Japan is a beautiful country that attracts millions of tourists every year. With its rich culture, unique traditions, and stunning landscapes, it’s no wonder that Japan has become a top destination for travelers from all over the world.
But just how much does tourism contribute to Japan’s economy? In this article, we will explore the percentage of Japan’s economy that is attributed to tourism.
Overview of Japan’s Economy
Before diving into the specifics of Japan’s tourism industry, it’s important to have a basic understanding of the country’s economy as a whole. Japan has the third-largest economy in the world, behind only the United States and China. Its Gross Domestic Product (GDP) is approximately 4.9 trillion USD, making it a major player in the global market.
How Much Does Tourism Contribute to Japan’s Economy?
According to data from the World Travel and Tourism Council (WTTC), tourism contributed approximately 7.4% of Japan’s total GDP in 2019. This translates to roughly 32 trillion yen or 298 billion USD. While this may seem like a relatively small number compared to some other countries that rely heavily on tourism, such as Thailand or Spain, it still represents a significant portion of Japan’s overall economy.
Breakdown of Tourism Revenue
So where does this revenue come from? The majority of tourism revenue in Japan comes from domestic tourists rather than international visitors.
In fact, domestic travelers account for nearly 80% of all tourism spending in the country. This is largely due to the fact that travel within Japan is relatively affordable and accessible compared to other destinations.
That being said, international tourism is still an important source of revenue for many businesses in Japan. In 2019, international visitors spent approximately 4 trillion yen or 37 billion USD in the country. This number has been steadily increasing over the past decade, with the government implementing various initiatives to attract more foreign tourists.
Impact of COVID-19
Of course, it’s important to note that these numbers are based on pre-pandemic data. Like many other countries around the world, Japan’s tourism industry has been hit hard by the COVID-19 pandemic.
In 2020, international tourist arrivals to Japan dropped by 87% compared to the previous year. This has had a significant impact on businesses that rely on tourism revenue, particularly in popular destinations such as Tokyo and Kyoto.
Conclusion
In conclusion, tourism is an important contributor to Japan’s economy, accounting for approximately 7.4% of its GDP in 2019. While domestic travelers make up the majority of tourism spending in the country, international visitors still play a significant role in generating revenue for businesses across Japan. However, like many other countries around the world, Japan’s tourism industry has been severely impacted by the COVID-19 pandemic and it will likely take some time for it to fully recover.