The number of students going abroad for study purposes continues to grow exponentially, even despite the global economic downturns of recent years. One exception is Japan, where the number of students going overseas has continued to decline since the mid-2000s. This paper first explores various explanations for the persistent decline in Japanese study abroad based on a review of the literature and official sources. In particular, an analysis is done of the media's reporting of Japanese youth's supposed disinterest in overseas study. Secondly, questionnaire data from a survey of Japanese university students' perspectives on study abroad is analysed to help shed light on the motivating and de-motivating factors influencing the decision to study abroad. Lastly, implications are made regarding the potential consequences of decline in study abroad for Japan and its system of higher education.