Link: 'Instagram culture' and weak yen help push tourism to Japan's second-largest export | Fortune Asia

Over 14.6 million international visitors explored Japan from January to May, potentially setting the stage for a record-breaking year. In March alone, almost 3.1 million tourists visited, marking the highest monthly figure since 1964.

Total tourism revenue for the first quarter reached 1.75 trillion yen ($10.8 billion), elevating tourism to Japan's second-largest export. This sector surpassed semiconductors, positioning just below automobile exports.

After relaxing COVID-19 restrictions in late 2022 and lifting them entirely by April 2023, Japan witnessed a swift recovery in inbound travel. Norihiro Yamaguchi of Oxford Economics highlighted the rebound, noting the significant spending surge since late 2019.

The depreciation of the yen enhances tourists' purchasing power, making expenses like accommodations and dining more affordable. Jeremy Bek of Rakuten Travel attributes the travel surge not only to the favorable exchange rate but also to the allure of "Instagrammable" experiences over traditional tourism staples like shopping and dining.

Rising tourism has led some localities to consider dual pricing to manage the increased demand on resources, with cities like Kyoto considering higher charges for tourists on public transit. Despite challenges in some popular cities, lesser-known areas have not experienced overtourism, according to Bek.

Still, the industry remains cautious, with strategies to balance international and domestic clients to avoid potential future downturns, ensuring the sustainability of Japan’s tourism sector amidst fluctuating global conditions. #

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