More American tourists say 'konnichiwa' as battered yen beckons

Hoshino Resorts Reit

01/07/2024 18:11

By Aishwarya Jain
       July 1  (Reuters) - American tourists headed for Japan
have surged this year, lured by a slump in the value of the yen,
which is also driving a massive jump in foreign investor
interest in the country's lodgings market.
    The number of Americans arriving in Japan by air crossed
more than 900,000 in the first five months of 2024, climbing
17.4% year-over-year and vaulting 35.5% from 2019 before the
pandemic, the International Trade Administration data showed. 
    While pent-up travel demand since the end of the pandemic
has also contributed, the Japanese currency's recent plunge to a
38-year low to the U.S. dollar has been a key factor, as it
boosts the spending power of American tourists. 
    Since the end of the pandemic, demand has been booming
across the Asia-Pacific, drawing in travelers from China, as
well as long-haul visitors from North America with more
Americans opting to travel internationally.
    "The weakened yen compared to the U.S. dollar makes the
entire travel experience more affordable for American tourists,"
said Tim Hentschel, CEO of travel bookings platform
HotelPlanner.
    Foreign investments in the Japanese hotel industry have also
seen a sharp spike.
    Cross-border investments in the industry came in at $1.38
billion in the first half of this year, up 19.2% from the same
period of 2023, and 176.3% compared to the first half of 2019,
according to MSCI data. 
    Several U.S.-based hotels such as Marriott  MAR.O , Hilton
 HLT.N , Hyatt  H.N  and Choice  CHH.N  have been expanding
their footprint in Japan by partnering with local real estate
and hospitality companies. 
    "When someone who doesn't know much about Japan visits the
country for the first time, they might be more inclined to book
with a familiar name," said Wanping Aw, a travel agent in Tokyo.
 
    Short-term rentals giant Airbnb  ABNB.O  reported a 130%
increase in nights booked by American guests in Japan in 2023
from a year earlier.
    Airlines are also moving in tandem with this trend, adding
more seats between the U.S. and Japan. 
    Carriers scheduled about 1.5 million seats between the two
countries in June, July and August, a 9% increase from a year
earlier, according to data in May from online travel agency
Hopper.
    United Airlines  UAL.O , Delta Air Lines  DAL.N  and
American Airlines Group  AAL.O  have increased scheduled seat
capacity between the U.S. and Japan for the summer by 19%, 10%
and 7%, respectively, Hopper data showed. 
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
U.S. citizen departures to Japan via air from January-May by
year    https://reut.rs/3zkKER5
Foreign investments in the Japanese hotel industry in the first
half of each year    https://reut.rs/4cDj7bR
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Aishwarya Jain in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Aishwarya.Jain@thomsonreuters.com;))