Japanese tourism numbers in Thailand threatened by weak yen and slow Japan flight reintroduction
In light of Japan’s hesitant return to tourism and a faltering yen, Thailand’s Tourism Authority (TAT) admitted there may be difficulty in meeting the year’s target of 850,000 Japanese arrivals. The figure reflects 50% of the Japanese tourism figures reported in 2019, considered an optimistic scenario by the Tokyo office director of TAT, Kajorndet Apichartrakul.
As enclosed by Kajorndet, the sluggish revival of Japan’s outbound tourism industry has been attributed to their currency’s weakened position against the baht, currently averaging at 100 yen per 24 baht, a significant drop from a prior rate of 30 baht. The consequent financial strain on potential travellers is further exacerbated by Japan’s national encouragement for domestic travel as a more cost-effective means, impacting Japanese tourism in Thailand.
Another key factor slowing down the recovery of Japan’s tourism rates is the lagging reintroduction of flights between Thailand and Japan, which is at present only 30 to 40% of the volume recorded in 2019. The director highlights that elevated flight costs remain an obstacle, yet expresses cautious optimism for improvement within the year as flight schedules are adjusted.
Anticipated changes include Thai Airways’ reintroduction of direct flights to Hokkaido in August, potentially raising this coordination of flights to 50% of 2019 figures. Coupled with the Japanese government’s recent elimination of Covid-19 vaccination proof as a prerequisite for international travel and a slashed passport application fee, these shifts could potentially stimulate travel interest among the Japanese population, reported Bangkok Post.
However, Yoshida Masahiro, a member of the Association of Thai Travel Agents, points out that the inherent uncertainty brought on by the Covid situation, which has Japanese citizens maintaining safety measures such as mask-wearing, is a considerable barrier to international travel.
The resilience of Thai tourism, having successfully rebounded from significant challenges like severe flooding, political unrest, and a major airport siege in Bangkok, is tested in this context. The speed of Japan’s return to Thai tourism has been notably slower than other markets. Masahiro warns of the significant impact potential large-scale political demonstrations could have on the Japanese market.
Despite these Japanese tourism concerns, the first half of the year had over 300,000 Japanese visitors travelling to Thailand. Masahiro acknowledges signalling a robust economy and strong business confidence, Japan’s Nikkei stock index’s recent 33 year high could mean an influx of high-spending business groups from Japan to Thailand in the foreseeable future.
