Japan's summer outbound travel to fall 9% on weak yen, 1st post-COVID drop

TOKYO (Kyodo) -- Overseas trips from Japan are expected to decrease by 8.8 percent to a cumulative 2.17 million for this year's summer holiday period, the first year-on-year decline since the post-pandemic recovery in 2023, as consumers feel the impact of the weak yen and rising costs, according to major travel agency JTB Corp. Higher costs are steering vacationers away from long-haul destinations such as North America and Australia, while domestic travel may also struggle as people become more frugal amid inflation, according to the company's projections for the July 15 to Aug. 31 period. Average overseas travel expenditure per person per trip is estimated to rise 6.3 percent to 323,000 yen ($2,000). In addition to the weak yen driving up spending abroad, higher fuel surcharges -- triggered by soaring aviation fuel prices amid the Middle East crisis -- are also adding to the burden. Nearby destinations with affordable airfares are proving popular, with South Korea topping with 26.2 percent, followed by Taiwan at 16.2 percent, according to the JTB estimates. The number of visits to China is projected to be half of last year's figure, at 10.1 percent, amid strained relations between Tokyo and Beijing over Prime Minister Sanae Takaichi's November remarks on Taiwan. Domestic trips are expected to drop 4.4 percent from the previous year to a cumulative 69 million, while average spending per person is projected to rise 3.2 percent to 48,500 yen. Eastern Japan's Kanto region, which includes Tokyo, is expected to be the most popular destination at 19.0 percent, followed by the Kinki region in western Japan at 14.9 percent and Hokkaido in the country's north at 11.2 percent. The general trend appears to indicate that people are being more selective in their spending, with a JTB official saying, "There is growing polarization between those who are cutting back on expenses -- such as by shortening the length of their vacation -- versus those who want to take the trip they desire, even if it costs more." JTB made the projections based on an online survey conducted in June among people planning trips of one night or more during the indicated summer holiday period.