78% of pre-pandemic levels have been reached for tourist arrivals in Japan

According to the Japan National Tourism Organization, international visitors to Japan exceeded 2 million for the second consecutive month in July, returning to levels that were 78% higher before the pandemic.

2.3 million people visited, down from 2.99 million in July 2019, the organization said on Wednesday. The positive score increases the possibility that visitor spending, encouraged by the depreciating yen, will continue to help the country’s economic recovery.

The third-largest economy in the world experienced higher-than-anticipated growth in the quarter through June as a result of an increase in net exports. That total includes expenditures for domestic travel. During that time, tourist spending returned to 95.1% of what it had been during the same period in 2019, prior to the epidemic.

Incoming expenditure is anticipated to continue to help the economy in the months to come, despite China lifting its ban on tour groups visiting Japan this month.

Visitors from China have lagged behind while arrivals from nations like the US and Australia have already surpassed 2019 levels. 313,300 Chinese citizens entered Japan in July, a 70% decrease from four years prior. Those arrival numbers are anticipated to rise sharply if the prohibition is lifted.

According to the Daiwa Institute of Research, Chinese tour groups would increase inbound expenditure this year by around 200 billion yen, or about 4.1 trillion yen ($28.2 billion).

Fumio Kishida, the prime minister, wants inbound spending to hit 5 trillion yen annually as soon as possible. That would surpass the previous record of 4.8 trillion yen set four years prior.

Foreign visitors now have more spending power because to the yen’s recent decline to a nine-month low against the dollar.