Published on : Wednesday, August 23, 2017
Japan’s yen is becoming stronger which is adding an uncertainty in the tourism business. The tourism in Japan is consistently in surge, where the average spending is done mostly by the British. Britons are the biggest spenders in per capita.
According to the latest Japan’s tourism survey, which covered the April-June quarter and ranked Chinese visitors in the third position in average spending the money for tourism, preceded monthly data showing Japan’s inbound tourist numbers surging to a record 2.68m for July.
This tourism surge has been consistent in raising the numbers of monthly visitor since 2012, when they averaged 700,000, but has taken on a more critical role contributing about 16 per cent to growth in Japan’s consumer spending since then.
The tourism investors have long identified the company-by-company effects of Japan’s extended tourism barb on hotel, restaurant and retail stocks but it is clearly no longer trivial in macro terms, argues Jesper Koll of Wisdom Tree asset management.
Since the tourism boom in Japan is dormant, the statistical relevance shows the data is reduced, but the analysis shows that if the currency of Japan climbs ¥10 against the dollar, the money spent per tourists falls by 8 percent.
Previous year, Japan welcomed 24millions tourists, now the tourism department of Japan is targeting 40millions by 2020.
This highlight is especially the positive for Japan’s regional economies. The tourism areas where local politicians with powerful influence over policy may now break with tradition and become vocal advocates for a weaker yen.