Rising Tide: Foreign Visitor Spending Transforms Japan’s Economic Landscape

There is a significant growth in spending by foreign visitors in Japan, positioning it as the country’s second-largest export category. This shift underscores a move towards services over goods in Japan’s export profile. Key points include:

1. Spending Growth: Foreign visitor spending in Japan reached an annualized 7.2 trillion yen in early 2024, up from 4.6 trillion yen in late 2019 before the COVID-19 pandemic.

2. Comparison with Goods Exports: While it remains less than auto exports (17.3 trillion yen in 2023), it surpasses electronic components and steel, which were Japan’s second and third largest exports respectively.

3. Growth Rate: Spending by foreign visitors has grown over 60% in the five years leading up to early 2024, outpacing the growth rates of traditional exports like autos and steel.

4. Impact of Exchange Rates: The weakening yen has made Japan more affordable for international travelers, contributing to increased spending.

5. Shift in Spending Patterns: There has been a decline in shopping expenditures among foreign visitors, with a corresponding increase in spending on leisure activities, accommodations, food, transportation, and tours.

6. Regional Tourism Challenges: Despite the influx of visitors, there are challenges such as insufficient tourism infrastructure outside major cities, labor shortages in hospitality and aviation, and issues related to overtourism.

7. Post-Pandemic Recovery: Japan’s tourism sector has rebounded strongly post-pandemic, surpassing pre-COVID levels in terms of both visitor numbers and spending.

Overall, the growth in spending by foreign visitors highlights tourism as a crucial component of Japan’s economy, contributing significantly as a service-based export sector.

Visit : http://indojapanpulse.com/

Subscribe to YouTube Page:
https://www.youtube.com/channel/UCwk4e_pL0o5eyUvkIC7cQZA/featured

Like LinkedIn Page:
https://www.linkedin.com/company/indojapanpulse

Join Facebook Community:
https://www.facebook.com/groups/436167087220812/?ref=share

We can be reached at:
contact@IndoJapanPulse.com