Japan’s tourism sector nears pre-pandemic recovery
Travel Biz News —-
Japan’s travel and tourism sector’s GDP contribution is forecast to reach USD 285.5 billion (JPY 37.6 trillion) this year. , according to The World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR).
This figure is only 6.8% shy of to the 2019 pre-pandemic high of USD 306.5 billion (JPY 40.3 trillion), and by end of year the sector could represent 6.8% of the total economy.
Despite the effects of the pandemic spanning into 2023 in Japan, WTTC is forecasting for the sector to create around 470,000 jobs this year, to reach nearly 5.6 million. This means around one in twelve workers in Japan, are directly or indirectly employed in the Travel & Tourism sector.
While the sector is still shy of 300,000 jobs to reach pre-pandemic levels, by the end of this year it will only be 5.2% below 2019 levels.
International visitor spend in Japan is forecast to surge by 553.4% this year to reach USD 16.8 billion (JPY 2.2 trillion), still 57.6% below the 2019 peak.
Last year the sector’s GDP contribution grew by 50.5% to reach more than USD 257 billion (JPY 33.9 trillion), representing 6.2% of the economy.
The sector saw jobs increase in 2022, from the previous year, to nearly 5.1 million jobs nationally – one in 13 jobs across Japan.
International visitor spend in Japan declined in 2022 as the effects of prolonged travel restrictions continued to have a chokehold on the sector. International visitor spend declined a by more than 31%, remaining 93.5% below 2019 levels.
Domestic visitor spend grew by 61.6% last year, virtually returning to 2019 levels, only 0.2% behind.
In 2022, the top source markets for international visitors to Japan were South Korea (24%), mainland China (10%), Taiwan, China (10%), U.S. (8%) and Hong Kong, China (7%), according to WTTC>
WTTC reveals that the sector will grow its GDP contribution to USD 353.4 billion (JPY 46.5 trillion) by 2033, nearly 8% of the Japanese economy, and will employ 6.7 million people across the country, with one in ten Japanese residents working in the sector.
Asia-Pacific
In 2022, the Asia-Pacific Travel & Tourism sector contributed USD 1.6 trillion to the regional economy, but this is still 50% behind the 2019 peak. WTTC forecasts the region’s GDP contribution from the sector will reach more than USD 2.6 trillion in 2023 – just 16% below the 2019 highpoint.
The sector employed over 155 million people across the region in 2022, an increase of 8.7 million from the previous year but still 15% behind pre-pandemic levels. WTTC forecasts the sector will fully recover the jobs lost during the pandemic by the end of 2024 or the beginning of 2025.
26 June 2023
