Japan is about to welcome back foreign travelers, but domestic tourism remains its priority

Japan is about to welcome back foreign travelers, but domestic tourism remains its priority


After more than two years of closed border policies, Japan is set to welcome back international travelers this week.

Come June 10, foreign tourists traveling via packaged tours can enter Japan.

However, the government’s priority still lies in boosting domestic tourism numbers, said Tadashi Shimura, president of Japan Association of Travel Agents.

Even before the pandemic, domestic tourism contributed far more to Japan’s overall gross domestic product than foreign tourism, according to JATA.

Tourism numbers

Overall tourism contributed 28 trillion yen ($211 billion) to Japan’s economy in 2019, with nearly 80% — or 22 trillion yen — coming from domestic tourists, according to a report by the Japan Tourism Agency.

Despite a rise in Covid cases in 2021, tourism spending from those living in Japan still managed to bring in 9.2 trillion yen that year, JTA said.

Nevertheless, boosting international arrivals to Japan is still vital, especially for the heavily hit hospitality, transportation and travel sectors, said Shimura.

Japan welcomed about 32 million foreign visitors in 2019 and had been on track to achieve its goal of 40 million in 2022, said Ejaz Ahmed, a research analyst at the Economist Intelligence Unit, during a webinar on June 1.

However, the pandemic caused arrival numbers to plummet rapidly, and there were only 250,000 foreign visitors in 2021, government data previously showed.

The loss of international travelers cost Japan “about 10 trillion yen over the past two years,” said Shimura, as spending from international students and long-term foreign residents brought in an average of 4.3 million yen per person per year, he said, citing a report by Nomura Research Institute.

Travel agencies in Japan are gearing up for the return of tourists with packaged tours to famous destinations across the country.

All Japan Tours has six tour packages, including the “Golden Route Japan Tour” which takes participants on an eight-day tour around Tokyo, Osaka and Kyoto for $2,698.

What are the rules? 

The daily cap on the number of visitor arrivals — which includes Japanese nationals and returning foreign residents — doubled from 10,000 to 20,000 on June 1, according to the Japan National Tourism Organization.

Local reports indicate the government may increase the limit to 30,000 people in July.

Still, Shimura said, those limits are too low, as the country used to welcome “140,000 [visitors] per day.”

Countries are classified into three categories — blue, red and yellow — and travelers may be subjected to additional restrictions depending on where they are coming from, according to the Ministry of Foreign Affairs of Japan. 

Travelers from 98 countries and regions — including the United States, United Kingdom, Singapore and China — fall under the “blue” category and are not required to test or quarantine on arrival or be vaccinated to enter.

Travelers from any of the 99 countries in the “yellow” category are also exempted from testing and quarantining upon arrival if they have had three doses of an accepted Covid-19 vaccination The category includes countries such as India, Vietnam and Sri Lanka.

Those coming from “red” countries, such as Fiji, Pakistan and Sierra Leone, must test on arrival and quarantine for a period of three to seven days.



Source

American Airlines is arriving late to the luxury travel boom. Can it catch up?
Business

American Airlines is arriving late to the luxury travel boom. Can it catch up?

An American Airlines Airbus A321 taxis at San Diego International Airport as a United Airlines airplane departs on August 24, 2024 in San Diego, California. Kevin Carter | Getty Images News | Getty Images FORT WORTH, Texas — American Airlines started pouring customers Champagne Bollinger in its top-tier lounges and cabins this fall. But at […]

Read More
One in three Manhattan condo owners lost money when they sold in the last year
Business

One in three Manhattan condo owners lost money when they sold in the last year

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. More than a third of the condo apartments sold in Manhattan over roughly the past year sold at a loss, although the top end of […]

Read More
With two months to Christmas, here’s what retail leaders expect for holiday shopping
Business

With two months to Christmas, here’s what retail leaders expect for holiday shopping

There’s just two months until Christmas Eve, and retailers are meeting a more cautious shopper with earlier offerings. Most retailers won’t report third-quarter results or updated holiday expectations until just before Thanksgiving, largely considered the sector’s most important week of the year. By then, many shoppers will have already started checking off holiday shopping lists. […]

Read More