Japan's inbound tourism sees optimism and record-breaking trends for 2024
Japan's inbound travel industry is anticipating a thriving year, with ski resorts and major destination hotels fully booked. The optimism follows a Japan National Tourism Organization (JNTO) report stating that 25.07 million foreign tourists visited in 2023, six times more than the previous year. Although below the pre-pandemic 2019 record, November and December 2023 arrivals surpassed 2019 figures.
Big recovery
Naomi Mano, president and CEO of an inbound travel firm, told South China Morning Post that Japan was notably delayed in fully reopening due to the government equating the coronavirus to the severity of Ebola until May of the previous year. Despite this, the recovery is commendable, and the depreciation of the yen has unexpectedly boosted Japan's position as an affordable destination.
Positive exchange rate
In February 2022, the yen was trading at approximately 115 against the US dollar, but it experienced a decline to the 150 range by October. This depreciation was attributed to a sequence of interest rate hikes implemented by the US Federal Reserve. Mano noted the current positive situation, emphasizing that many clients are spending more than before, thanks to the favorable exchange rate.
Rise in low cost travel
The affordable travel costs within Japan have led to a rise in budget-conscious travelers. This surge is exerting pressure on accommodation and transportation services, sparking concerns in popular destinations like Kyoto. There is apprehension that locals may soon voice complaints regarding challenges linked to overtourism due to lower travel expenses, as noted by Mano.
Shift in consumer behavior
The positive trend indicates a shift in consumer behavior, with travelers finding greater value in their expenditures compared to previous instances, as mentioned during her interview with SCMP. Similarly noteworthy was the positive report indicating that foreign tourists spent 5.29 trillion yen in 2023, exceeding the annual figure of 5 trillion yen for the first time.
Largest number of foreign arrivals were from South Korea
In 2023, South Korea led foreign arrivals with 6.96 million visitors, a sixfold increase from the previous year, while Taiwan contributed 4.20 million arrivals, according to JNTO statistics. Mainland China and Hong Kong followed with 2.43 million and 2.11 million visitors, respectively. The United States contributed over 2.05 million travelers. Tourists' growing interest in unique Japanese experiences has businesses bustling, surpassing pre-pandemic levels.
