- 14 Mar 2002
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Over the last decade, the expenditure of foreign visitors in Japan has seen a remarkable fivefold increase, solidifying its position as the country's second-largest export sector and highlighting a transition from goods to services. According to government data, in the first quarter of 2024, nonresident households' direct purchases in Japan's domestic market reached an annualized 7.2 trillion JPY (USD 45.1 billion). This figure peaked at 4.6 trillion JPY in the quarter ending December 2019, then experienced a decline due to the COVID-19 pandemic. Still, it surged past this level in the April-June quarter of 2023 and has been on an upward trajectory ever since.
Tourism from overseas is becoming a pivotal component of Japan's economy, with the 7.2 trillion JPY figure surpassing the revenues from electronic components and steel, the country's second and third-largest exports in 2023, and exhibiting a growth rate that outpaces these sectors. Specifically, quarterly spending by tourists increased by just over 60% in the five years leading up to March 2024, while the annual exports of automobiles and steel each grew by approximately 45% from 2019 to 2023, and electronic components saw a growth of less than 40% during the same timeframe.
Paywall alert:
Tourism from overseas is becoming a pivotal component of Japan's economy, with the 7.2 trillion JPY figure surpassing the revenues from electronic components and steel, the country's second and third-largest exports in 2023, and exhibiting a growth rate that outpaces these sectors. Specifically, quarterly spending by tourists increased by just over 60% in the five years leading up to March 2024, while the annual exports of automobiles and steel each grew by approximately 45% from 2019 to 2023, and electronic components saw a growth of less than 40% during the same timeframe.
Paywall alert:
Tourism surges to Japan's No. 2 'export,' behind cars
Annualized spending hits $45bn amid weak yen, outpacing electronic parts and steel