[Youth Report] "Not Jeju, but Osaka"... Impact of Yen Depreciation and Weakening NO Japan Movement

Sharp Increase in Korean Tourists Visiting Japan
Japanese Media: "Impact of Low-Cost Airfares and Weak Yen"
'No Japan' Movement from 3 Years Ago Fades

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With the reopening of international travel routes that were blocked due to COVID-19, the travel craze to Japan continues. This is in stark contrast to the past when the 'No Japan' movement swept through due to Japan's export restrictions. The background of this phenomenon is attributed to several factors, including the yen depreciation (weak yen) making Japanese prices relatively cheaper and a more positive perception of Japan compared to the past.

4 out of 10 Japanese Tourists are Koreans

[Image source=Pixabay]

Recently, the flow of Korean tourists visiting Japan has been nonstop. In particular, it was found that 4 out of 10 foreigners who visited Japan last month were Koreans.

According to data released by the Japan National Tourism Organization (JNTO), 1,475,300 foreigners visited Japan in February, an 88.2-fold increase compared to the same period last year. Among them, 568,600 were Koreans, accounting for 38.5% of all foreigners. Compared to 913 visitors in February last year, this is an increase of about 622 times.

This is believed to be due to the pent-up travel demand exploding after Japan eased COVID-19 quarantine measures in October last year, as well as the advantage of cheaper travel expenses due to the weak yen, which has increased the preference for traveling to Japan.

Airfare Rising from 10,000 KRW to 100,000 KRW... Soaring Jeju Airfares

It is also related to the more positive perception among people in their 20s and 30s. The Federation of Korean Industries surveyed 626 young people aged 20-30 about their perceptions of Korea-Japan relations, revealing that 42.3% of respondents had a positive view, 17.4% negative, and 40.3% neutral.

Jung (28), an office worker who traveled to Japan during the Samiljeol holiday, said, "I was frustrated not being able to travel abroad during COVID-19, but I had some free time and went to nearby Japan. I have been to Jeju Island often, and since the cost difference between Japan and Jeju seemed minimal, I chose Japan."

In fact, airfares to and from Jeju have risen sharply recently. This is because airlines have reduced domestic flights significantly by reallocating domestic aircraft to international routes in preparation for increased overseas travel demand. As a result, it has become difficult to book tickets, naturally driving up airfare. During COVID-19, one-way special fares between Gimpo and Jeju had dropped to the 10,000 KRW range, but recently they have soared to 100,000-150,000 KRW.

Korean Tourists Increase Significantly... "No Benefit to Japanese Tourism Industry"

[Image source=Pixabay]

The Japanese media is also paying attention to the Korean travel craze to Japan. The Japanese edition of Newsweek published an article on the 24th of last month titled "Surge in Korean Visitors to Japan... Attitudes Changing from 'No Matter How Cheap, I Won't Go to Japan'... What's the Reason?" to analyze the factors behind the popularity of travel to Japan.

The media cited reasons for the increase in Korean visitors to Japan as ▲cheap airfare prices ▲decline in Jeju tourism ▲yen depreciation, analyzing that "amid weakened negative sentiment toward Japan, the cost and safety advantages are leading more Koreans to visit Japan."

Newsweek also mentioned that the weakening of the 'No Japan' movement is one of the factors fueling the tourism boom in Japan. The 'No Japan' movement was a consumer boycott movement in South Korea that arose in 2019 when former Prime Minister Shinzo Abe imposed export restrictions and removed South Korea from the whitelist of favored trading partners.

During the height of the 'No Japan' movement, domestic sales of the Japanese fashion company Uniqlo dropped by about half, and imports of Japanese beer also plummeted. However, over time, domestic consumer interest in the boycott waned, and with the onset of the COVID-19 pandemic, the movement became virtually ineffective.

However, the media predicted that even with the increase in Korean visitors, it is unlikely to lead to a boom in the Japanese tourism industry. The reason is that Koreans tend to spend less than visitors from other countries.

Newsweek pointed out, "Foreign tourists arriving at Tokyo Narita Airport usually take dedicated trains such as the 'Narita Express' or 'Keisei Skyliner' to the city center, and at Osaka Kansai Airport, they use 'Limited Express Haruka' or 'Rapi:t,' but most Koreans take cheaper regular trains," adding, "In 2018, when Korea-Japan travel exchanges reached 10 million, Koreans were the lowest spenders among foreign visitors to Japan."

It continued, "In the second half of 2019, when the 'No Japan' movement was strong, the biggest damage was suffered by Korean travel agencies and airlines rather than Japan," and predicted, "The benefits from the increase and resumption of Korean visitors to Japan will mainly go to Korean companies, and the benefits for the Japanese side will be limited."