"Luxury Goods Worth 4.8 Million Won Selling Well"… Japan Sees Wealthy Travelers Flock Due to Weak Yen and Eased Quarantine Measures

Department Store Duty-Free Sales Near Pre-COVID Levels
Recovery in Hotel and Lodging Demand... Room Rates on the Rise

On October 17th, tourists were selecting souvenirs at Asakusa Sensoji, a representative tourist attraction in Tokyo, Japan. Photo by AP·Yonhap News

[Asia Economy Reporter Kim Jung-wan] As COVID-19 quarantine regulations have been eased, the number of travelers to Japan has increased, leading to a recovery in sales for department stores, duty-free shops, hotels, and other industries within Japan.

According to the Nihon Keizai Shimbun on the 19th, with the relaxation of COVID-19 measures, the number of Japanese travelers, mainly affluent individuals, has increased, and some department stores and hotels have shown signs of recovery, posting sales exceeding pre-COVID-19 levels since December.

The Japanese government lifted the ban on individual travel to Japan on October 11 and resumed visa exemption measures for short-term stays for certain countries. According to the Japan National Tourism Organization (JNTO), the number of visitors to Japan in October was 490,000, which is 2.4 times the number in September. Although this is about 20% compared to October 2019 before the COVID-19 pandemic, the number of Korean visitors to Japan has recovered to about 60% of pre-pandemic levels. Visitors from Southeast Asia, the United States, and Europe are also reported to be increasing.

Additionally, due to the weak yen, consumption by visitors to Japan at department stores, duty-free shops, and hotels appears to have increased. According to the Japan Department Stores Association, duty-free sales in October amounted to 13.6 billion yen (approximately 130.424 billion KRW). Although this is a 47% decrease compared to the same month in 2019, duty-free sales in November at five major department stores recovered to 50-90% of 2019 levels. In particular, duty-free sales at Mitsukoshi Isetan Department Store from late November to early this month increased by 4% compared to the same month in 2019.

At Matsuya Ginza Department Store (Tokyo main branch), sales of luxury brand bags and high-end watches around 500,000 yen (approximately 4.8 million KRW) have reportedly increased since November. In fact, duty-free sales at Matsuya Ginza from the 1st to the 15th rose by 5.7% compared to the same period in 2019.

Along with increased consumption, hotels are also benefiting from a tourism boom. According to JNTO’s accommodation travel statistics survey, the total number of overnight guests nationwide in October reached approximately 44.26 million, a 38% increase compared to the same month last year.

With demand recovering, average room rates are also on the rise. The average room rate at the Tokyo Palace Hotel in November was higher than the same period in 2019. The proportion of foreign guests exceeded 60%, and December sales are expected to set a record high on a monthly basis.

Meanwhile, it is forecasted that the number of visitors to Japan will increase further next year. Nomura Research Institute projected that the number of visitors to Japan in 2023 will be 13.84 million. Although this figure falls short of the 31.88 million visitors in 2019 before COVID-19, it represents nearly a tenfold increase compared to 1.52 million visitors from January to October this year.

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