A weaker yen is expected to drive more Hong Kong residents to Japan, tourism industry experts have stated. This follows a record number of foreign tourists visiting Japan last year.
Retail industry representatives have noted that the growing trend of Hong Kong residents traveling abroad has negatively impacted local consumption. However, they believe this effect will be softened by the expected rise in mainland Chinese visitors, as multiple-entry visas for Shenzhen residents have been reinstated.
Steve Huen Kwok-chuen, executive director of EGL Tours, a travel agency, explained that the weak yen makes shopping and dining in Japan more affordable, attracting more Hong Kong tourists. Additionally, the increasing number of flights between Hong Kong and Japan has made travel more accessible.
Huen predicted that Japan will continue to be a top destination for Hongkongers in 2024. He also mentioned that his agency’s cherry blossom tours for March and April had already drawn many sign-ups.
According to the Japan National Tourism Organization (JNTO), Japan saw nearly 36.9 million foreign visitors in 2024, surpassing the previous record of 32 million in 2019. This increase is a significant jump from 2023, which saw around 25 million visitors.
The rise in tourism has been largely attributed to the yen’s sharp decline, which reached its lowest point against the US dollar in over 30 years in 2024. Of the foreign visitors to Japan, around 2.7 million were from Hong Kong, making it the fifth-largest group after South Korea, mainland China, Taiwan, and the United States. This marks an increase from 2.1 million visitors in 2023 and 2.3 million in 2019, prior to the pandemic.
Huen also highlighted Japan’s new attractions, such as the World Expo in Osaka, scheduled for April to October 2025, as another reason for the growing influx of tourists. He expects the number of Hong Kong visitors to Japan to rise by 10 percent this year, potentially reaching 3 million.
Professor Terence Chong Tai-leung, executive director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, commented that while the yen has reached a historically low level, it is likely to fluctuate. However, even a slight increase in the yen’s value is unlikely to discourage Hong Kong residents from traveling to Japan.
In the retail sector, lawmaker Peter Shiu Ka-fai expressed concern over the impact of the outbound travel trend on local consumption. However, he pointed out that the resumption of the multiple-entry visa scheme for mainland Chinese visitors would help balance the situation. He believes that large-scale events in Hong Kong, combined with the return of mainland tourists, will boost local retail spending.
The multiple-entry visa scheme for Shenzhen residents, suspended for nine years, was reintroduced last month. According to mainland Chinese authorities, Shenzhen residents have already made 1.04 million trips to Hong Kong since the scheme’s restart, marking a 22.3 percent year-on-year increase.
Lam Chi-chung, general officer of the Hong Kong Department Stores and Commercial Staff General Union, explained that the city’s retail downturn is not solely due to travel to Japan, but also because many residents are visiting mainland China. However, he remains optimistic about a recovery in the retail sector this year, driven by the resumption of the visa scheme and an anticipated economic boost from major events like the arrival of giant pandas.
Lam called on retailers to adopt innovative strategies and for the government to develop more tourist attractions to help stimulate local spending, despite the continued trend of outbound travel by Hong Kong residents.
In November, Hong Kong’s retail sales fell for the ninth consecutive month, dropping by 7.3 percent year-on-year, with the total value of retail sales amounting to HK$31.7 billion (US$4.1 billion).
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