Foreign tourist numbers to Japan have increased

International visits to Japan nearly doubled in October 2022, as the country’s industry is resuming following over two years of pandemic restrictions.

Japan lifted some of the world's most stringent border restrictions on October 11, and as a result of this move, Prime Minister Fumio Kishida is relying on tourism to refuel the economy, especially with the accelerated depreciation of the yen, the country’s national currency.

According to the Japan National Tourism Organization, the number of foreign visitors for both business and leisure sectors increased to 498,600 in October, accounting for a huge 2,155% increase when compared to 2021. 1.52 million international tourists have visited Japan this year, a negligible amount if considering the government's 2020 previous estimation of 40 million, which was tied to the Summer Olympics and eventually deferred.

According to Prime Minister Kishida, the government's goal is to attract 5 trillion yen in yearly visitor expenditure, but that may be too much for an industry that has wilted since the outbreak. As official data shows, hotel employment declined 22% between 2019 and 2021, and service personnel who found other occupations may be difficult to entice back into the sector.

Significant increases will also be challenging to achieve until Chinese visitors return. However, new tendencies are more promising, with the market receiving rising demand from tourists in South Korea, Taiwan, Hong Kong, and Singapore.

Japan has announced it will also resume cruise ports activity starting March 2023.

 

Source: marketscreener.com