Japan Records Record Visitor Spending Despite Falling Numbers

Foreign visitor spending in Japan reached 7.06 trillion yen (about $45 billion) in the nine months through September, the highest level recorded for this period, up 1.9% from last year, according to the Japan Tourism Agency.

Spending in the third quarter from July to September rose 3.2% year-on-year to 2.2 trillion yen, led by Taiwan at 382 billion yen, followed by China at 358 billion yen. Average spending per visitor reached 233,677 yen in the quarter, an increase of 6.1%.

This growth came despite a 2.9% drop in foreign arrivals to 30.73 million over the same period, marking the first nine-month decline since 2021. South Korea topped the list of nationalities with 8.3 million visitors, up 21.6%, followed by Taiwan with 6 million, up 19.1%, then China with 3.3 million, the United States with 2.5 million, and Hong Kong with 2 million. In September alone, the number of visitors dropped 5% to 3.1 million, with arrivals from China plunging 44.5% to 430,800 visitors, marking the tenth consecutive month of decline amid tense relations between Beijing and Tokyo following remarks by Prime Minister Sanae Takaichi regarding Taiwan.

The record figure shows that Japan is generating higher revenue from fewer visitors, as average spending per visitor increases with tourists focusing on shopping, accommodation, and services, which the government relies on to support the local economy.

What do these terms mean?

Yen: The official currency of Japan, represented by the symbol ¥.

Tourism Spending: The amounts spent by foreign visitors inside Japan on accommodation, food, shopping, and transportation.

Third Quarter: The period from July to September, which is the third three-month period in the calendar year.