Japan's Tourism Industry Faces Direct Hit from Novel Coronavirus Ahead of the Olympics

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Japan's tourism industry, facing the Tokyo Olympics in July amid the novel coronavirus infection (Wuhan pneumonia), has been hit hard. It is reported that the number of tourists significantly decreased during the Chinese New Year holiday period, which is usually considered the peak tourism season. There are also forecasts that Chinese travelers' spending could decrease by more than 3 trillion won in the future.

According to local Japanese media such as NHK, due to the impact of the novel coronavirus, the number of tourists at major tourist spots in Japan, including Asakusa in Tokyo, has decreased by about 20-30% compared to previous years. In Osaka, another major tourist destination, cancellations of reservations by Chinese tourists are continuing. At the Rihga Royal Hotel in Osaka, reservations for 144 rooms booked from January 25 to the end of February were canceled. Similarly, the Daikoku Hotel Osaka branch experienced an average of about 20 room cancellations per day during the same period. In Nara Prefecture, where a bus driver who transported tourists from Wuhan was reported as a secondary infected person, the number of tourists reportedly decreased to one-tenth of the usual number.

Japan's tourism industry is expected to suffer a significant blow. This is because after anti-Korean sentiment led to a decline in Korean tourists, Chinese tourists had become the mainstay of Japan's tourism industry. According to the Japan National Tourism Organization, the number of Chinese visitors to Japan last year increased by 1,214,266 (14.5%) from the previous year to 9,594,300, making them the largest group among foreign travelers to Japan.

If the novel coronavirus continues to spread worldwide and remains rampant after April, there are concerns that foreigners planning to visit Japan around the Tokyo Olympics and Paralympics may hesitate to travel. SMBC Nikko Securities predicted that if group tours by Chinese tourists are suspended for more than six months, Chinese travel expenditure in Japan will decrease by 295 billion yen (approximately 3.2486 trillion won).

This content was produced with the assistance of AI translation services.