Yen depreciation boosts tourism, breaking several tourism

In May,Foreign exchange dealers with the lowest spreads Japan welcomed over three million tourists for the third consecutive month, with official data showing that inbound tourism maintained a record-breaking pace due to the depreciation of the yen.

According to data from the Japan National Tourism Organization (JNTO), the number of business and leisure visitors last month was 3.04 million, consistent with the number in April and slightly lower than the all-time monthly record set in March.

The number of visitors last month was up 60% from the same period last year and 9.6% higher than May 2019. In 2019, before the global border closures due to the COVID-19 pandemic, Japan welcomed a record 31.9 million tourists.

The yen's exchange rate against the U.S. dollar has hit a 34-year low, fueling a tourism boom in Japan. According to JNTO, tourist spending in Japan reached a record 1.75 trillion yen (approximately $11.1 billion) in the first quarter of 2024, which is good news for the economy.

However, the influx of tourists has also raised concerns about over-tourism. According to the Asahi Shimbun, on Monday, the mayor of Himeji City in western Japan proposed charging foreigners three times the standard entry fee, or 3,000 yen, to access the city's famous samurai-era castle.

To explain the new Mount Fuji climbing fee, Yamanashi Prefecture Governor Kotaro Nagasaki told reporters this week that Japan should focus on attracting "high-spending tourists" rather than large numbers of ordinary visitors.

Data shows that the number of Chinese tourists, once Japan's largest visitor group, remains about 30% below pre-pandemic levels. However, tourists from other markets have made up for this gap, with Indian tourist numbers hitting a monthly record high in May.

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