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Positive Effect of Inbound Tourism in Japan

By Kyoko Abe

The COVID-19 pandemic is becoming finished, and the number of international tourists in Japan is expected to increase by 21 million people in 2023. There are many reasons why foreign tourists choose Japan as their trip place, which are weaker yen, delicious foods, and a clean and safe environment. More and more foreigners visit Japan, and the government of Japan expects to create economic effects from the Inbound industry. There are three inbound benefits, which are economic growth, the increase in demand for Japanese products, and the improvement of Japan’s image. 
        Firstly, inbound tourism raises Japan’s economy. The consumption amount of foreigners visiting Japan has greatly increased. According to Japan’s National Tourism Bureau, 3.47 trillion yen was consumed in 2015, which means that the consumption amount occupies 0.6 percent of GDP and 1 percent of individual consumption, so the contribution should be appropriated in the trend of decreasing the consumers population. Also, the Inbound industry is the second highest industry with export value after the automobile, so the Inbound industry is one of the main export industries. Moreover, the inbound industry promotes other industries like hotels, transportation, production, and restaurants. For example, the construction of hotels is increased, because more foreigners are visiting Japan, which leads to creating profit for the construction industry, restaurants around hotels, and transportation will be more useful for visitors. The effective benefits of inbound tourism raising profit and promoting other industries lead to improvement Japan’s economy.
        Secondly, the demand for Japanese products is increased in foreign countries by inbound tourism. Foreign tourists enjoy purchasing Japanese products like electronics, snacks, and clothes. They tend to repurchase these products in their home country. According to Kanko Hakuho (2018), the consumption amount that tourists repurchase Japanese products after they come back is 630 billion yen. Also, Mizuho Information Research Institute (2016) revealed that more than 60 percent of Chinese, Thai, and Taiwanese who tripped to Japan bought the same Japanese products again in their country. The situation they buy the products again in their country leads to an increase in the amounts of Japan’s exportation. Also, the popularity of Japanese products has spread, and more Japanese restaurants are offered in foreign countries.
        Finally, the Japanese image of foreigners become better, and Japanese residents are proud of their region. Inbound tourism has effects not only Japan’s economy and products but also a positive image of Japan. According to Genron NPO (2018), the research on the Chinese impression of Japan showed that overall, 34.9% is a positive impression against 63.3% is a negative one. 34.9% is positive impression by Chinese who have never visited Japan. However, Chinese who have visited Japan have more positive impressions about 74.3%, which means Chinese impressions had been changed from negative to positive by visiting Japan. Also, the tendency is also same among Korean. Positive impression of Japan among Korean who have visited Japan is three times higher than Korean who have never visited. Inbound has the power to change public opinion towards Japan. Also, Taniguchi (2012) argued that the more foreign visitors interact with residents, the more they know the attractions of the region they visit, and the satisfaction and the place attachment become better. Also, residents rearise the charm of their local nature and resources, so they have a positive attitude to regional activation and spread the local charms more to foreign visitors. Throughout inbound tourism, both foreigners and Japanese residents realize the local charm and increase the place attachment.
        In this way, inbound tourism has three effects in Japan. Throughout inbound tourism, Japan’s economy is raised which increases the consumption of foreigners leading to a high GDP of Japan and promoting other industries. Moreover, the demand for Japanese products has increased in foreign countries. It expands Japan’s exportation and spreads the popularity of Japanese products. Also, public opinion towards Japan become better and the place attachment among both foreign tourists and residents is increased by inbound tourism. Inbound tourism has these effective aspects, so it is expected to support the Japanese economy and society in the future.

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