Japan’s Travel Restrictions Stifle Tourism Recovery in the Face of Yen Weakness

By Rocky Swift and Maki Shiraki

TOKYO (Reuters) – Japan further eased border controls against infections on Wednesday, but its insistence on guest visas means the yen’s drop is unlikely to translate into a tourism boom anytime soon.

The government raised the limit for incoming travelers from 20,000 to 50,000 and removed the requirement that both visitors and returning citizens undergo COVID-19 tests before departure, easing what has been one of the border measures more restrictive among the major economies.

Travel bookings have increased since the easing announced last month, but a genuine recovery will be delayed as long as visitors still want to download visas to enter the country, said Koji Masumura, director of Japan Airlines Co.

“Although the number has been higher than another 50,000 people this time, I assume it will not succeed at this point without the participation of individual foreign travelers,” Masumura said.

The yen has depreciated in recent weeks, topping 144 against the U. S. dollar on Wednesday, the weakest in 24 years.

Although concerned about the currency’s “unilateral movements,” Chief Cabinet Secretary Hirokazu Matsuno told reporters that the currency’s weakness could have benefits as border controls are relaxed.

However, those benefits will not be known if visitors enter. Prime Minister Fumio Kishida pledged to align Japan more with the other Group of Seven countries, but easing has been too slow for many companies.

Japan officially welcomed tourists in June for the first time in two years, but only about 8,000 arrived through July, up from more than 80,000 visitors a day before the pandemic.

Tourists deserve to register with authorized Japanese travel agencies before applying for a visa at embassies and consulates, where obtaining a reservation can take months, according to travel industry sources.

Masakazu Tokura, president of the tough business lobby keidanren, said Monday that easing border measures is not enough. Foreign chambers of commerce said the lack of eligibility for the visa waiver for business travelers and tourists endangers Japan’s economy.

“We are grateful for the weakness of the yen, but foreign tourists still need to download visas,” said a spokesman for the Japan Travel Agents Association. “We would like to see them take a step to calm the situation. “

Before the pandemic, Japan had visa waiver agreements with only about 70 countries, in addition to all the countries of the European Union, the United States, and many Asian neighbors.

(Reporting via Rocky Swift and Maki Shiraki; Editing via Raju Gopalakrishnan)

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