While the risk of a decline in inbound visitors due to the escalating situation in Iran is currently considered limited, worsening Japan-China relations have also been cited as a factor. Analysis of trends by nationality is considered important.
The inbound tourism market is said to be on a recovery trend, although the total number of visitors to Japan remains in the process of recovering. However, because destinations and spending patterns vary by region and nationality, some have pointed out that detailed analysis of individual trends is needed to accurately assess the overall impact.
Preferences for goods and spending levels are said to differ significantly by nationality and region, and changes in international conditions could affect spending at some commercial facilities. At the same time, accommodation demand is readily supported by visitors to Japan from other countries and Japanese travelers, and the overall impact on the hotel industry is considered small.
The prevailing assessment is that the impact of the situation in Iran on visitor numbers to Japan is currently limited, as overseas travelers from Asia are expected to generate substitute demand due to travel restraint to Europe, the United States and the Middle East, while visitors from Europe, the United States and Australia have high travel budgets and low price sensitivity. The current analysis assumes a deeper examination of data by nationality.
Overall, risks to the inbound tourism market are considered limited, but it is important to continue monitoring trends by country and region, as the scale of the impact may change depending on developments going forward.