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Tourists take pictures of early flowering trees of sakura in front of the store in Tokyo. Early flowering Sakura trees in Tokyo, especially varieties such as Cavaz-Zakura, usually begin to bloom in late February to early March, ahead of the more common cherry kraki yosin, which peak in late March to early April. The phenomenon is tied to softer winter and specific varieties, offering a living pink spectacle on the urban background of Tokyo before the main cherry season begins.
Images Sopa | LightRockket | Gets the image
In recent years, foreign tourists have had a disproportionate effect on Japan’s economic growth. However, analysts can start to decrease when the yen strengthens.
Tourists were a key engine of the Japanese economy revival. Many have attracted the weakness in it, which made purchases, entertainment, transport and at night it remains cheaper.
What happens when the tide turns and the yen is strengthened?
Japan’s travel costs have soared in recent years. Indeed, input tourism has made half According to the MasterCard Economics Institute, according to the MasterCard Economics Institute.
This means a sharp change in the composition of the fourth largest economy in the world. Tourism made an average of 0.1 percentage points to GDP from 2010 to 2019 at a time when GDP growth in Japan averaged 1.2%.
The May’s report showed that Japan made Japan a more attractive shopping point. This is in sharp contrast to other countries of the world, Chief Economist of Mei in the Asia -Tzakhakan David Mann said where tourists prefer to spend on experience, such as going to a restaurant, concert or bar.
Japan was one of the most popular travel places in Asia. Yes, according to the tourist organization of Japan, the country has seen Record 36.9 million arrival for visitors throughout 2024.
Not only did tourists spend more, with previous numbers indicating that the annual expenses of international visitors in Japan in 2024 reached A Write down the high 8.1 trillion yen ($ 54.06 billion), a massive increase by 53.4% ​​compared to a year ago.
The average individual expenses among foreign travelers in Japan increased by 6.8% to 227,000. However, some Clement’s conditions that have allowed this higher interest of tourism may be canceled.
Higher internal inflation has pushed the Japanese Bank to increase interest rates, unlike other major central banks. That in turn caused he On March 11, strengthen the maximum against the US dollar.
Japanese tourism industry in Japan
Yujiro Goto, head of the FX strategy for Japan in Nomura, said CNBC that the weaker entrance tourism would be negative for Japan’s GDP growth.
This is because the weakness of the yen became one of the key reasons for the acceleration of incoming tourism. It is expected that considerable appreciation of the currency to cancel this trend.
The last time was seen as a trade on 148.26 against Greenbek, strengthening about 7.2% compared to the maximum of 2025 in 158.87.
A little gratitude to he was on historical lows “as 161 to 146, so far, the USD may not change the tendency in my opinion,” Goth said.
Min Joe Kahn, Senior Economist of Japan and South Korea in Dutch Bank Ing shares, but also noted that the incoming tourism could still grow, given that the number of Chinese tourists has not yet resumed to the previous level.
“The measures announced over the weekend to increase consumption also include support for increased wage growth and stimulating Chinese asset markets. This can increase Chinese tourism,” she added.
Beijing on Sunday rolled up A plan for raising consumption, calling for salaries raising, as well as “several measures” to stabilize the stock market.
The weaker growth of tourism does not necessarily mean that the expansion of Japan’s GDP will fall from the cliff. Mann Meng said that the contribution of internal consumption in Japan will improve, given the strong job market and raising wages.
In this photo taken on February 20, 2025, 634-meter (2080 feet) Tokyo Skytra (L) was shown from the train line near the Japanese capital.
Kazuhiro Nogi | AFP | Gets the image
Japan’s largest labor union announced last Friday that he managed to provide on average By 5.46% increase of wages Since April its largest growth in 34 years.
“Thus, tourism can alleviate, but then internal consumption can take over as a height driver,” Man said.
If I were a Japanese grateful, Kang Ing said it would be a more positive effect on the domestic economy, which increases private consumption and services.
Tourism Management
Gota also stated that the gradual force in it could slow down the costs and improve the real salary among the domestic residents. This will help transfer GDP’s contribution from foreign costs.
Moreover, Goto said that while checks have become the main problem in regions such as Kyoto, foreign demand clearly supports the salaries and inflation positive feedback that Boj wants to achieve.
He also noted that “regional governments may consider higher taxes for foreign visitors (hotels, airports, etc.), which can support the Japanese fiscal situation when driving tourist flows.”
Mann came to the conclusion, saying that tourism was a much greater participant than anyone has been waiting for something in the last two years, and “will remain a significant participant in Japan’s economy, before it will shut down and replace slightly stronger deposits from internal consumer expenses.”
“The weakness of the yen will probably start to turn at least this year, but it will be a long process, not turn in just one -two months.” Mann added.
