7 Million Koreans Visited, Money Flowed Freely... Japan Travel Industry Hits Jackpot

Travelers visiting Incheon International Airport Terminal 1 are moving to depart. Photo by Kang Jin-hyung aymsdream@

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Last year, the amount of money spent by foreigners visiting Japan reached an all-time high. With so many Koreans visiting Japan?accounting for about three out of every ten foreign visitors?the Japanese travel industry has also seen significant improvement.

According to the Bank of Korea's Tokyo office and the Japan National Tourism Organization (JNTO) on the 20th, the total number of foreign visitors to Japan last year was recorded at 25.07 million.

By country, Koreans were the largest group, accounting for 6.96 million visitors, or 28% of the total. The number of Korean visitors increased by 25% compared to 2019.

Following Koreans, Taiwan (4.2 million), China (2.43 million), Hong Kong (2.11 million), and the United States (2.05 million) were the next most frequent visitors to Japan.

The main reasons for the sharp increase in Korean visitors to Japan include the weak yen and the expansion of flight routes. The won-yen exchange rate is at its lowest level since the 2008 global financial crisis. Additionally, flight routes connecting various regions of Korea and Japan have been increased.

Bank of Korea Tokyo Office

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The spending by foreign visitors to Japan reached a record high of 5.3 trillion yen (47.84 trillion won). This amount surpasses the travel expenditure of 4.8 trillion yen recorded in 2019, when the number of foreign visitors reached a previous peak of 31.9 million.

By simple calculation, it is estimated that Koreans spent about 13 trillion won in Japan last year.

Thanks to this, the Japanese government was able to exceed the 5 trillion yen target set for 2025 in the 4th Basic Plan for Promoting Tourism Nation, announced in March last year.

Per capita spending increased significantly, especially in accommodation costs. The average accommodation cost per person rose by 33.8%, from 159,000 yen in 2019 to 212,000 yen last year.

The increase in accommodation costs was mainly due to longer stays (8.8 nights in 2019 → 10.2 nights in 2023) and rising accommodation prices. The Bank of Korea's Tokyo office explained that the weak yen and rising prices within Japan in 2023 also contributed to the increase in spending.

Nomura Securities expects that the number of foreign visitors to Japan and travel spending will continue to increase this year, supported by inflows from China, although the growth rate is expected to slow somewhat compared to the previous year.

The number of Chinese visitors is expected to recover fully, supported by an increase in direct international flights.

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