👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Japan attracts record 3.14 million June visitors as weak yen draws travellers

Published 07/18/2024, 10:40 PM
Updated 07/19/2024, 02:50 AM
© Reuters. FILE PHOTO: A crowd of tourists are seen at Kiyomizu-dera temple in Kyoto, western Japan March 30, 2023.  REUTERS/Issei Kato/File Photo
JP225
-

By Rocky Swift

TOKYO (Reuters) -Japan set a record high for monthly visitors in June, official data showed on Friday, as its weak yen fuelled a tourism boom that is becoming a key driver for the economy.

The number of foreign visitors for business and leisure was 3.14 million last month, exceeding the previous monthly record of 3.08 million set in March and up from 3.04 million in May, data from the Japan National Tourism Organization (JNTO) showed.

The 17.78 million arrivals through June were also a record for a half-year period and on pace to smash through an annual record high of 31.9 million in 2019, before the COVID-19 pandemic shut global borders.

Spending by visitors is estimated to reach 8 trillion yen ($50 billion) this year, Prime Minister Fumio Kishida said on Friday, adding that the government needed to guard against so-called "overtourism". The tourism industry is expected to become Japan's second-biggest export sector for 2024, behind automobiles and ahead of electronic components.

The yen's slide to a 38-year low against the dollar has made Japan an irresistible bargain for overseas travellers. Out of 23 markets tracked by the JNTO, travellers from 18 regions set new records for June arrivals. Visitors from Taiwan and the United States set their highest totals for any month.

"The weak yen has undoubtedly boosted Japan's appeal, encouraging spontaneous travel plans," said Naomi Mano, president of high-end travel agency Luxurique. "We are also witnessing a more diverse mix of countries visiting Japan, a notable shift from 2019 when approximately 30% of travellers were Chinese."

Arrivals from mainland China in June were down 25% from the same month in 2019, the JNTO data showed.

While traveller spending has been a boon for the economy, the masses of people at visitor hot spots has rankled some locals and prompted concerns among policymakers.

Crowded trails and increased littering on Japan's sacred Mt. Fuji this month prompted officials to impose admission fees and hiker limits for the first time.

The mayor of Himeji in western Japan also last month suggested charging foreigners about six times the rate residents pay to enter the city's famous samurai-era castle.

Even so, the government is counting on tourism becoming a larger part of the nation's economy. Prime Minister Kishida reiterated a goal of nearly doubling annual visitors to 60 million and their spending to 15 trillion yen by 2030.

He told a panel of ministers in Tokyo that the government needs to build up regional airports and other infrastructure to handle the load.

© Reuters. FILE PHOTO: A crowd of tourists are seen at Kiyomizu-dera temple in Kyoto, western Japan March 30, 2023.  REUTERS/Issei Kato/File Photo

"It is important to promote tourism to regional areas and take measures to prevent overtourism," he also said.

($1 = 157.4200 yen)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.