Low yen makes Japan the No 1 destination for Hongkongers

Thanks to further yen depreciation and more tax exemptions, Japan is again Hongkongers' number one destination in Asia to see the changing seasons.

As winter approaches, locals are seeking out cooler North Asian destinations to see the maple leaves turn red. And in a close competition between Japan and South Korea, travellers who love shopping are choosing Japan this year as the yen remains weak.

"Over the past few weeks, Japan has been the most popular choice for tours to Asian destinations. It should be a growth of 5 to 10 per cent from the same period last year," Simon Ma Sai-man, Wing On Travel deputy general manager, said.

The exchange rate of the yen against the US dollar slipped to its lowest since December 2007 on Monday. The decline led to feverish demand to exchange yen, driving the currency up by about 0.5 per cent yesterday - the biggest gain in the past three weeks, Bloomberg reported. The rate of the yen to the Hong Kong dollar was about 0.068 in the city yesterday - 6 per cent lower than three months ago.

The increase in hotel and transport costs made group tours costlier. A five-day tour to Tokyo and Mount Fuji costs HK$5,799, several hundred Hong Kong dollars more than last year.

"But for those who shop a lot, they don't mind the slight increase in tour fees as they gain more from the weaker yen," Ma said. "The launch of budget airline Vanilla Air also means cheap packages are available."

Also important to shoppers is broader tax exemption measures for tourists.