How important is tourism to Japan?

I was wondering how badly affected the Japanese tourist industry will be by the state of the yen compared to the dollar, euro and pound. When I went to Japan 12 months ago I got 236yen to the pound and today it�fs 140yen to the pound. So it�fs bordering on being prohibitively expensive to visit Japan from the UK.

But I assume that US and European tourists are not very important particularly in economic terms and I also assume that most of Japan�fs visitors are from neighbouring Asian countries like China and South Korea. Is this aspect of tourism being similarly affected by a terrible exchange rate for tourists?

So basically, can anyone tell me if foreign tourism is of only very small concern to the Japanese?

"Inbound tourism" (non-Japanese tourists coming to Japan) is currently a much smaller industry in Japan compared to domestic Japanese tourism (Japanese tourists traveling inside Japan) and "outbound tourism" (Japanese tourists going abroad). But it is a rapidly growing industry and quite heavily promoted by the government. Therefore, quite a fuss is currently made about "inbound tourism". But in absolute terms, it is not very important to Japan's economy.

The strong yen has stopped the increase of foreign tourists, which had been going on for years. Depending on the currency, travel costs have increased by between 5 to 40 percent in recent months due to the strong yen.

Almost all countries are affected. More than 75 percent of foreign tourists are from South Korea, Taiwan and China. South Korea, in particular, has been hit hard, as the Won has lost about 30% of its value against the yen. I think that Taiwan and China were not hit as badly, but their currencies also lost against the yen.

In Western countries, Australia has been hit particularly bad with the dollar dropping about 40%, resulting in the cancellation of many travel plans. In comparison to other currencies, the US dollar has not lost much of its value.

I personally am convinced that it is temporary phenomena, though.

Just to add to Uji's comment, although inbound tourism, in absolute terms, is not very important to Japan's economy at the moment, the reason it is promoted by the government is because inbound tourism seems to be one of the fewer yet best ways to encourage the economic growth in Japan in the near future.

Japan is suffering a rapid decrease of population, meaning that quite soon the fewer younger generation might need to pay a great amount of tax in order to support the huge retiring population. Also, Japan owe a lot to imported products and the country's rate of self-sufficiency is not at all high. Therefore, trying to depend on the money that foreign tourists bring in does make sense.

Plus, at the moment, inbound tourism seems to be working as a good means of mutual understanding between different cultures. For example, the Chinese and Koreans often have a bad impression against the Japanese, and vice versa (Japanese having bad impression against Chinese and Koreans), but those who have actually been to Japan go back having a better impression, and vice versa.

But Japan does need to do a lot of catching up to entertain foreign tourists. For example, although trains stations have signs in different languages and there are plenty of people you can ask for directions, some of the best touristical spots in the cities don't have brochures in foreign languages.

Your original question was on the yen rate.

I did see a couple of news footage on TV about people who are suffering as they rely on Australian skiers coming to Japan. Australian skiers were becoming a huge market in Japan recently, and the footages featured people like an Australian man who had started a tourism business in Japan as well as a lodge owner who have had many Australian guests in the past. They said that they are suffering a rapid decrease on their business. I suppose they need to come up with alternatives.

It is gratifying to know the ghastly fate of the Aussie dollar situation is recognised and understood in Japan: I was unaware of the disproportion of foreign to local tourism, but when thinking about it one of the reasons we loved our previous trip was the lack of "tourists" so to speak: we felt we were experiencing Japan as the Japanese do, although there were a few more international tourists in Nara. The land costs of our return trip in April next year has gone up by 50% in price: pretty significant: we were lucky to secure cheap flights: I am VERY pleased to read Uji's comment about "temporary phenomenon": I REALLY hope this is so: the $AUS is a disaster for wherever we may want to travel: when we travelled to Japan March this year AUS$1 was 94Yen; when I went to the USA in August this year AUS$1 was 96 US cents: now it is 58Y and 61 US cents: tough, very tough. Our payment for the land costs are not due or able to be paid until early March: lets hope there is an increase by then!!! I do know of lots of Aussie skiers who are still coming to Japan though, as its just as costly to go to Whistler, but we can get cheaper airfares to Japan........

I know how you feel fmj, we went to Japan in Feb and AUD$1 bought about 95 yen now it's aroung 60! We're planning our honeymoon to Japan for November next year and it's costing us thousands more than our last trip. We have cut some places out, like Okinawa but we are determined to go no matter the cost because we just love it. I'm sure it will affect aussies wanting to travel there but it will affect any aussies wanting to go anywhere overseas at the moment.
Like fmj we didn't see that many westerners over there when we were there so I don't think it will make that much difference to Japan's tourism on a whole.
Lets hope Uji is right and this won't be a lasting phenomenon!

So, it�fs pretty much like I thought; not a major blow to the Japanese tourism industry - but a blow to westerners wanting to visit. As others have mentioned, while in Japan you don�ft see a lot of western tourists around, especially outside the shrines and temples of Kyoto and Nara. And again like others have said, this is in some ways part of the appeal. But if it wasn�ft for being able to find some bargain flights I�fm not so sure I�fd be going to Japan again next year. But I�fm having to save a lot of extra money to have as much yen to spend as last time.

I�fm sorry for not mentioning Australia in my original post as I am aware that the AUD has devalued terribly.

Uco�fs comment about �gJapan needing to do some catching up to entertain foriegn tourists�h is something I�fve heard tourists complain about after visiting Japan. Particularly the lack of westerner friendly signing on the transport system and at many tourist sights. But I disagree in respect of the transport system – it�fs very helpful to English speakers. I can see that many tourist sights can be lacking in English language signs, pamphlets or guides but as I see it, it kind of lends itself to that real sense of being in a foreign land.

you forgot to mention Canada too, we're North of the US lol

of course Canada and New Zealand too.

Actually, the Japanese tourism industry already suffered a major blow in the early 90s when the so-called "bubble economy" collapsed and then later on when 911 occured or pretty much in the recent years as the internet is becoming common.

But you can't really put the whole industry in one bowl. It all depends on whether you're dealing with jets, or whether you're dealing with food, or whether you're dealing margins... the elements are numerous.

In the 90s, several huge companies did run out of business. As it is so in all industries, you just have to try and keep up with the changes of the world.

we are determined to go no matter the cost because we just love it
Well done AusEx:That's the true Aussie spirit: and we too are just diving into reserves, and saving madly, cos we are coming back in April no matter what: travel agents here must be really suffering as well: they were trying to help our costs by suggesting we just spend 2 weeks in one city to avoid the need for a JR Pass, and stay in lesser "star" hotels: great advice, but we totally ignored it!!!!!