Experiential Tourism Key to Driving Inbound Spending in Japan
Tokyo, July 17 (Jiji Press)--Amid signs of changes in spending behavior among foreign visitors, enhancing experience-based tourism and offering value-added accommodation services are key to further stimulating inbound consumption in Japan.
The estimated number of foreign visitors to Japan hit a record high of 21,518,100 in January-June, topping the 20-million mark at the fastest pace ever. The results highlighted the popularity of Japan as a travel destination.
However, the consumption patterns of these visitors have been shifting as their enthusiasm for purchasing luxury items appears to be waning.
According to a preliminary report from the Japan Tourism Agency, consumption by foreign visitors to Japan in April-June rose 18.0 pct from a year earlier to 2,525 billion yen, but the proportion of their shopping expenses decreased.
Tax-free sales to inbound travelers at department stores in May dropped some 40 pct from a year before, posting a decline for the third straight month, reflecting sluggish sales of items including luxury-brand bags.
On the other hand, the hotel industry continues to enjoy strong demand from foreign visitors.
According to hotel operator Seibu Prince Hotels Worldwide Inc., the proportion of foreign visitors to its overall guests grew some 1.1 times from a year earlier in April-May.
"The number of people seeking experiences (unique to Japan) is increasing," an official of Seibu Prince Hotels said.
The Hotel Seiryu Kyoto Kiyomizu in the western city of Kyoto, which is operated by Seibu Prince Hotels, holds an event featuring a traditional dance performance by "maiko" young female entertainers.
"The average daily rate for hotel rooms in metropolitan areas is expected to stay relatively high from early autumn," Miwako Date, president of real estate developer Mori Trust Co., said, adding that accommodation demand will grow further.
A survey conducted by the Japan National Tourism Organization showed that the share of foreign visitors spending 1 million yen or more per stay in Japan stood at 19.1 pct of the total, up about 5.1 percentage points from the 2019 level before the COVID-19 pandemic.
Such foreign tourists tend to seek high value-added experiences, according to the Japan Association of Travel Agents.
"Rather than simply buying things, (foreign visitors) are shifting their behavior to having experiences that are unique to Japan and buying additional related items if they are impressed," Yukari Matsumoto of Jalan Research Center said.
The Japan Tourism Agency is promoting adventure tourism, which allows people to experience nature and culture.
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