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Earning 6.8 Trillion Yen in 3 Months, the Consumption of Tourists in Japan Has Increased by 11 Times

By: MerxWire

Japan’s tourism revenue and visitor numbers hit new post-pandemic highs. The Japan Tourism Agency announced that from April to June, domestic travel consumption in Japan reached 5.5963 billion yen, an increase of 27.7% compared to last year. Spending by foreign tourists reached 1,205.2 billion yen, 11.5 times that of the previous year’s period.

The number of tourists traveling to Japan has increased significantly, resulting in a large increase in the number of people visiting many shopping streets. (Photo via Merxwire)

TOKYO, JAPAN (Merxwire) – According to the “Travel and Sightseeing Consumption Trend Survey” released by the Japan Tourism Agency, during the period from April to June 2023, the amount of domestic travel consumption in Japan will reach 5,596.3 billion yen, an increase of 27.7% over the same period last year. The total number of domestic tourists in Japan was 133.64 million, an increase of 15% compared to the previous year. Among them, 72.82 million were overnight visitors. Although the number of tourists in this period has not yet broken the pre-pandemic record, both travel consumption and the number of tourists are at new highs after the end of the pandemic restrictions, showing that domestic tourism consumption in Japan has gradually returned to pre-pandemic standards.

In addition to the significant recovery in Japan’s domestic travel consumption power, the number and consumption power of foreigners traveling to Japan has also increased significantly. The “Survey on Consumption Trends of Foreigners Visiting Japan” stated that between April and June 2023, the amount of consumption spent by foreigners traveling to Japan reached 1,205.2 billion yen, 11.5 times that of the same period last year, indicating that the international tourism industry has gradually recovered. The amount spent on travel is the largest in Taiwan at 173.9 billion yen (14.4%), followed by the United States at 173.3 billion yen (14.4%) and China at 151.5 billion yen (12.6%). Although foreigners’ consumption in Japan is only about 1/5 of Japan’s domestic tourism, it still brings great help to Japan’s tourism.

What is interesting is that, compared with the same period in 2019, among the number of foreign tourists traveling to Japan, accommodation expenditure has become the most crucial consumption expenditure, and the proportion has risen to 35%. Shopping expenditure dropped from first to second place, and the ratio dropped to 25.2%, which shows that foreign tourists pay more attention to accommodation, and will drive the recovery of Japan’s hotel industry.

According to the Japan Sudo Travel Statistics Survey, the total number of overnight visitors in May was 49.26 million. Among them, Tokyo (7,874,610 people) had the highest number of overnight stays, Osaka Prefecture (4,119,880 people) was the second, and Hokkaido (2,949,450 people) was the third. Tokyo is the city where the most tourists stay and stay, with a growth of 20% compared to the same period in 2019. Reservations at hotels in all regions rose sharply, showing growth in both domestic and foreign tourists.

The accommodation consumption of foreigners visiting Japan has increased significantly, which will drive the recovery of the hotel industry. (Chart via Merxwire)

Due to the different cultures, geographical locations, and other factors of various regions in Japan, each area has its popular accommodation types. Japan Hotels can be divided into different forms: Japanese City Hotels, Business Hotels, Japanese Resort Hotels, Inns, and Simple Accommodations. Travelers can choose different types of accommodations according to different needs and budgets. Most are Japanese-owned, but foreign investors also operate many world-famous hotels.

Business hotels are the first choice for most tourists when visiting Tokyo. Although the rooms in business hotels are smaller, the accommodation costs are cheaper and are suitable for business travelers and general travelers. Simple accommodation is the most popular accommodation method in Osaka Prefecture. Simple accommodation only provides simple equipment and services, mainly low-cost and convenient accommodation space.

Japanese City Hotel is the most famous hotel type in Shimane Prefecture. City hotels are generally located in the city center and vary in size. The hotel has relatively complete equipment, luxurious decoration, large room size, and ample guest beds. Shimane Prefecture is known as the “Land of Japanese Mythology” and is one of the birthplaces of ancient Japanese culture. The most famous shrine in the prefecture is “Izumo Taisha Shrine,” one of Japan’s loftiest shrines and attracts an endless stream of people visiting it. After completing their pilgrimage activities, tourists can stay in a Japanese City Hotel and enjoy a spacious and luxurious accommodation experience.

Japanese Resort Hotels have the most occupancy in Chiba Prefecture. Chiba Prefecture has an excellent geographical location. In addition to Narita Airport being within the prefecture, it is also close to Tokyo, making transportation more convenient for travelers. Located between Tokyo Bay and the Pacific Ocean, it has a pleasant climate all year round, making it one of the best vacation spots. Therefore, Chiba Prefecture has many resort hotels, allowing travelers to enjoy a luxurious and comfortable hotel life and leisurely vacation in nature.

With the end of pandemic restrictions, the number of tourist arrivals has increased in various regions of Japan, making tourism again one of Japan’s critical economic development projects. Although the recovery speed of each area is different, they have developed other characteristics according to the history and culture of each site, providing different accommodation experiences and enjoyment for Japanese domestic and international tourists. These characteristics are one of the reasons why many tourists visit various places in Japan repeatedly and continue to bring more tourists to Japan.

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