Travel Agencies to Handle Flight and Accommodation Bookings
Prospects for Personal Travel and Visa-Free Entry
Yen-Dollar Exchange Rate Nears 143 Yen
Increased Likelihood of Visa-Free Entry for Japanese Nationals
On the 7th, the exchange rate between the Japanese yen and the US dollar was displayed on an electronic board at a foreign exchange brokerage office in Tokyo, Japan. [Image source=Yonhap News]
[Asia Economy Intern Reporter Kim Gun-chan] Japan has allowed 'guide-free package tours,' effectively enabling free travel within Japan. It is expected that individual travel for foreign tourists and visa-free entry will be permitted by October. As signs emerge that travel to Japan will reopen after two and a half years, the number of Korean tourists aiming to travel cheaply amid the weak yen is increasing.
The Japanese government has allowed foreign tourists to take 'guide-free package tours' starting from the 7th. The daily entry cap has also been raised from 20,000 to 50,000, easing entry restrictions for tourism purposes. Since June 10, Japan had only allowed package tours accompanied by guides. However, individual free travel remains impossible because authorities cannot track tourists' itineraries.
According to the Japan Association of Travel Agents (JATA), which informed the Korean travel industry on the 6th, there are no restrictions on tourists' travel schedules or routes. The only difference is that travel agencies must handle flight and accommodation bookings on behalf of tourists. This is essentially the same as the airtel (flight and accommodation only) products previously sold by travel agencies. However, during their stay in Japan, tourists and travel agencies must maintain constant contact to prepare for emergencies such as COVID-19 infection.
There are also expectations that from October, Japan will allow individual travel for foreign tourists and visa-free entry. On the 15th, Nihon Keizai Shimbun (Nikkei) reported that Prime Minister Fumio Kishida will soon announce a plan to ease entry restrictions including these measures. The exact timing of the easing will be finalized considering domestic and international COVID-19 situations. Nikkei stated, "The Japanese government hopes that by easing entry restrictions, the number of foreign visitors to Japan will increase and that their spending will bring economic benefits."
On the afternoon of the 7th, a signboard for passengers on Japanese flights was installed at the international terminal of Gimpo International Airport in Gangseo-gu, Seoul, allowing tourism in Japan even through package tours without guides. [Image source=Yonhap News]
As signs emerge that travel to Japan will reopen after the Japanese government tightened entry restrictions in March 2020 due to the spread of COVID-19, demand for travel to Japan is surging. According to Hana Tour, as of the 13th, average daily overseas travel bookings for September increased by 159.6% compared to August, with bookings for Japan increasing by 1139.4%. Major travel agencies are also resuming sales of Japan travel products such as airtel packages.
Korean tourists are responding positively to the news that travel to Japan may resume. Kim, a university student who traveled to Osaka in 2018, said, "I have been waiting because I couldn't travel abroad due to COVID-19," adding, "Japan is a place where you can travel cheaply for a short period, so I want to go again if I get the chance."
On online Japan travel communities, posts such as "I hope visa-free entry is allowed so I can go," and "I booked a flight to Japan for Christmas without going through a travel agency" are appearing.
Recently, the weak yen phenomenon makes traveling cheaper than before, which is another attractive reason for Korean tourists to visit Japan. The yen-dollar exchange rate was about 115 yen per dollar at the beginning of this year but is approaching 143 yen as of the morning of the 16th.
On the afternoon of the 10th of last month, the departure hall of Terminal 1 at Incheon International Airport was bustling with travelers. [Image source=Yonhap News]
Meanwhile, from 2001 to 2018, Japan was the most visited overseas travel destination for Koreans. About 7 million Koreans traveled to Japan annually, and about 3 million Japanese visited Korea each year. However, in 2019, Japan imposed export restrictions on semiconductor materials as retaliation for South Korea's court ruling on forced labor compensation, sparking the 'No Japan' movement in Korea. In 2020, tourism exchanges between the two countries completely ceased due to the spread of COVID-19.
If visa-free entry to Japan is allowed through this easing of entry restrictions, it is highly likely that Korea will also permit visa-free entry for Japanese nationals based on the principle of reciprocity. The Japanese government suspended the visa-free entry system for Koreans within 90 days, which had been in place since March 2020. The Korean government also banned visa-free entry for Japanese nationals based on the principle of reciprocity.
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