downtown. Subways, trains, buses are all excellent. Fukuoka actively chases international conferences, events, and tourists, billing itself as "Kyushu’s gateway to Asia." Pre-COVID, Fukuoka Airport was handling nearly 15 million passengers a year, with direct flights all over Asia. The port was also a cruise ship hotspot, especially for visitors from China and Korea.
Economic Engine & Startup Magnet
This city is the undisputed economic heart of Kyushu. Fukuoka Prefecture alone chips in about 3.4% of Japan’s entire GDP. Between 2011 and 2020, a smart development strategy spearheaded by the "Fukuoka D.C." public-private council reportedly created 60,000 new jobs and pumped an extra ¥2.8 trillion into the city's economy.
How? By getting smart about attracting businesses and bright young minds. Since declaring itself "Startup City Fukuoka" in 2012 and being named a "National Strategic Global Startup & Job Creation Special Zone" in 2014, it's been all systems go. Think startup visas, tax breaks for entrepreneurs, a one-stop "Startup Cafe," and the massive "Tenjin Big Bang" project, which is literally changing the skyline with new high-rises thanks to relaxed building rules. Tech companies and branch offices love setting up shop in Fukuoka, creating a cool tech scene that pulls in young professionals.
Tourism (and that Ramen!)
Tourism absolutely exploded here in the 2010s. By 2019, Fukuoka Prefecture was welcoming record numbers of international visitors – a big reason why foreign tourist numbers to Kyushu overall shot up 4.2 times in a decade! People come for the legendary Hakata ramen (it really is that good!), the yatai (street food stalls), shopping, vibrant festivals, or they just use Fukuoka as a launchpad to explore the rest of the island.
Even after COVID knocked tourism sideways, Kyushu saw a swift rebound, with foreign arrivals in late 2022 already back to around 90% of 2019 levels, and Fukuoka was right at the front of that recovery. Domestically, it consistently tops "most desirable city to live in" surveys. Why? Great city life, cheaper than Tokyo or Osaka, and you've got green spaces and beaches right there. This has even sparked a "U-turn/I-turn" trend, where Japanese who once left for the big city lights of Tokyo are coming back to Fukuoka for a better work-life balance.
In short, Fukuoka is a city that’s making its own luck. It’s a sharp contrast to what’s happening in some other parts of Kyushu. If you're looking for buzz, opportunity, and a city that feels like it's confidently striding into the future, Fukuoka is it. For living, it offers a dynamic urban experience, but property prices, while lower than Tokyo, are on the rise.
Kumamoto City: From Shaky Ground to Silicon Hopes
Holding Steady, Then… Boom!
Kumamoto City (population around 735,000 in 2025, a slight dip from 736,800 in 2024 was doing okay, holding its population relatively stable even as other regional cities shrank. Then came TSMC: In 2021, the Taiwanese semiconductor goliath announced a massive new factory (or "fab") in Kumamoto Prefecture, a joint venture with Sony and Toyota. The first plant, Japan Advanced Semiconductor Manufacturing (JASM), officially opened in February 2024 and started mass production by the end of the year. Suddenly, Kumamoto was on the global tech map.
The impact has been electric. Farmland outside Kumamoto City is sprouting apartment blocks, hotels, and car dealerships to cater to the incoming wave of workers and businesses. Wages and land prices have shot up. The "TSMC effect" is projected to be worth a staggering ¥20.77 trillion for Kumamoto's economy by 2030, generating around 3,400 direct high-tech jobs and attracting over 100 supplier companies. A second TSMC fab focusing on even more advanced 6nm chips is already planned.
Kumamoto Prefecture wasn't just lucky; it courted this. Historically, Kyushu was nicknamed "Silicon Island" (though that title faded a bit), hosting around 40% of Japan's IC chip production at one point. Companies like Sony have been making camera sensors in Kumamoto for years. The prefectural government rolled out the red carpet with incentives – up to ¥150 million for foreign manufacturers and even up to ¥500 million for domestic firms moving regional HQs there. Now, building on the TSMC momentum, Kumamoto Prefecture in March 2025 unveiled its "Kumamoto Science Park Promotion Vision." This ambitious, decade-long plan aims to create a massive R&D hub centered in Kikuyo (where JASM is), focusing not just on chips but also AI, autonomous driving, and robotics.
