Latest statistics imply Japanese tourists seem to feel relieved gradually

The new coronavirus continues to cause a serious predicament for Japanese tourism industry

According to the Japan Tourism Agency's announcement, the number of guests who stayed at hotels and inns in Japan July 2020 decreased by 56% compared with the same month last year to 22.58 million. 

In particular, the total number of foreign guests staying at hotels and other accommodations in Japan was 320,000, astonishing 97.0% decrease compared to the same month last year, continuing worst decline. 

As for Japanese tourists, it fell by 45.7%. On the other hand, declining ratio of Japanese tourists improved by 15.5 points in July from 61.2% decrease in June showing a moderate recovery in demand for domestic accommodations. 

The occupancy rate of guest rooms is also improving after bottoming in May. It is thought that the eased restraint of movements across prefectures and “Go to Travel Campaign” by the Japanese government started on the July 22 have contributed a recovery in demand.
Japanese tourists seem to feel relieved gradually



Japanese resume traveling cautiously and tourist spots get crowded gradually

The Japanese government started to relax a rule limiting the size of crowds at sports events, movie theaters and others from Sep. 19, the first day of the four-day consecutive holidays. 

During holidays, people appeared less cautious about traveling and returned to tourist spots. Train stations and airports were filled with people traveling and local stores and restaurants at tourist destinations around country were crowded with tourists. 

Furthermore, newly generated demand for accommodations from those who want to stay in rural areas with hot springs and other charms for a long time to avoid crowding may emerge leading to the improvement of situations for tourism industry. 

Some experts point out that Covid-19 pandemic may fuel the growth of Japan’s micro-tourism market which will focus on simplified itineraries with limited destinations and activities to minimize exposure to the virus. 

Now Yoshihide Suga, who has credited himself for the efforts in achieving a booming foreign tourism industry in Japan, was elected as the new prime minister on Sep. 16. He is expected to put his top priorities on fighting the coronavirus and turning around an economy battered by the pandemic by promoting tourism. Some media forecasts that Japanese investors will bet on Suga's Abenomics 2.0 and may buy tourism related stocks.

 

 

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