Yen for a cheap trip to Japan could cost more
Travel agents say increase in cost of hotels and transportation will absorb exchange rate gains
Although the yen has dropped to a six-year low against the dollar, Hongkongers will find it is actually more expensive to visit Japan this autumn.
The exchange rate of yen to Hong Kong dollar, at 100 yen to HK$7.27 last night, was about 4 per cent lower than a month ago. But the difference isn't enough to compensate for the rising costs if rooms, transportation and other travel expenses, tour agencies said.
Wing On Travel deputy general manager Simon Ma Sai-man said that group tours to Japan would be 5 to 10 per cent more expensive than last year.
"Hong Kong tourists wanting to see red maple leaves have to compete with locals for hotel rooms," he said.
"The depreciation of the yen makes Japanese people reluctant to travel abroad. As they increase domestic travel, their demand for hotels pushes up the room rates."
Apart from Japanese nationals, the competition also comes from other Asian travellers.
The number of Thais and Malaysians going to Japan has surged since the relaxation of visa application procedures, which allows visa-free access to visitors holding passports with embedded microchips.
