Post-pandemic tourists in Japan are changing their spending patterns, moving away from cosmetics and medicine towards folk crafts and jewelry. This shift in consumer behavior can be attributed to the changing demographics of visitors, with more Europeans traveling to Japan and fewer Chinese tourists due to travel restrictions. The Japan Tourism Agency has reported an 80% increase in spending on traditional handicrafts per visitor in the July-September quarter, reaching ¥13,338 ($92). On the other hand, sales of cosmetics have decreased by 30% during the same period.
In the past, drugstores and retailers in Japan heavily relied on Chinese tourists, who would often buy out entire shelves. However, with a decrease in mainland Chinese tourists and a slowing economy in China, these businesses can no longer rely on their spending. Even though the weakening yen has made tours to Japan more affordable, the slowing economy in China has had a significant impact on tourist spending.
As a result of changing tourist preferences and demographics, certain product categories are experiencing a boom. Traditional Crafts Aoyama Square, for example, has seen a 20% increase in duty-free sales compared to pre-pandemic levels. This store offers a wide range of hand-made merchandise, including lacquered boxes, iron kettles, and ceramics. Since the end of 2022, Manager Kazuhiko Asakawa has noticed an increase in travelers from Mexico, Brazil, and Poland.
Similarly, Ito-ya Ltd., a well-known shop in Ginza that sells pens, notebooks, and stationery, has witnessed a doubling of duty-free sales since before the pandemic. This store has become a popular destination for many tourists, especially those who discover it through social media. Some visitors, like Sinduja Venkat from India, are drawn to Ito-ya to purchase stationery for their children to use at school.
Despite the growing consumption by tourists in Japan, the country still lags behind other countries in the region in terms of total spending per visitor. In 2022, Japan had an average spending of $2,411 per tourist, compared to $5,524 in Hong Kong and $6,526 in Australia. To compete with other countries, Noriko Yagasaki, a professor at Tokyo Woman’s Christian University, suggests that Japan needs to improve its entertainment and services. Yagasaki believes that focusing on providing experiences in addition to selling goods can boost spending by visitors. However, the tourism industry in Japan faces challenges due to a labor shortage, including a lack of tour guides and staff, which affects the quality of services. The Japanese inn and hotel sector has recently reported the highest-ever level of staffing shortages.
While an influx of tourists can potentially stimulate economic activity, it also presents challenges, particularly with the existing labor shortage. Yagasaki emphasizes the need to improve the quality of services in the upcoming years. As Japan strives to recover economically from the impact of the pandemic, it will be crucial to focus on enhancing the tourism experience and addressing labor shortages.
Useful links:
– Japanese tourists spending habits on the rise
– Japan National Tourism Organization
