BOJ optimist of the boost of inbound tourism

Saturday, October 8, 2022

On Thursday, the Bank of Japan painted a carefully positive view on consumption, and teamed up with the government in showing hope that the border re-opening next week will definitely boost inbound tourism and assist the country from making its weak yen powerful.

The central bank, in its quarterly report on regional economies, however, has cautioned that some manufacturers were observing demand overseas weaken, a symbol lingering supply restraint and sluggish global growth were diffusing the outlook for exports.

BOJ Nagoya branch manager Takeshi Nakajima, said that the manufacturers, mostly automakers, are going through the anguish of unsteady procurement of parts, which is causing harm to the output and exports. Many Japanese economies of regional stature are picking up reasonably with couple of firms considering raising wages, the BOJ said in the report, underlining its expectation that household income will increase enough to underpin consumption. Companies have positive expectation that service consumption will get momentum through inbound spending, as Japan eradicates border restrictions, it said.

The BOJ’s remarks on inbound tourism go in the same way with the Prime Minister’s who has advocated boosting inbound tourism recently to perk up the declining condition of yen.

From this Tuesday, Japan has released its border policies including dropping a cap on arrivals on a daily basis, as it tries to alleviate the mounting strains from a fragile yen like the higher price firms must pay to import raw material and fuel.

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