"No More Going... Surpassed by China Too" Sharp Drop in Korean Reservations for Japan Travel During May Golden Week

Japanese Travel Declines as Yen Surpasses 1,000 Won
Reservation Rankings Drop to Fifth, Overtaken by Vietnam, Europe, and Thailand
Rising Airfare and Increased Tourism Taxes Also Contribute

The soaring popularity of travel to Japan, driven by its close proximity and relatively affordable costs, has recently plummeted sharply. This is due to the Japanese yen surpassing the 1,000 won mark. Ahead of the May Golden Week holiday, travel preferences for Vietnam, Europe, and China are becoming more prominent, but new demand for Japan is slowing down amid the strong yen.

Himeji Castle, Japan. Pixabay

According to Kyowon Tour on the 10th, the number of reservations for trips to Japan departing during the early May Golden Week (May 1-6) this year decreased by 45% compared to last year. Japan ranked 5th in reservation rankings, falling behind Thailand and China. This year’s reservation rankings are Vietnam (18.7%), Europe (17.2%), Thailand (14.4%), China (11.7%), and Japan (9.3%), whereas last year they were Vietnam (24.4%), Europe (15.5%), Japan (13.1%), Thailand (12.2%), and the Philippines (5.7%).

Over the past two years, the yen’s weakness, ranging between 850 and 910 won, led to a boom in the Japanese travel market. Japan was also the top overseas travel destination chosen during this year’s Lunar New Year holiday. The number of travelers to Japan during the Lunar New Year period was 276,237, more than double the 122,778 travelers during last year’s Lunar New Year. Additionally, in January, the number of Korean entrants to Japan reached 979,042, surpassing 900,000 for the first time and setting a monthly record. This number exceeded the 912,325 Japanese travelers abroad during the same period by about 60,000, meaning more Koreans traveled to Japan than Japanese traveled worldwide.

However, the situation changed as the long-standing yen depreciation ended. The yen, which had risen to around 970 won in February, surpassed 1,000 won on the 4th of this month. The won-yen exchange rate, which had climbed to around 1,025 won on the 9th, dropped back to the 992 won range by 3 p.m. on the 10th. Since the yen depreciation had been a key factor in the popularity of Japan travel by reducing costs for airfare, accommodation, shopping, and sightseeing, demand for travel to Japan is now slowing. According to the Ministry of Justice’s monthly statistics report, the number of Korean visitors to Japan in February this year was 815,231, a 12.9% decrease compared to the previous month (935,815).

The rising airfare prices are also a burden. Recently, round-trip airfare to Japan has nearly doubled. Based on Naver Air searches for a 2-night, 3-day round trip departing April 18 and returning April 20, the price for 'Incheon~Osaka' was 366,400 won, and 'Incheon~Tokyo' started at 392,200 won, which are 58% and 44% higher, respectively, than the average lowest prices searched over the past two weeks.

Moreover, Japan has significantly increased various tourism taxes to reduce regional damage caused by 'overtourism.' The Japanese government is considering raising the current 1,000 yen departure tax to 5,000 yen and increasing entrance fees at major tourist sites. Local governments are also reviewing the introduction or increase of accommodation taxes targeting foreign visitors, further increasing the financial burden on travelers.