Japan welcomed 3,081,600 tourists in March, a record high that the Japan Tourism Agency attributes to the weak yen and high demand for cherry blossom viewing. Consumption is also up, with the 8.56 million international arrivals over January to March spending 1.75 trillion yen (US$11.1 billion), an increase of 53 per cent over the same period in 2019.
The yen’s drop to a 34-year low against the dollar is spurring a surge in inbound tourism to Japan as the country becomes a cheaper destination for international travellers. Visitors are using the opportunity to splurge on higher-end accommodation, experiences, food and drink, and tours, say industry players.
Makarim Salman, founder and lead guide of Maction Planet, told TTG Asia that the weak yen has had “a positive impact” on his business.
“We’ve seen an increase in bookings from customers taking advantage of the favourable exchange rate,” he said, adding that customers are “spending more than usual” on shopping for luxury goods in Tokyo’s high-end Ginza and Omotesando districts, and experiences.
“Many of our clients are seeking out opportunities to delve deeper into Japanese culture at the higher end, such as private tea ceremonies, exclusive whiskey tastings, and bespoke sake tastings. We have also seen a growing interest in luxury experiences, such as staying at high-end ryokans and dining at Michelin-starred restaurants,” he continued.
Lindsay Colbert, managing director of Japan Ski Experience, is also seeing visitors spending more.
“We have noticed higher demand for private ski guides within resort boundaries as well as the backcountry, offered together with concierge services, experiences for the whole family, photography etc.,” she said. “These on-mountain activities are complemented by luxury offerings such as spa facilities, fully equipped gyms, yoga classes and pampering packages.”
Still, Salman is certain that the weak yen alone is not the sole factor driving tourism gains.
“Japan continues to demonstrate strong underlying growth as a destination,” he said, adding that the country is still benefiting from “the pent-up demand for international travel following the pandemic”.
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She has over 19 years of experience as a director of sales and marketing, and was part of the team to relaunch and rebrand the renovated Mandarin Oriental Singapore.
The Japan Tourism Agency (JTA) is stepping up efforts to expand gastronomy tourism in a bid to combat overtourism, cater to the high-end market and boost inbound tourism consumption in rural areas.
JTA will provide financial subsidies in fiscal 2024 (April 2024 to March 2025) for the development and promotion of programmes focusing on regional culinary cultures.
The Japanese government considers food and drink an industry with high potential for growth given that inbound visitors spent 1.2 trillion yen (US$7.8 billion), on food and drink in 2023, equating to almost one quarter of their total consumption, according to JTA.
Support includes up to 50 million yen per successful applicant to cover the establishment of bases for collecting ingredients, such as wild plants, and for carrying out local cultural experiences. Advertising, meanwhile, can be carried out overseas, such as on travel websites.
As part of the plan, luxury packages that combine culinary and cultural experiences will also be developed to expand options for “high-value travellers,” categorised by the Japan National Tourism Organization (JNTO) as those who spend one million yen or more per visit to Japan.
Among the regions that could benefit from the subsidies is Nara Prefecture, which trialled six gastronomy tours from October 2023 to January 2024 with support from JTA as part of a project designed to attract 51 million tourists annually by 2025. The tours introduce Nara as the heartland of sake and matcha, as well as the prefecture that produces the most persimmons.
“The bounty of the nation’s mountains, valleys, rivers and seas differs from region to region, giving tourists myriad opportunities to get to the heart of Japan through their stomachs,” said a JNTO representative. “That’s the essence of gastronomy tourism, a form of travel focused on food nurtured by local ingredients, customs and traditions.”