This rapid growth isn't without headaches. There's a significant labor shortage, with Kyushu expected to need around 1,000 additional semiconductor workers annually. Traffic congestion around the new industrial areas is a big issue. Housing is tight, and local infrastructure is straining to keep up. It’s the classic boomtown dilemma: Fantastic opportunity, but a race to manage the side effects.
Kumamon & Culture
Kumamoto leverages its cultural appeal too. The Castle, the stunning Mount Aso caldera (a UNESCO Global Geopark), and the Amakusa islands are big draws. And then there's Kumamon. This ridiculously popular rosy-cheeked black bear mascot is a marketing phenomenon, generating over ¥100 billion in merchandise sales in 2015 alone and acting as a global ambassador for the region.
So, Kumamoto is a place in major transition. The TSMC wave is transforming its economy from one reliant on agriculture and local manufacturing into a high-tech powerhouse. For investors, the semiconductor ecosystem is clearly a hot ticket. For those thinking of living there, expect a dynamic environment with growing job opportunities, especially in tech, but also rising costs and the typical strains of rapid development. It’s a place betting big on a high-tech future.
Kagoshima City: Holding On with Volcanoes, Tourism, and a Space Dream
Slow Decline, Beautiful Backdrop
Kagoshima City, at Kyushu’s southern tip (population around 579,000 in 2025, down from 581,000 in 2024), is a place of incredible natural beauty, dominated by the ever-present, smoking Sakurajima volcano in its bay. It's been seeing a gentle population decline, losing about 1.1% between 2015 and 2020. Like many regional cities, it sees its young people leave for bigger opportunities, and deaths outpace births. However, Kagoshima Prefecture has a slightly higher fertility rate than some other parts of Japan, which has softened the blow a little.
Economy: Local Focus, Green Shoots, Space Hopes
Kagoshima's economy is diverse but leans local: agriculture (think green tea, sweet potatoes, and those famous black pork – kurobuta), some manufacturing, and a noticeable push into renewable energy. They were early movers in solar, opening a large 70MW mega-solar plant in Kagoshima Bay back in 2013.
The Kyushu Shinkansen's arrival in 2011 was a big deal, slashing travel time to Fukuoka to about 1 hour 20 minutes. This definitely boosted tourism and business travel. You see new shopping complexes like AMU Plaza near the station. But it’s a double-edged sword: easier to visit, but also easier for locals to leave. The prefecture is home to the Tanegashima Space Center, Japan's main rocket launch site, known as one of the most beautiful launch sites in the world.
Tourism is Key
Kagoshima really leans into tourism. Sakurajima is the star, but there's also Yakushima Island (a UNESCO site with ancient cedar forests) and Ibusuki (famous for its unique sand baths).
Pre-COVID, cruise ships were a common sight, especially from Asia. Domestic tourism also got a bump from the Shinkansen. The region is part of a JAL/JTB project launched in April 2025 to promote regional travel to foreigners, capitalizing on the Expo 2025 in Osaka. In January 2025, foreign tourist arrivals to Kyushu (excluding cruise passengers) hit a record 409,987 for the month, and Kagoshima Airport saw over 70,000 of those arrivals in 2024. However, many tourism jobs are lower-wage, and it’s not enough to stop the youth drain comely.
Kagoshima City offers housing incentives for young families and promotes "UIJ-turns" (encouraging city folk to relocate for a slower lifestyle or remote work). The pleasant climate and lower living costs are a draw for some.
Kagoshima is stunning, and if you love nature, history, and a slightly more laid-back vibe, it’s a fantastic place to visit. For living, it offers a good quality of life but perhaps fewer dynamic job opportunities outside tourism, agriculture, and some niche manufacturing or renewable energy sectors. It’s a city trying to balance preserving its charm with finding new ways to keep its economy and population stable.
Nagasaki City: History, Heartbreak, and a Hard Road to Reinvention
Nagasaki’s story is tough. Its population (around 397,000 in 2025, down from 400,000 in 2024) has been in one of Japan's steepest declines.
