The Land of the Rising Tourism
In the modern era after the Second World War, Japan became a major source of outbound tourists. This was in stark contrast to its former relative isolation from the rest of the world.
By Joan Henderson
In the modern era after the Second World War, Japan became a major source of outbound tourists. This was in stark contrast to its former relative isolation from the rest of the world. Inbound tourism did not keep pace, but recent years have seen a striking rise in arrivals which is forecast to continue and is an interesting case of how countries develop as tourist destinations.
By the beginning of the current century, Japan was still lagging behind many other Asian nations regarding foreign visitors. The planned target of doubling the number of arrivals to 10 million visitors by 2010 was impeded by the global financial crisis commencing in 2008 and again by the 2011 earthquake and its aftermath, both of which precipitated a sharp drop in demand. However, inbound tourism numbers revived in 2012 to exceed 8 million and then climbed rapidly to a record 19.8 million in 2015. The majority of these tourists are Asian and spearheaded by Korea, Taiwan and China.
Receipts have grown correspondingly and, in 2015, foreign tourists spent more in Japan than Japanese tourists overseas, a situation last witnessed in the 1970s. The World Travel and Tourism Council estimates that travel and tourism directly accounted for 2.4% of Japan’s GDP and employed 1.8% of the labour force in 2014, contributions which are significantly higher when indirect outcomes are added. The industry’s value is expected to rise further given the predicted increases in arrivals, boosted by Japan’s hosting of the 2020 Summer Olympics. The initial target of 20 million for that year was revised upwards in 2015 to 30 million, suggesting official optimism.
Recent trends reflect conditions within the country at large as well as the tourism industry. Economic difficulties have led to a new awareness of tourism’s role as an instrument of regeneration nationally and locally. Perceived and actual high costs of visiting Japan have discouraged many in the past, but travel has become more affordable because of the yen’s depreciation. Social change is occurring and the Japanese population are growing more accustomed and receptive to outsiders. Communication barriers remain, yet are being offset through foreign language speaking staff and signage together with information communication technology tools. The physical environment is another weakness, as well as an asset, in view of Japan’s location on the so-called Pacific ‘ring of fire’ characterised by regular earthquakes and volcanic eruptions. Serious earthquakes are likely to recur, disrupting tourism and causing anxieties about safety, but tourism has demonstrated resilience and an ability to recover. Levels of preparedness also offer visitors reassurance.
These wider circumstances set the scene for the operation of the tourism industry and visitor experience. Japan has advantages of diverse and unique attractions, a good stock of amenities, and efficient transport systems which include an expanding civil aviation sector providing international air connectivity. Governments have pursued pro-tourism policies and introduced administrative reforms, amongst them a relaxation of visa restrictions. Destination marketing has intensified globally, communicating information and positive images, capitalising on the country’s existing strong brand and favourable associations. Limitations are acknowledged and are being addressed.
Progress as an international tourist destination is indicated in the travel and tourism competitiveness index produced by the World Economic Forum. Japan was rated ranked ninth out of 141 countries in 2015 compared with 2007 when it was positioned 25 out of 124. Advances have additionally been facilitated by external developments such as economic growth in South East Asia and an enlarged middle class of consumers who are eager travellers. There have been moves towards a less regulated airline industry and foreign relations have improved amongst some countries with greater endeavours at cooperation; for example, in negotiations about the Trans Pacific Partnership. New transport and information communication technologies are also favouring global tourism.
Numerous factors and forces are therefore at work, alongside competitive pressures, creating some unpredictability and prompting questions about attainment of the 2020 goal. Tourism is vulnerable to a host of agents and occurrences which can confound predictions. Unexpected events nationally and internationally could occur with implications, both favourable and unfavourable, for tourism. There are domestic economic and political problems to resolve and foreign demand cannot be guaranteed to grow. The lucrative Mainland Chinese market could be adversely affected by a downturn in that country’s economy and the fall-out from wrangling over sovereignty in parts of the South China Sea. In East Asia, North Korea poses a nuclear threat and Chinese assertiveness is adding to geopolitical instability. The new regime in Washington and realignment of foreign policy is a further cause of insecurity. Private industry and official bodies in Japan thus confront both opportunities and challenges as they endeavour to sustain the country’s rising popularity amongst foreign tourists.
About the author
Joan C. Henderson is an ACI Fellow who has an MSc in Tourism from the University of Strathclyde in Glasgow and a PhD in Economics and Social Studies from the University of Edinburgh. She joined NTU in 1997 and is currently an Associate Professor in Nanyang Business School where she specialises in Tourism Studies. Her research interests include tourism crisis management, destination development and marketing and the presentation of heritage as a tourist attraction. The focus is on such questions within a global context with particular reference to Singapore and the Asia Pacific region. Professor Henderson’s publications include international journal papers, book chapters and a book. She reviews regularly for several journals and is a member of the Editorial Board of four tourism and hospitality journals.
