Industry contribution only 6.8% behind 2019 high
Tourism is expected to support nearly 6.7 million jobs by 2033
London, England: Japan’s travel and tourism industry is expected to contribute US$285.5 billion (37.6 trillion yen) to GDP this year, the World Travel and Tourism Council’s (WTTC) 2023 Economic Impact Study (EIR) revealed today.
The figure is just 6.8% below the pre-pandemic high of $306.5 billion (40.3 trillion yen) in 2019, with the industry likely to account for 6.8% of the economy by the end of the year.
Although the impact of the outbreak in Japan will continue until 2023, WTTC expects the industry to create about 470,000 jobs this year, reaching nearly 5.6 million. This means that about one in 12 workers in Japan is directly or indirectly employed in the tourism industry.
While employment in the industry remained below 300,000 jobs from pre-pandemic levels, it ended the year just 5.2% below 2019 levels.
Spending by international tourists in Japan is expected to soar 553.4% this year to $16.8 billion (2.2 trillion yen), still 57.6% below the 2019 peak.
review last year
The industry’s contribution to GDP rose 50.5 percent to more than $257 billion (33.9 trillion yen) last year, accounting for 6.2 percent of the economy.
By 2022, the industry will have nearly 5.1 million more jobs than the previous year, accounting for one of 13 jobs in Japan.
Spending by international tourists in Japan declined in 2022 as the impact of prolonged travel restrictions continued to weigh on the industry. International visitor spending fell by more than 31% and remained 93.5% below 2019 levels.
Spending by domestic tourists rose 61.6% last year, almost back to 2019 levels, trailing by just 0.2%.
Julia Simpson, WTTC President and CEO, said: “Tourism is an important driver of economic growth and job creation in Japan. We expect a significant boost to global tourism as residents start traveling again.
“The economic knock-on effect of this industry has been amazing. It has spurred job creation, from tour guides and hotel staff to local artisans and transport providers.
“International travel is critical to achieving the long-awaited recovery. We must nurture and support the industry, finding innovative ways to attract tourists and ensure their comfort. By doing this, we will not only boost the economy, but support livelihoods and local communities.”
Hiroyuki Takahashi, Chairman of the Board of Directors of JTB Corp., said: “Due to the extremely high and growing demand for visiting Japan from around the world, we at JTB Corp. are working with the public and private sectors to develop new tourist attractions to broaden Japan’s tourism appeal. capacity.” Capacity in rural areas.
“Adventure tourism will be a driver of innovation to address these needs and challenges.
“With a commitment to sustainability, innovation and memorable experiences, we envision a thriving future for Japan’s tourism industry.”
Isao Takashiro, Chairman and CEO of JAT, said: “Thanks to the government’s efforts and the recovery of travel demand, our domestic terminal passengers have returned to pre-pandemic levels. This remarkable recovery demonstrates the resilience of our industry .
“Despite the challenges, passenger throughput at Haneda Airport’s international terminal is expected to exceed 18 million by the end of the year. 25 million passengers.”
“As a key gateway to Japan, we remain committed to enhancing the passenger experience with new international flight facilities and attractive commercial facilities.”
In 2022, the largest source markets for Japanese international tourists are South Korea (24%), Mainland China (10%), Taiwan (10%), the United States (8%) and Hong Kong (7%).
What will the next decade look like?
The global travel body predicts the industry’s contribution to GDP will rise to $353.4 billion (46.5 trillion yen) by 2033, accounting for nearly 8 percent of Japan’s economy and employing 6.7 million people nationwide, including One in ten Japanese residents work in the industry.
Asia Pacific
In 2022, Asia-Pacific tourism will contribute US$1.6 trillion to the regional economy, but this is still 50% below the peak in 2019. The WTTC forecasts that the sector’s contribution to the region’s GDP will exceed $2.6 trillion by 2023, just 16% below the 2019 high.
The industry will employ more than 155 million people in the region in 2022, up 8.7 million from the previous year but still 15% below pre-pandemic levels. WTTC predicts that by late 2024 or early 2025, the industry will fully recover the jobs lost during the pandemic.
For more information, visit wttc.org
Download the press release
Editor’s note
The research was carried out in collaboration with Oxford Economics, with information from the World Tourism Organisation, Oxford Economics and national sources. All values are at constant 2022 prices and exchange rates reported in March 2023.
The Economic Impact Study defines Asia Pacific as all countries in Asia and Oceania. Currency data for Japan are in yen. Currency data for the Asia-Pacific region is in US dollars.
