Japan’s successful wooing of Chinese tourists may be too much of a good thing

Mainland Chinese make up by far the biggest group of tourists in Japan, boosting the economy but also bringing overcrowding and cultural discomfort
Such economic reliance also runs the risk of being weaponised in a political stand-off. Diversification is the wiser bet for Japan’s tourism policy

Rupakjyoti Borah

Published: 11:00am, 10 Feb 2020

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The number of tourists from mainland China visiting Japan has steadily increased over the years. This is good news for Japan and its economy but also carries risks. Amid the novel coronavirus outbreak, Tokyo will have to address this key question: Are the record numbers of Chinese tourists too much of an economic (and maybe a political) risk for Tokyo?

In 2018, around 8.38 million mainland Chinese tourists visited Japan and spent big – more than 1.5 trillion yen (US$13.7 billion), close to 34 per cent of all spending by foreign tourists.

Last year, mainland China remained the top source of tourists, with arrivals rising by 14.5 per cent to 9.59 million, out of a total of 31.9 million, according to the Japan National Tourism Organisation. This was followed by South Korea (5.58 million), Taiwan (4.89 million), Hong Kong (2.29 million), the United States (1.72 million) and Thailand (1.32 million).

As tourism across Asia takes a hit from the novel coronavirus epidemic, countries are beginning to realise that depending too heavily on tourists from any particular country or region is fraught with risks. Taiwan and South Korea realised this the hard way when political tensions with Beijing hit tourist numbers.

Last July, China banned solo travel to Taiwan ahead of the re-election of President Tsai Ing-wen; in 2016, the number of mainland Chinese tourists plunged after her election. Both were seen as signs that Beijing was unhappy with developments in Taiwan. In 2017, South Korea angered China by installing a missile defence system and also saw Chinese tourist numbers decline.

In Japan’s case, there are other risks involved.

Some areas in Japan are increasingly dependent on Chinese tourists, especially in the rural hinterland, as younger people move to Tokyo and other cities. Chinese tourism brings economic benefits to these areas in the short term but poses risks in the long term.

Then, there is medical tourism from China, which is becoming another important source of revenue, but which is also straining the availability of medical services for Japanese patients. There have been language issues. There have also been cases where Chinese – and other – tourists without travel insurance have required emergency medical attention, running up huge bills without the means to pay.

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In some cities such as ancient Kyoto, there has been a blowback from residents, who complain about overcrowding on buses and a shortage of lodging facilities. And then there are issues with ill-mannered tourists who are out of sync with Japanese culture and mannerisms. Another flip side is that property prices have gone up in many parts of the country.

Japan’s model of overdependence on Chinese tourists may not be sustainable in the long run.

Tokyo needs to diversify its sources of tourist arrivals. Southeast Asia and countries such as India could be attractive propositions, given their growing middle classes and income levels. Russia could be another interesting proposition. The countries of the Middle East could also be looked at, besides Europe, Australia and New Zealand.

Japanese soft power runs deep and Tokyo should be able to encash it. The same Chinese tourists spending heavily in Japan could also be used as a weapon in case of renewed political tensions between China and Japan, such as over the Senkakus, which China calls the Diaoyu Islands.

While Tokyo wants 40 million tourists this year and 60 million by 2030, the moot question is whether Japan, the Japanese populace and the Japanese system are adequately prepared for such a huge increase in the tourists. At present, the huge numbers of Chinese tourists in Japan seem to be a classic case of too much of a good thing.

As Tokyo gears up for the summer Olympics later this year, the outbreak of the novel coronavirus presents a reality check for Tokyo’s plans to expand the tourism market. After all, it is not wise to put all your eggs in one basket.

Dr Rupakjyoti Borah is a senior research fellow with the Japan Forum for Strategic Studies. His books include The Elephant and the Samurai: Why Japan Can Trust India, and Act-East via the Northeast: How India's Northeast is Strengthening the Kizuna (Bond) Between India, Japan and Asean. The views expressed in this article are the author’s own

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