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As Japan opens its doors to visitors this week after more than two years of pandemic lockdown, hopes for a tourism boom face difficult headwinds amid lockdowns and shortages of hospitality workers.
Starting Tuesday, Japan will reinstate visa waiver in dozens of countries, ending some of the world’s strictest border controls to curb the spread of COVID-19. Prime Minister Fumio Kishida is counting on tourism to help revitalize the economy and capitalize on the falling yen. to its lowest point in 24 years.
Arata Sawa is among those who need the return of foreign tourists, who in the past accounted for up to 90% of visitors to his classic inn.
“I hope and anticipate that many foreigners will come to Japan, just like before COVID,” Sawa, third-generation owner of Sawanoya Ryokan in Tokyo.
Just over half a million visitors have come to Japan in 2022, up from a record 31. 8 million in 2019. The government had a goal of $40 million in 2020 synchronized with the Summer Olympics until both were affected by the coronavirus.
Kishida said last week that the government aims to attract five trillion yen ($34. 5 billion) in annual tourism spending. But that purpose would possibly be too ambitious for a sector that has stunted the pandemic. Hotel employment fell 22% between 2019 and 2021, according to government data.
Foreign guest spending will reach just 2. 1 trillion yen through 2023 and will not exceed pre-COVID grades until 2025, Nomura Research Institute economist Takahide Kiuchi wrote in a report.
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Japan Airlines Co has noticed that its incoming bookings have tripled since the border easing was announced, President Yuji Akasaka said last week, according to the Nikkei newspaper. Even so, demand from foreigners probably won’t fully recover until around 2025, he added.
Dead City
Narita Airport, Japan’s largest foreign airport, some 70 kilometers from Tokyo, remains eerily quiet, with about 260 of its 260 airports and restaurants closed.
“It’s like a ghost town,” said Maria Satherley, 70, from New Zealand, pointing to the exit of Terminal 1.
Satherley, whose son lives on the northern island of Hokkaido, said she would like to return to her granddaughter this winter, but probably wouldn’t because the girl is too young to be vaccinated, a prerequisite for tourists entering Japan.
“We’re going to wait until next year,” he said.
Amina Collection Co has closed its third souvenir in Narita and will most likely not reopen until next spring, President Sawato Shindo said.
The company reassigned airport staff and materials to other locations in its chain of 120 stores across Japan while refocusing on domestic tourism during the pandemic.
“I don’t think there will be a sudden return to the pre-pandemic situation,” Shindo said. “The restrictions remain tight compared to other countries. “
Japan strongly advises others to wear masks indoors and avoid speaking loudly. On Friday, the Cabinet approved adjustments to hotel regulations so they can turn away visitors who fail to comply with infection controls during an outbreak.
Many service employees have discovered better jobs and wages in other fields over the past two years, so it can be tricky to attract them, said a representative of tourism companies who asked to be identified.
“The hotel industry is very notorious for its low wages, so if the government sees tourism as a key industry, monetary subsidies are probably needed,” he added.
The Japanese government is launching an indoor initiative this month that grants discounts on transportation and accommodation, similar to its Go To Travel crusade in 2020 that was halted following a surge in COVID infections.
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