|Above, Hozomon gate at Senso-ji temple in Asakusa. Photo by Armand Vaquer.|
This has been brought up many times on this blog. If the Japanese yen gets stronger and the U.S. dollar buys less yen in foreign exchange, it would put the brakes on American tourism to Japan. The same goes with other currencies.
This has happened.
Financial Times reported:
The number of visitors to Japan rose 24 per cent year-on-year to a new record for June, but spending per person fell as yen strength put the brakes on a massive tourism boom.
Average revenue per tourist fell 10 per cent in the second quarter as free-spending Chinese tourists — famous in Japan for their “explosive shopping” — find the renminbi in their pocket no longer goes as far.
Inbound tourism has been one of Japan’s biggest sources of economic growth for the past few years. The new numbers suggest that trend will continue but highlight the drag from a stronger yen.
To read more, go here.