Japan welcomed 3,081,600 tourists in March, a record high that the Japan Tourism Agency attributes to the weak yen and high demand for cherry blossom viewing. Consumption is also up, with the 8.56 million international arrivals over January to March spending 1.75 trillion yen (US$11.1 billion), an increase of 53 per cent over the same period in 2019.
The yen’s drop to a 34-year low against the dollar is spurring a surge in inbound tourism to Japan as the country becomes a cheaper destination for international travellers. Visitors are using the opportunity to splurge on higher-end accommodation, experiences, food and drink, and tours, say industry players.
Makarim Salman, founder and lead guide of Maction Planet, told TTG Asia that the weak yen has had “a positive impact” on his business.
“We’ve seen an increase in bookings from customers taking advantage of the favourable exchange rate,” he said, adding that customers are “spending more than usual” on shopping for luxury goods in Tokyo’s high-end Ginza and Omotesando districts, and experiences.
“Many of our clients are seeking out opportunities to delve deeper into Japanese culture at the higher end, such as private tea ceremonies, exclusive whiskey tastings, and bespoke sake tastings. We have also seen a growing interest in luxury experiences, such as staying at high-end ryokans and dining at Michelin-starred restaurants,” he continued.
Lindsay Colbert, managing director of Japan Ski Experience, is also seeing visitors spending more.
“We have noticed higher demand for private ski guides within resort boundaries as well as the backcountry, offered together with concierge services, experiences for the whole family, photography etc.,” she said. “These on-mountain activities are complemented by luxury offerings such as spa facilities, fully equipped gyms, yoga classes and pampering packages.”
Still, Salman is certain that the weak yen alone is not the sole factor driving tourism gains.
“Japan continues to demonstrate strong underlying growth as a destination,” he said, adding that the country is still benefiting from “the pent-up demand for international travel following the pandemic”.