It lost nearly 5% of its residents between 2015 and 2020. Rapid aging, very low fertility, and decades of young people leaving for jobs elsewhere have taken their toll. The population actually peaked way back around 1970.
The saddest part about this is that Nagasaki was the cradle of Japan’s industrial revolution – Mitsubishi’s shipyards, coal mines. But shipbuilding orders dried up, mines closed. Mitsubishi Heavy Industries’ huge Nagasaki Shipyard has had to scale back. The city's dramatic, hilly terrain, while beautiful, means less flat land for big new factories compared to other places. They're trying to pivot – some high-tech research (Nagasaki University is known for tropical medicine and renewable energy studies), software outsourcing, call centers. Offshore wind and fish farming are future hopes. But these haven't been enough to fill the gap left by the old heavyweights.
Rich History, Tourist Draw
Culturally, Nagasaki is a goldmine. It was Japan’s only window to the West for centuries. Then, the tragic second atomic bombing. This history means powerful tourist sites: the Peace Park, Atomic Bomb Museum, Glover Garden’s old European mansions, and the Hidden Christian Sites (another UNESCO designation).
Pre-COVID, Nagasaki was a massive hit with cruise ships, especially from China; its Chinatown and souvenir shops were buzzing. The Huis Ten Bosch Dutch-themed park in nearby Sasebo is another big draw, and it got a new Hong Kong-based owner in 2022 aiming for a refresh.
Tourism definitely helps (Nagasaki Prefecture saw a good slice of Kyushu's inbound boom), but it’s often seasonal, lower-wage work, and the pandemic showed the risks of relying too heavily on it. DMO Nagasaki reported that visitors from outside the prefecture in March 2025 were up 110% year-on-year, showing some positive momentum.
The Nishi-Kyushu Shinkansen opened in September 2022, connecting Nagasaki to Takeo (you still have to transfer to reach Fukuoka faster). It's cut travel time to Fukuoka by about 30 minutes and is meant to boost tourism and business. A sleek new station and redevelopment around it are part of the plan. The big question is whether easier access to Fukuoka just makes it easier for more people to leave Nagasaki. The city's biggest gamble was a bid for a massive casino-integrated resort (IR) at Huis Ten Bosch, a ~$3.8 billion project they hoped would be an economic miracle. But in late 2023, the national government said no, citing financing worries. That was a huge blow.
Fighting the Decline
Nagasaki offers small incentives for people to move back or relocate for remote work (the picturesque Goto Islands have lured some tech workers with subsidies and fiber optics). They're also consolidating services like schools as the population shrinks, trying to maintain quality of life for the largely elderly remaining population. Initiatives like the one in Iki City (Nagasaki Prefecture), an "SDGs Future City" project started in 2018 with Fuji Xerox, aim to revitalize the local economy and environment. The new Nagasaki Stadium City, a ¥100 billion project opened in October 2024, is another bold attempt to create a new hub for sports, entertainment, and business.
Nagasaki is a city with a profound soul, incredible history, and a poignant beauty. It’s a must-visit for anyone wanting to understand Japan. But if you're thinking of living or investing here, you need to be aware of the serious economic and demographic headwinds. It’s a place of immense character, but it’s fighting an uphill battle. Unless a major new employer or a truly transformative industry arrives, the decline is likely to continue, albeit hopefully slowed by these new initiatives.
Beyond the Big Cities
Fukuoka's Expanding Suburbs: Some smaller towns near Fukuoka are actually booming as bedroom communities. Fukutsu City, between Fukuoka and Kitakyushu, saw its population jump 14.2% (2015-2020) – the fastest in Fukuoka Prefecture – as families sought affordable coastal living while commuting to Fukuoka. Itoshima and Kasuga/Onojo are similar stories. This shows Fukuoka's growth spilling outwards.
Miyazaki & Oita: Holding On
Miyazaki City, capital of its prefecture, has stayed remarkably stable (a tiny +0.05% growth 2015-2020, around 401,000 people). It's an administrative center and a bit of a resort/retirement spot in Japan's "sun belt."
