The Japanese retail market is taking advantage of the increased number of tourists in the Asian country. Attracted by an effective promotional campaign and a weakening yen, foreign travelers reached an impressive 10 million in 2013, doubling attendance in ten years. They spent $14 billion on Japanese soil last year, buying everything from green tea to Prada handbags.
Most of the increase in tourism comes from Thailand and Malaysia, countries from which the obligation to issue temporary visas was recently removed.
According to data from the association of department stores, spending in duty free shops in 46 shops across the country grew by 54% in April to 6,09 billion yen. The situation therefore looks rosier than that of the 214 department stores nationwide which saw revenue drop by 12% to 417,2 billion yen. “Up until now we have been a bit passive,” comments Hideyuki Murakami, executive officer of Isetan Mitsukoshi department stores. "But as attendance increases, we should ensure better services, including translation services, and product selection."
Tokyo now has the goal of doubling the number of visitors to 20 million for the 2020 Olympic Games in the Asian country. Japan is currently in 33rd place in the ranking of tourist destinations and is overtaken by Hong Kong, Macau and South Korea. However, the contribution of tourism to the economy is becoming increasingly important in a country suffering from an aging population and will see its population drop by 10 million in 2030.
