Japan is a tourism giant, but with global conflicts affecting travel routes and costs, they are not immune to the impacts those changes have on their tourism industry. The surface numbers are still looking good, but the underlying data shows that the tides are turning.
In Hida-Takayama, one of those postcard-perfect destinations close to the Japanese Alps, hotel owners this year have been experiencing a sudden influx of cancellations, including approximately 4,000 from late February to early March; the majority of these cancellations were made by European visitors.
This is a big deal because Hida-Takayama is not just another tourist spot, but rather a place where people can experience the traditional way of life, enjoy scenic mountain views, and visit the nearby UNESCO World Heritage site of Shirakawa-go. European visitors also love to experience the feeling of being in “old Japan.” As a result, the cancellation of these travellers has created a significant hole in the available tourism revenue for Hida-Takayama and the surrounding areas.
The challenges associated with air travel due to COVID-19 and the number of air routes that are being disrupted, changed or having dramatically increased fares are impacting the travel plans of individuals as they are making a decision about whether to travel to a particular destination. People naturally start rethinking travel plans when it becomes difficult or very expensive to do so.
Many flights from Europe to Japan fly through the Middle East as a normal course of business, but airlines had to change routes because of ongoing conflict there, which means that there are now fewer available flights between Europe and Japan than before. When there are fewer flights, naturally demand for available flights will rise and thus the price will also be higher than before.
Travelers are hesitant to book their trips, particularly long-distance travelers who need to make their reservations well in advance of travel. Local travelers can book flights much closer to departure and simply wait until there are enough hotel rooms available before booking a flight. Because of this long-distance travelers are not as likely to make reservations for hotels.
This all happened just after Japan had a record-breaking number of visitors from around the world, so it creates this very ironic juxtaposition between the increase in both numbers of visitors and uncertainty at the same time.
Rising cost of oil is part of the overall equation because it affects the cost of fuel being used by the airlines; therefore it increases their pricing for airfares. Additionally, when airfares for long-distance flights become so high that most travelers drop those trips as part of their plans.
Another factor that cushions the blow to Japan’s tourism industry from all of these changes is that a large number of visitors to Japan come from Asia, including such countries as South Korea, China, Taiwan, and Hong Kong, which will help!
There’s a possibility that Japan could draw in those travelers who are shifting away from their original destination. Travellers from outside of Japan (particularly US/European) may choose Japan instead of travelling to conflict-affected areas due to it being a more stable and safe environment.
In addition, visitors travelling from China have not returned to previous levels due to ongoing geopolitical tensions between China and Japan creating an additional layer of complexity. Again, this is not one issue, but rather a convergence of international politics and economics coupled with shifts in the way people travel.
Tourism has a direct connection with global events, and even though Japan is consistently one of the premier travel destinations in the world, it too will experience adjustment as a result of global influences.
