Posts tagged as “#cause&effect”

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.

By Towa Oguni

Inbound tourism has excellent potential to be a major stimulus for the Japanese economy. After the Covid-19 begin to be calm down, many tourists all over the would start to go abroad and visit tourist spots again. They spent huge of money on sightseeing so economic is revitalized by them. Naoki Arai (2019) reported that the number of tourists coming Japan is 31 million in 2018, consuming 4,500 billion in 2018. Both scores were increased significantly than before. There are three positive effects inbound tourism on.
Some places are popular among international travelers. For example, Japanese discount store called Don Quixote’s business has been growing with inbound tourism. This store sells a lot of interesting items for customers, and it is very famous for foreign tourists. The Dotonbori shop in Osaka is the most attractive. Ichiro Matsumoto (2016) said that Dotonbori store in Osaka occupy 39.6% of the ratio of tax-free sales. In other words, many tourists from abroad shop at this store, contributing greatly to sales.  
  In addition to the effects on discount store, Japan’s luxury hotels start building new hotels. There are just 34 five-star hotels in Japan, whereas America has 801 five-star hotels. Hoshino Resort a well-known company that operates hotels in Japan has planned to open new four facilities by 2024. In addition, Imperial Hotel has planning built a new hotel in Kyoto by 2026. 
The most positive effect of inbound spill over construction industry, accordingly, increasing employment opportunities. The Nikkei (2022) reported Shiseido, Japanese cosmetic farm, has completed new plan in Kurume, Fukuoka to ship their cosmetic products for Asian such as China. This factory will have the potential to produce 140 million units per year from 2026. The company have to hire more workers. Thus, more jobs will be created as a result of inbound tourism.
In conclusion, these are the three great effects of Japanese inbound tourism. The corporation such as Don Quixote is benefiting from the inbound. Moreover, the company can receive positive effects such as increased employment opportunities by establishing a system to accommodate inbound tourism. Japan’s economy will grow more than ever thanks to inbound. 

References

Arai, (2019), Significance effects and issue of inbound tourism. Journal of Regional Promotion ,30,1-30.
Matsumoto, (2016). Increase of foreign visitors and upheaval of inbound tourism. The Economic Review of Japan University of Economics,46, 237-247.
Shiseido hukuokade shinkozyokadou zyuyoukaihuku mikomi seisankakuzyu［Shiseido to start operation of new plant in Fukuoka prefecture, expanding production in expectation of recovery in demand.］(2022,May 26). Nihon Keizai Shinbun. 

By Yui Naoi

These days, when I go to Don Quixote I’m surrounded by many tourists from China, Korea and other countries. And foreign languages are spoken around in the shop. Also, when shopping at such places, tourists fill their baskets with goods and buy many of the same items. There are a lot of foreigners seen in Don Quixote, department store and Matsumoto Kiyoshi etc.  As this trend shows there are three positive effects of inbound tourism on Japanese retail stores.
One of the most successful retail stores is Don Quixote. Don Quixote is a variety shop that sells foods to electronic appliances. Recently, Don Quixote’s sales figures have been going up steadily every year. According to their website, Don Quixote’s operating income increased 18.7% over the previous year. They caught the wave of inbound tourism by opening a duty-free shop for international customers. They accommodated the needs of foreign customers by offering foreign language services. In addition, their shop is open for 24 hours 7 days. Thanks to that Don Quixote is ranked fourth in the Japanese retail industry in term of sales. So, you can see how Japanese retail stores are growing due to international tourists. 
Another successful retail shop is Matsumoto Kiyoshi, a drug store. Matsumoto Kiyoshi is a drugstore that is expanding nationwide, mainly in eastern Japan, and is used daily by many people as a tenant in stations and department stores these days. It is  approximately 40% of total sales are cosmetics, which generate almost as much or more profit than drugs. The fact that cosmetics sell better than medicines, despite being in pharmacies, was surprising. The demand for Japanese cosmetics from these tourists has led Japanese cosmetics manufacturers to expand their factories and increase production efficiency. It is largely derived from there and contributes greatly to the Japanese economy, such as the construction industry that makes money to build factories.
Lastly, department stores also succeed in getting inbound customer.  Also, this year, department stores are experiencing strong inbound consumption because of yen is weaking. And sales have increased greatly compared to the previous year. Due to the economic downturn, Japanese incomes did not rise and luxury items did not sell well. But sales of luxury items are increasing thanks to international tourists, especially Chinese tourists. In addition, department stores, like drugstores, have been increasing their sales of cosmetics. Expensive cosmetics specific to department stores, it called “Depakosu” are popular among Asian tourists. Corona virus has also settled down and started to take off their masks, and some say that Japanese cosmetic manufacturers are still of good quality and safe.
These retail stores have increased their sales in recent years thanks to foreign tourists. And continue to grow and wealth the Japanese economy. But  the bombing shopping by  foreign tourists may make it difficult for Japanese to obtain goods. However, it is true that the increase in tourists has improved Japan’s economy and stimulated a variety of jobs. We will continue to grow our various Japanese businesses without relying too much on tourists.  I hope that more and more companies will expand their business overseas, and that their products will reach people who have not yet visited Japan. 

References
“don・kihoteno” pashipashiHD, 23nenn 6gakki junrieki saikouni [“Don Quixote” Pashipashi-HD posts highest net income for the fiscal 2023 ended June] (2023, May 10). Nihon Keizai Shinbun.
Shiseidou, Osakano 2 koujouwo 26 nenni tougou seisan kourituka [ Shiseido to integrate two plants in Osaka in 26 years to improve production efficiency] (2023, October 31). Nihon Keizai Shinbun.
9 gatuno hyakkaten uriagedaka, 9.2%zou menzeiwa kako 3banmeno kousuijun [ Department store sales up 9.2% in September, duty free at third highest level on record] (2023, October 24). Nihon Keizai Shinbun.
  5 gatuno hyakkaten uriagedaka , 6.3%zou iryouhin ya keshouhinga kouchou [ Department store sales up 6.3% in May, strong sales of clothing and cosmetics] (2023, June 23). Nihon Keizai Shinbun.