Tourist Spending Boosts Economy: Japan’s “Tourism Nation” Strategy Pays Off

Japan’s “Tourism Nation” plan, launched many years ago, has finally borne fruit. The nominal consumption of visitors to Japan from January to March this year has translated into an annual figure of 7.2 trillion yen (approximately $449 billion), a fivefold increase over the past decade. The tourism industry has become one of the key pillars supporting the Japanese economy, ranking just behind the automobile industry.

Foreign visitors’ consumption of 7.2 trillion yen, while not reaching the top-ranked automobile industry at 17.3 trillion yen (approximately $1.078 billion) in the 2023 export industry ranking, has exceeded the previous second-ranked semiconductor and electronic components industry at 5.5 trillion yen (approximately $343 billion), as well as the former third-ranked steel industry at 4.5 trillion yen (approximately $280 billion), becoming one of the crucial pillars of the Japanese economy. The “Tourism Vision for Supporting Japan’s Future,” established in March 2016, has now become a reality.

In terms of growth rates, compared to 2019, the export values of automobiles and steel in 2023 increased by approximately 45%, while semiconductor and other electronic components grew by nearly 40%. The consumption of visitors to Japan from January to March 2024 has increased by over 60% compared to the same period in 2019. Although direct comparisons may not be straightforward, the upward trend in visitor spending in Japan does indeed surpass the momentum of major export categories.

After the burst of the economic bubble in the early 1990s, traditional manufacturing industries shifted significantly overseas, leading to the “hollowing out” of domestic industries in Japan. The country has been seeking new growth industries ever since. Starting with the Koizumi government in 2003, a four-year plan to develop the tourism industry was launched under the Abe Shinzo cabinet in June 2007, introducing the “Tourism Nation Promotion Plan.” In October 2008, the Tourism Agency and other governing departments were established, initiating the growth of the tourism industry in Japan to accommodate more foreign visitors. At the initial stage of this plan, expanding the number of Chinese tourists visiting Japan was one of the goals. Individual tourist visas were issued to Chinese nationals starting from July 2009.

In 2016, the number of foreign visitors to Japan exceeded 20 million for the first time, with visitors from mainland China leading the way, surpassing 5 million people, accounting for a quarter of the total.

With a large influx of Chinese tourists into Japan, apart from experiencing Japanese culture, they have also been avid consumers of Japanese beauty and skincare products, home appliances, and health supplements, creating various legendary “buying sprees.” Among these, Japanese rice cookers from the early days of Chinese tourists’ visits to Japan have incredibly high popularity, reportedly linked to a gift of a high-end rice cooker from Abe Shinzo to the wife of China’s former Premier Wen Jiabao during her visit to Japan.

Ishii Nobuyuki, a city councilor in Kunitachi City, Tokyo, disclosed that during a summer training session for LDP district councilors in July 2012, then-Prime Minister Abe spoke about Japanese agriculture, expressing confidence in the quality of Japanese rice and mentioning the former visit of Wen Jiabao’s wife to purchase a large quantity of premium Japanese rice at a top-tier department store.

Public records show that Wen Jiabao visited Japan three times during his tenure as Premier, in April 2007, October 2008, and May 2010. While Ishii did not specify which visit Wen’s wife made, the discussion strongly suggests the high likelihood of her visit during Wen’s trip to Japan in 2007.

According to Ishii, upon learning of Wen Jiabao’s wife’s fondness for Japanese rice, then-Prime Minister Koizumi remarked, “Japanese rice (deliciousness) cannot be separated from Japanese rice cookers.” As a result, Abe presented Wen’s wife with roughly 10 Japanese-made high-end rice cookers, to which she expressed her gratitude.

Ishii stated that quality items speak for themselves, with high-end Japanese rice being highly sought after in China and considered a premium gift. Subsequently, Japan began exporting high-quality rice varieties like Koshihikari to China and saw a surge in the popularity of Japanese rice cookers in the Chinese market.

During the influx of Chinese tourists to Japan in 2015, a technical supervisor at a Japanese-based Chinese IT company told Epoch Times that the company’s president always carried 2kg bags of high-quality Japanese rice in his luggage when returning to China. In his social circle where high-end products abound, Japanese rice is universally beloved.

In addition to savoring Japanese cuisine and indulging in shopping sprees for Japanese products, Chinese tourists visiting Japan have been deeply impressed by the safety and peace of Japanese society, the graciousness and humility of Japanese people across various industries, leaving a lasting impression.

A female tour leader from Qingdao, visiting Japan for the first time, shared with Epoch Times in Ginza that entering shops and hotels feels like being welcomed as a guest; on the bustling streets, there is no loud noise to be heard; the kindness, politeness, and attentive service of the Japanese people are truly eye-opening. Over 40 tourists in the travel group shared this sentiment, realizing that the Japanese people are far from the portrayal by the Chinese Communist Party in their home country.

The tour leader also mentioned that group members were astonished to see Japanese individuals casually placing their wallets and phones in their back pockets on the streets, wondering if they were not fearful of theft. Upon learning that Japan has minimal petty crimes, they all expressed incredulity.

She said, “China was once known as the ‘Land of Etiquette,’ but experiencing this level of manners in Japan made me realize that this is the national image that Chinese people should have.” Many group members have expressed a desire to return to Japan next time with their families for personal travel, to explore more places.

After the pandemic, the continued depreciation of the yen has boosted a significant number of visitors to Japan. Data released by the Japan National Tourism Organization (JNTO) on June 19 showed that the number of visitors to Japan in May exceeded 3.04 million, a 60.1% increase year-on-year, surpassing the 3 million mark for the third consecutive month.

Among 23 world tourism markets, 19 markets (including South Korea, Taiwan, Hong Kong, Singapore, Indonesia, the Philippines, Vietnam, India, Australia, the United States, Canada, Mexico, the United Kingdom, France, Germany, Italy, Spain, the Nordic region, and the Middle East), set a record for the highest number of visitors to Japan in May.

In response to the continuously growing tourism industry, on March 31, 2023, the Japanese government formulated a new growth strategy for the next six years, with “sustainable tourism,” “expanding consumption,” and “increasing local visitor volume” as key elements. One of the goals is to achieve foreign visitor consumption of 5 trillion yen (approximately $311 billion) and domestic Japanese visitor consumption of 20 trillion yen (approximately $1.245 billion). The consumption of foreign visitors from January to March this year amounts to 7.2 trillion yen (approximately $449 billion), prompting attention on how this achievement can be consolidated.