Japan’s weak yen boosts tourism, raises ‘overtourism’ concerns

Japan had more than 3 million visitors for a third straight month in May, official data showed on Wednesday, as the weak yen helped continue a record pace for inbound tourism.

The number of foreign visitors for business and leisure was 3.04 million last month, steady from the level in April, and down slightly from the all-time monthly record in March, data from the Japan National Tourism Organization (JNTO) showed.

Arrivals last month were up 60 per cent from the same period last year and 9.6 per cent higher than in May 2019. Japan had a record 31.9 million visitors in 2019 before the Covid-19 pandemic shut global borders.

The weak yen, languishing at a 34-year low against the dollar, is helping fuel a tourism boom in Japan. That’s good news for the economy, with travellers spending a record 1.75 trillion yen (US$11.1 billion) in the first quarter of 2024, according to the JNTO.

But the influx has raised concerns of “overtourism” at visitor hotspots. On Monday, the mayor of Himeji in western Japan floated the idea of charging foreigners three times the standard 1,000 yen fee to enter the city’s famous samurai-era castle, the Asahi newspaper reported.

In explaining new trail fees to curb overcrowding on Japan’s sacred Mt. Fuji, Yamanashi prefecture governor Kotaro Nagasaki told reporters this week the country should focus on attracting “higher spending visitors” over sheer masses of people.

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Tourists get taste of old Japan at hidden 'snack bars'

Chinese travellers, previously the largest contingent of tourists to Japan, are still about 30 per cent lower than pre-pandemic levels. But travellers from other markets are picking up the slack, such as Indian visitors who reached a monthly record in May, JNTO data showed.

Dalia