by In general, the words “weak” and “yen” spell a litany of negatives for Japan – from rising import costs to cuts in household spending due to inflation.
However, there is one silver lining to the ever-sliding currency: hordes of foreign tourists are taking advantage of Japan as a great value for money destination.
In today’s post-pandemic world, Japan is losing its decades-long reputation as one of the world’s most expensive destinations, a long-term legacy of its champagne-swilling, chandelier-swinging, pre-crash 1980s.
This is reflected in the record levels of foreign tourists heading to Japan, drawn in part by the weak yen – enabling them to enjoy incredibly low price tags across the spectrum, from food to fashion.
The decline of the yen is well documented. Due to the government’s maverick policy of ultra-low interest rates, the yen recently hit a 34-year low of 160.2 per dollar – and a nine-year record low of 197.74 per pound.
As a result, tourists are flocking to Japan. Admittedly, one consequence of this is an increasingly vocal concern about over-tourism, especially in popular hubs across the country, from Kyoto’s Gion district to Mount Fuji viewing spots.
But at the same time, there is little doubt that the weak yen is leaving a positive mark in terms of high levels of spending among tourists.
The figures speak for themselves: the number of foreign tourists increased by 3 million in March for the first time, which represents an increase of 11.6 percent from March five years ago, before Covid hit.
Meanwhile, the total amount of spending per person increased by 52 percent between January and February of this year, compared to the same pre-pandemic period in 2019.
“Japan often surprises people in that it’s not as expensive as they thought it would be,” says James Mundy, of InsideJapan Tours. “It has a reputation as an expensive country that dates back to the ‘jidai bubble (era)’ of the 80s.
“The weaker yen means it’s even more valuable than usual and people can get more experience with their money. One of the big holidays is food and drink but you’ll often see set lunches at cafes or bowls of ramen for ¥1000, which is around £5, or ‘kaiten’ takeaway sushi plates for 150 yen – less than a pound.
“In addition to the cheaper costs, the quality of the food is usually much better than what we have, not to mention the service. Main temples and gardens are often free or cost a few pounds.
“Subway journeys in Tokyo often cost less than a pound and again, unlike the UK, everything runs on time. Some of the higher end, more exclusive experiences like a day with a sword master or tea with a geisha will be more accessible to visitors with the better exchange rate. Despite the hefty price tags for flights and accommodation, it’s a great time to experience Japan.”
Hotels are one area that is likely to continue to strain wallets. Japan has some of the most expensive hotels in the world, especially when it comes to the cloud-swept high-rise luxury establishments. The average daily room rate for a hotel in Japan in February 2024 was 18,915 yen (£96) – up 25.5 per cent on the previous year – and over 35 per cent higher than 2019, according to STR, hotel industry tracker. .
For many visitors, however, other benefits outweigh the increased cost of accommodation – namely shopping, with the biggest spenders per person confirmed as Australians, followed by visitors from Britain and Spain. Japan tourism agency.
Among the visitors who took advantage of the weak yen recently is Katia Lelievre, a tourist from France, who explains to AFP, in the Asakusa district of Tokyo: “I bought three pairs of shoes, which I would never normally do.”
Although the shoe brands she bought (Converse, Nike, Adidas) are available in Europe, she decided to splurge because of the strong exchange rate, adding: “It was really worth it.”
Famous Japanese cuisine is even more accessible, even on a budget. Dominique Stabile, 31, from Italy, says: “The food is very cheap. I tried everything I wanted. I had set a budget and I didn’t exceed it, so I’m happy.”
For local businesses, an increase in tourists spending money is welcome. Saori Iida, who works in a shop selling second-hand traditional Japanese clothes, 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’m going to buy that too’,” she says.
One other effect of the weak yen is how tourists are choosing to spend more time in Japan, while also becoming more adventurous as they move off the beaten tourist path in search of deeper experiences.
Carolyn Addison, head of product for luxury tour operators Black Tomato, tells us The Telegraph: “Our clients are certainly appreciating the great value of travel to Japan at the moment and with the current weak yen we see them benefiting on the ground in many ways from the favorable exchange rates.
“Many are choosing to stay longer and travel further to multiple destinations outside of Tokyo and Kyoto, to places like Osaka, which is popular with clients as a third city stop where they have a choice of restaurants with eschewing the Michelin star in favor of the city. established street food scene.
“Also, we love being able to highlight the greater value of Japan as a way to encourage travelers to adventure to lesser-known parts of the country.”
