Japanese consumers are expected to travel overseas less this summer, amid rising costs due to the weak yen and geopolitical uncertainty.
Tokyo-based research firm Intage estimates outbound travel from mid-July to the end of September will fall 8.8 per cent year-on-year, based on its survey of 15- to 79-year-olds about their travel plans over the period.
The Strait of Hormuz crisis was a consideration for 26 per cent of respondents, whose actions ranged from adapting destination planning and budgeting to avoiding or cancelling overseas travel and switching from foreign to domestic trips.
The study found overseas travel budgets have risen by 129,798 yen (US$794) to 531,505 yen, largely due to higher prices.
Another study by JTB, which looked at travel plans from July 15 to August 31, also shows outbound travel will drop 8.8 per cent year-on-year, while average planned travel expenditure will rise 6.3 per cent year-on-year to 323,000 yen.
JTB’s report noted “a growing trend towards choosing overseas destinations where local prices are affordable, the impact of the weak yen is minimal and airfares are relatively low”, noting that the most popular destinations for Japanese travellers this summer are South Korea (26.2 per cent), Taiwan (16.2 per cent), the US and Canada (10.4 per cent), China (10.1 per cent), and Hong Kong and Macao (9.4 per cent).
Still, “international travel continues to be a priority” for Japanese travellers, even as they “remain mindful of the weaker yen and higher overseas costs”, Jun Otani, managing director Japan of Travelex, told TTG Asia.
Outbound travel demand from Japan will remain resilient over the next few months, he opined, noting this year’s Silver Week holiday in September is particularly favourable, with travellers able to create a nine-day holiday by taking just two days of annual leave.
“We expect continued demand for both regional destinations across Asia and longer-haul travel to Europe and North America, as well as healthy demand for foreign currency exchange, as travellers increasingly seek to secure exchange rates before departure as part of their travel planning,” he said.
