Foreign Visitors with Record High

Japan National Tourism Organization on Tuesday released a report of foreign travelers in Japan last year, marking the greatest number in its history. Whole amount of foreign travelers last year were 19.7 millions and their total consumption rose up to ¥3.47 trillion, both of which far exceeded the result of previous year. Main supplier was apparently China with high economic growth. But, it is also China which casts broad shadow on tourism in Japan.

Significant drop of the value of Japanese yen encouraged foreign travelers visiting Japan. The Chinese increased to 4.99 millions, mostly doubling the number of the previous year. 1.22 millions of them came to Japan on great passenger ships that could send thousands of people at one cruise. After arriving ports, they were carried by busses to sightseeing spots like Kyoto or shopping capital, Tokyo. South Korea and Taiwan followed China with travelers of 4.00 millions and 3.67 millions.

Behind the scene, Japanese government has been delivering policies to promote Japan tours. Ministry of Finance is broadening tax exemption for foreigners, while it is squeezing Japanese people’s daily life with higher consumption tax rates. Deregulation in visa issuance to Asian travelers also contributed historical increase of Japan visitors.

Japanese government upholds a goal of 20 million of foreign travelers in 2020, when Tokyo Olympics will be taken place. Now, they are considering higher line for the goal. One problem for the policy is accommodation. Running rate of hotel rooms has been as high as 80% to 90% in Tokyo, Kyoto or Osaka. While the government is discussing deregulation for private housing for accommodation, residents around the facilities may oppose it.

Local traditional Japanese style hotels are not fully prepared for foreign visitors. Some of them do not have wi-fi network. There are a number of local hotels with old-style restroom, which most foreigners would not know how to use. Running rate of those hotel rooms is contained to around 40%.

Having said that, it is obvious that this boom may not last forever. “Considering uncertainty of the future of Chinese economy, consecutive abrupt increase of visitors is not realistic,” said Minister of Land, Infrastructure, Transport and Tourism, Keiichi Ishii. Chinese economy has been showing obvious volatility from the beginning of this year. On the same day of new record of visitors, Chinese economic growth in 2015 marked significant drop as low as 6.9%. Sustainable business in tourism is more than necessary.