Asia Weekly

In Japan, Tourism Also Rises

Week Ended: May 2, 2008

Long considered an expensive destination, Japan has become an increasingly popular—and more affordable—tourist draw in recent years. Last year, the country saw an estimated all-time record high of 8.34 million foreign visitors, according to the Japan National Tourist Organization. That figure is up 14% from the previous year, and marks a fourth consecutive annual rise, with most overseas travelers coming from elsewhere in Asia. The trend is helped partly by rising disposable incomes in Asia as well as increased flights between China and Japan, which contributed to a 17% jump in visitors from China, reaching 980,000 last year. More relaxed government regulations over tourist visas have also helped spur travel for Chinese to Japan.

Compared to a decade ago, hotels and transit stations boast more signs not only in English, but also in Chinese and Korean. Department stores have also learned to accommodate, hiring more foreign-language speakers. To facilitate the growing purchasing power of Chinese travelers, more and more retailers and hospitality operators are accepting a type of debit card known as "Ginren." Chinese are restricted from bringing more than $5,000 in cash with them when they travel abroad. However, the Ginren card, introduced three years ago and issued by nearly 200 Chinese banks, allows Chinese tourists to fund purchases directly from their home bank accounts. The card is now more widely accepted by hotels, restaurants and duty free electronics shops. As a testament to its success, Chinese tourists to Japan were estimated to have spent a total of $35 million via these debit cards last year, roughly quintuple the amount the previous year.

Japan's typical attractions that include Tokyo shopping and nightlife, soothing mountain hot springs and the gilded temples of Kyoto still lure hordes of visitors. But the country's tourism industry is now savvier about also promoting a variety of activities like sushi making, sake tasting, martial arts and taiko drumming or visits to bamboo forests and sumo stables. One new symptom of Japan's rising popularity: Tokyo's famed Tsukiji fish market, a long-time tourist draw for its early morning fish auctions, is now limiting visitors as the crowds have become too disruptive to business.

Sources: Nikkei Inc., Associated Press

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