The Chinese government has called for its citizens to refrain from traveling to Japan. While this has raised concerns about the potential consequences of a decrease in Chinese visitors, CBRE believes any impact on the overall inbound tourism market is likely to remain limited. This is because the proportion of group tours by Chinese visitors to Japan, which used to account for around 50% of arrivals from this market, has fallen to 15.6%, indicating that the inbound market has become more resilient to changes in diplomatic relations. At the same time, the weak yen and attractive prices for foreigners are supporting an increase in visitor arrivals from other markets. The increase in demand from visitors, particularly from Europe, the U.S., and Australia—all of which are regions characterized by longer stays and rising shopping expenditure—should compensate for the decrease in inbound demand from Chinese visitors. Any negative impact on the hotel and retail sectors in the Japanese real e…The Chinese government has called for its citizens to refrain from traveling to Japan. While this has raised concerns about the potential consequences of a decrease in Chinese visitors, CBRE believes any impact on the overall inbound tourism market is likely to remain limited. This is because the proportion of group tours by Chinese visitors to Japan, which used to account for around 50% of arrivals from this market, has fallen to 15.6%, indicating that the inbound market has become more resilient to changes in diplomatic relations. At the same time, the weak yen and attractive prices for foreigners are supporting an increase in visitor arrivals from other markets. The increase in demand from visitors, particularly from Europe, the U.S., and Australia—all of which are regions characterized by longer stays and rising shopping expenditure—should compensate for the decrease in inbound demand from Chinese visitors. Any negative impact on the hotel and retail sectors in the Japanese real e…
Japan Brief: Hotel and Retail Sectors to Remain Resilient Despite Decrease in Chinese Visitors
