The words “weak” and “yen” generally refer to a range of negatives for Japan, from rising import costs to cuts in household spending due to inflation.
However, there is a positive side to the ever-depreciating currency: Many tourists from abroad are turning to Japan as a destination that offers surprisingly good value for money.
In today’s post-pandemic world, Japan is firmly shedding its decades-long reputation as one of the world’s most expensive destinations, a long-standing legacy of the champagne-flowing, chandelier-swaying, pre-crash 1980s.
This is reflected in the record levels of foreign tourists to Japan, driven in part by the weakness of the yen; This allows them to enjoy refreshingly low price tags on everything from food to fashion.
The decline of the yen has been well documented. Fueled in part by the government’s maverick policy of extra-low interest rates, the yen recently hit a 34-year low of 160.2 against the dollar and a nine-year low of 197.74 against the pound.
That’s why tourists flock to Japan. One consequence, of course, is increasingly loud concerns about overtourism, especially at popular destinations across the country, from Kyoto’s Gion district to Mount Fuji viewpoints.
But there is also no doubt that the weak yen has left a positive mark in terms of higher spending levels among tourists.
The numbers speak for themselves: The number of incoming foreign tourists exceeded 3 million for the first time in March; This represents an increase of 11.6 per cent since March five years ago, before Covid emerged.
Meanwhile, total spending per capita increased by 52 percent between January and February this year compared to the same pre-pandemic period in 2019.
“Japan often surprises people by not being as expensive as one might think,” says James Mundy of InsideJapan Tours. “It has a reputation for being an expensive country and dates back to the ‘bubble jidai (era)’ in the 80s.
“The weakening of the yen means it is worth more than usual when arriving in Japan, and potentially means people can experience more value for money. One of the biggest expenses on holiday is food and drink, but you can often buy lunch sets or lunch sets at cafes for 1,000 yen (about £5).” you’ll see bowls of ramen or ‘kaiten’ conveyorized sushi plates for 150 yen (less than a pound).
“Besides the cheap costs, the quality of food as well as service is generally much better than ours. The main temples and gardens are usually free or cost a few quid.
“Tube journeys in Tokyo usually cost less than a pound and, again unlike the UK, everything is on time. Some of the higher-end, more exclusive experiences, such as a day with the swordsman or tea with the geisha, will be more accessible to visitors with better exchange rates. “It’s a great time to experience Japan, despite the big price tags for flights and accommodation.”
Hotels are one area that can still tighten wallets. Japan is home to some of the most expensive hotels in the world, especially considering its high-rise luxury properties. According to hotel industry tracker STR, the average daily room rate for a hotel in Japan in February 2024 was 18,915 yen (£96); This represents a 25.5 percent increase from the previous year and an increase of over 35 percent from 2019. .
But for many visitors, other benefits outweigh the increased cost of accommodation; i.e. shopping, with Australians spending the most per capita, followed by visitors from the UK and Spain, according to the Japanese tourism agency.
Among visitors taking advantage of the weak yen recently is French tourist Katia Lelievre, who told AFP in Tokyo’s Asakusa district: “I bought three pairs of shoes, which is something I would never normally do.”
While the shoe brands he bought (Converse, Nike, Adidas) were available in Europe, he decided to make the leap because the exchange rate was strong, adding: “It was really worth it.”
Japan’s famous cuisine is also increasingly accessible, even when budgets are tight. Dominique Stabile, 31, from Italy, says: “The food is really cheap. I tried everything I wanted. I had a budget and I didn’t exceed it, so I’m happy.”
The increase in tourists’ spending on local businesses is a welcome development. Saori Iida, who works at a store selling traditional second-hand Japanese clothing, describes how a customer bought 15 kimonos the day before.
“A lot of people do the math and when they see the equivalent in their country’s currency they say, ‘wow, I’ll buy that, too,'” he says.
Another effect of the weakening of the yen is that tourists are choosing to stay in Japan longer and are also becoming more adventurous in going off the usual tourist routes in search of deeper experiences.
Carolyn Addison, product manager at luxury tour operators Black Tomato, says: Telegram: “Our customers are certainly appreciating the great value of traveling to Japan right now, and with the currently weak yen, we’re seeing them take advantage of the favorable exchange rates in countless ways.
“Many people are choosing to stay longer and travel to many destinations beyond Tokyo and Kyoto, with places like Osaka gaining popularity as a third city stop among customers, with the option to avoid Michelin-starred restaurants in favor of the city’s upscale restaurants. Established street food scene.
“We also enjoy being able to highlight the better value of Japan as a way to encourage travelers to adventure into lesser-known parts of the country.”