Oita City (around 475,000, with a mild -0.5% decline 2015-2020) benefits from nearby Beppu's onsen tourism and its own industrial base (steel, petrochemicals). These cities show that with the right niche, decline isn't inevitable.
The Real Squeeze: Small Town Depopulation
This is where Japan's demographic winter hits hardest. Many rural Kyushu towns are shrinking fast. Makurazaki in Kagoshima lost 9% of its people in just five years. Misato in Kumamoto is a third of its 1947 size. These places face an aging crisis, with some genuinely at risk of disappearing.
Government programs like "Hometown Tax" (directing donations to rural areas) and grants for revitalization or attracting remote workers exist, but the pull of the cities is strong. This stark reality makes even the "declining" big cities look relatively stable.
What's the difference between Kyushu's thriving and dying cities?
Looking at this Kyushu patchwork, a few clear themes emerge:
City Hall Makes a Difference: Cities with a plan do better. Fukuoka’s "Startup City" strategy was a winner. Kumamoto’s aggressive pursuit of TSMC paid off. Cities that struggled to reinvent themselves, like Nagasaki and (until more recently) Kitakyushu, have seen sharper declines.
Jobs, Jobs, Jobs: People follow the work. Fukuoka created new-economy jobs. Nagasaki and Kitakyushu lost old ones without enough new ones to fill the gap. Universities matter too – they supply young talent and innovation. Fukuoka, Kumamoto, and Kitakyushu have major ones. The national government's push to get companies out of Tokyo with tax breaks is also starting to benefit places like Fukuoka.
Rails, Ports, and Roads: Big projects like the Shinkansen have a mixed but generally positive impact, boosting tourism and business links for places like Kagoshima and Kumamoto. Modern airports and ports in Fukuoka and Kitakyushu are vital for connecting to Asia. Good local transit helps keep residents.
Culture & Tourism: While not a silver bullet for population growth, tourism is a huge economic plus. Kyushu’s 4.2x jump in foreign tourists (2008-2018) was a massive boost for Fukuoka, Nagasaki, Oita, and Kagoshima. This also spurs infrastructure upgrades. The "Relax & Rejoice: Onsen Island Kyushu" slogan and the general appeal of its nature and food have definitely raised its profile. As my honeymoon showed, the attractions are genuinely world-class.
The Baby Deficit: Aging and low birth rates are the deep current pulling many areas down. Fukuoka, with its younger population, does better. Areas with very high elderly ratios, like Nagasaki, face a double hit of out-migration and natural decrease. Kyushu’s overall birth rates are a touch higher than Japan’s average, which provides a small buffer, but migration, especially from other parts of Japan, is the real game-changer.
Help from Tokyo: National programs like the Hometown Tax, regional revitalization grants, and schemes to get young people into rural towns are all in play across Kyushu. Fukuoka’s special zone status was a national nod. These can make a difference, though they are often trying to swim against a very strong tide.
The Outlook
For a region where its population is dropping fast, Kyushu is still very much alive!
Fukuoka is set to keep leading the growth, possibly with Kumamoto catching a strong second wind if the semiconductor cluster truly flourishes.
For cities like Kagoshima and Oita, the path is likely one of managing slow decline or achieving stability if their tourism and local industries hold up. Nagasaki and some of the smaller rural areas face a much tougher road and may continue to shrink unless something major changes.
Across the island, the aging population is the big elephant in the room. Smart city tech for elderly care, better healthcare infrastructure, and finding ways to encourage (or at least support) families will be critical.
At the end of the day, Kyushu is a collection of them. A story of a vibrant, modern city pulling ahead while its neighbors work hard to redefine themselves. A story of ancient traditions rubbing shoulders with cutting-edge technology. And a story of a "forgotten" island that, if you look closely, is shaping its own fascinating, complex future. It’s a place that definitely gets under your skin, in the best possible way.
alright youve convinced me, im booking a holiday
Plenty of gems - Amami Ōshima, Goto islands. Plus if I need to choose better residing alternative to Tokyo, Yokohama, Osaka and Nagoya (among “millioners”) , it will be Fukuoka.