Record numbers of foreign visitors are flooding Japan, and many of them are living like kings thanks to the falling value of the yen, splurging on everything from kimonos to cutlery and delicious dinners.
French visitor Katia Lelievre, 36, laughed as she said, “I bought three pairs of shoes, which is something I would never normally do,” in the busy Asakusa neighbourhood of Tokyo, which is well-known for its Buddhist temple and gift stores.
The Converse, Nike, and Adidas labels are the same as those found in Europe; yet, due to the favourable exchange rate, she told AFP, “it was worth it” to purchase.
“Cheap food is available. (I spent a lot) mainly on groceries. The 31-year-old Italian visitor Dominique Stabile told AFP, “I tried everything I wanted.”
“I had a budget set and I didn’t exceed it, so I’m happy.”
Additionally benefited are nearby companies.
“Many individuals compute the amount and, upon seeing the equivalent in their home currency, they exclaim, ‘Wow, I’m going to buy that too.'” Saori Iida is employed at a store that offers traditional, pre-owned Japanese clothing.
“Yesterday, we had someone who bought 15 kimonos,” she explained.
“Foreign customers are purchasing a lot of handmade knives, even as prices rise,” Yuki Suzuki, 21, who works at a knife shop—another popular tourist destination—said of the weakening yen.
“I feel like there are now more customers who want to own sets and buy a little more, for example, several blades made by the same craftsman,” she stated to AFP.
For the first time since the Covid pandemic crippled travel, more than three million foreign visitors visited in a single month in March, an increase of 11.6% from the previous month.
During the first three months, spending per person increased by 52% over the same period last year.
Changes in currency help to clarify why. A dollar was worth 112 yen in 2019, up from a 34-year low of nearly 158 on Wednesday, May 1. It briefly exceeded 160 on Monday.
A bowl of ramen noodles costs about 1,000 yen, or about $8.90 (US dollars) in 2019. That’s about $6.30 now.
Five years later, the same luxury watch or handbag that was once priced at 700,000 yen in Tokyo would only cost the equivalent of $4,430.
When tourists present their passports, many stores waive Japan’s 10% sales tax.
The Japanese tourism bureau reports that travellers from Britain and Spain are the next highest spenders per capita, after Australians.
The Bank of Japan’s unconventional strategy of maintaining ultra-low interest rates while other central banks have raised theirs is partially to blame for the currency’s decline.
Since March 2023, household consumption in Japan has been steadily declining as a result of inflation and declining purchasing power brought on by the weaker yen.
The influx of wealthy foreign visitors who clog their favourite restaurants and crowd stores is another source of annoyance for some Japanese people. A community intends to erect a wall to obstruct its view of Mount Fuji.
Travel analyst and economist Akiko Kohsaka of the Japan Research Institute remarked that tourists are “getting great value for money.”
“It may mean tourists may choose to stay at better hotels than usual, or stay in Japan for an extra day or buy brand items,” she stated to AFP.
“Even with sandwiches or hamburgers — things that visitors can buy at home — they can sense that they would not get that kind of value for their money at home,” said Kohsaka.
“Japan should be confident in its ability to draw tourists. I do not believe that there would be a significant decline in tourist expenditure, even if the yen were to reverse its path.”
