Tourism could be Japan's new economic growth engine

Subject

Japan's tourism boom.

Significance

Depreciation of the yen has slashed travel costs for foreign visitors to Japan. However, there are longer-term structural factors driving Japan's boom in inbound tourism. Promoting the sector is integral to the Abe administration's growth strategy -- and it is the only part of the original 'third arrow' that is really on course to hit its target.

Impacts

• The already-prosperous 'golden route' (Tokyo, Kyoto, Osaka, Nagoya and Mount Fuji) will benefit most from international tourism.
• However, as the industry develops and the number of repeat visitors grows, the range of tourist spots will expand.
• Shoppers from Asia's growing middle class are a key market, which will continue to grow.