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Tourism is an effective way for Japan to pull in the purchasing power of growing Asian markets. Domestic demand is unlikely to gather momentum in the long run as the population declines.

6 Comments

Yuichi Kodama, an economist at Meiji Yasuda Life Insurance in Tokyo. (Bloomberg)

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Tourism is an effective way for Japan to pull in the purchasing power of growing Asian markets. Domestic demand is unlikely to gather momentum in the long run as the population declines.

Agreed, but the probolem is: Who wants to go visit a country with a shrinking and aging population? Tourists want to go to the lastest "hot spot", not a country perceived as fading away.

-3 ( +0 / -3 )

Actually jerseyboy, Japan's ancientness is an attraction for many tourists, who better to experience the ancientness from than an ancient person?

I think the chief barrier to tourism is some of the outrageous costs of goods and services in Japan. Finding a reasonable price is a challenge and its not the sort of challenge your average tourist wants.

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Actually jerseyboy, Japan's ancientness is an attraction for many tourists,

Yup, just keep believing that while folks flock to Thailand, Cambodia, Vietnam, etc. Sure, there is a small, very small, minority of travelers who are looking for "ancient" attractions to base a vacation on. But, in order to really impact the country's economy, as Kodama-san is suggesting, you need to appeal to a much broader group than that. Especially amomg millenials, who are the growing target group in tourism these days.

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jerseyboy.... you have heard of Angkor Wat Archaeological Park, Chiang Mai, etc.? those are pretty ancient in terms of tourism sites and draw 100,000s if not millions every year.

Thailand and Vietnam have diversified into resort tourism, ecotourism and even medical tourism to be fair (Cambodia is beginning to take steps in this direction as well).

Speaking as someone who works in the industry here, Japan does have a lot going for it in terms of cultural tourism as well as retail or package tours not to mention. Add in a very good infrastructure and you can see the attraction.

The major issue - in my opinion- is probably more to do with the reluctance in some parts of the industry (and government!) to fully embrace foreign inbound tourism as a target market.

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Domestic demand is unlikely to gather momentum in the long run as the population declines

So what? Who cares? Never mind about hoarding money -- share the wealth.

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I come here because I like the fact that I'm in security and I don't have to always think about my credit card and 100 000Y in my wallet. I always put my wallet on the table something I wouldn't do anywhere else except maybe in Canada outside of the big cities. Also, I can take a walk at 2-3-4 am and it is still safe. Also, the country is clean and I wouldn't go to a dirty place. I only want to go somewhere as clean as Canada or better.

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