Japan reopens today but travel rebound could be a while off

On September/22/2020 in Kyoto, Japan. Girls walking the streets of Kyoto in colorful Kimono.

Japan officially reopened its borders to travellers today after two years of isolation, but the expected tourism rebound could still be a while off.

The country reinstated visa-free travel from today to dozens of countries, including Australia.

Despite the Japanese government’s high hopes for tourism to reinvigorate the economy, spending from overseas visitors will only reach 2.1 trillion yen (about $23 trillion) by 2023, according to Nomura Research Institute economist Takahide Kiuchi, far less than Prime Minister Fumio Kishida’s goal of 5 trillion yen (about $54.5 trillion).

Travellers on the ground at Narita Airport told Reuters that Japan’s largest airport was “like half a ghost town”.

Many shops at the airport remain closed and are unlikely to reopen until next spring, according to Sawato Shindo, the president of Amina Collection Co which owns several souvenir shops at the airport.

“I don’t think there’s going to be a sudden return to the pre-pandemic situation,” Shindo told Reuters.

“Restrictions are still pretty strict compared to other countries.”

The country is also facing a stark tourism skills shortage, with government data showing hotel employment slumped by 22 per cent between 2019 and 2021.

Around 73 per cent of hotels across the country said they were short-staffed, according to research cited by Reuters.

Hospitality workers moved on to jobs with higher wages and better working conditions, so luring them back has proven difficult.

“The hospitality industry is very infamous for low wages, so if the government values tourism as a key industry, financial support or subsidies are probably needed,” Shindo added.

Japan is still encouraging travellers to wear a mask indoors and the government recently approved changing hotel regulations so guests can be refused for disobeying restrictions.


Image: iStock/petesphotography

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