Japan's tourism industry gearing up for more Chinese visitors after visa change

Hotels, retailers, and the financial industry in Japan are gearing up for an influx of Chinese visitors as eased rules for granting visas to individual Chinese travelers come into effect.

On July 1, Japan eased its conditions for granting visas to individual travelers from China, making it easier for China's middle class to visit Japan. In a ceremony in the Chinese city of Shenyang the same day with members of China's travel industry, Hiroshi Mizohata, commissioner of the Japan Tourism Agency (JTA), stated: "I want many Chinese people to visit Japan."

Figures from the Japan National Tourism Organization (JNTO) and other bodies show that about 350,000 Chinese tourists visited Japan in 2000. Last year the figure rose to 1.01 million -- an increase from the previous year -- despite a decline in the overall number of foreign visitors.

In 2013, the JTA hopes to see 3.9 Chinese visitors, and has set a goal of welcoming 6 million in 2016.

During their stay in Japan, Chinese visitors spend an average of 200,000 to 300,000 yen each, meaning the overall market stands at about 200 billion to 300 billion yen a year. Even if the average income level of Chinese visitors to Japan falls as a result of the eased restrictions, with 6 million visitors a year it is possible the total contributed to the Japanese economy could rise to 1 trillion yen.

As individual spending has gone flat, Japanese companies are turning their eyes toward this expanding market. In the department store industry, where nationwide sales marked year-on-year declines for 27 straight months up until May, officials say Chinese visitors are willing to open their wallets.

"Many Chinese tourists come to buy things, and the eased visa restrictions will become a business opportunity," said Seichi Iioka, an executive director of the Japan Department Stores Association.

The Association is calling for popular perfumes to be exempted from consumption tax, and is pushing ahead with various measures to attract customers.

Meanwhile, the Prince Hotel chain has introduced measures at four hotels in Shinagawa, Tokyo -- having Chinese-speaking staff wear badges, and making Chinese-language television broadcasts available in guest rooms. At the entrances of restaurants, photographs of staff who can speak Chinese are also displayed, and the company plans to boost Chinese services in the future.

On July 1, Fuji Kyuko Co., which runs Fuji-Q Highland, an amusement park close to Mount Fuji popular among Chinese, opened its first overseas office in Shanghai, preparing to make a full-scale effort to attract Chinese visitors.

In the credit card industry, meanwhile, Mitsubishi UFJ Nicos Co. has tied up with Chinese credit card brand UnionPay, and from July 1 began soliciting stores in Japan willing to accept the UnionPay cards. Mitsubishi UFJ Nicos is aiming to secure 30,000 member stores over a period of three years, and will receive income from handling fees.

Sompo Japan Insurance Inc. will start full-scale sales of overseas travel insurance aimed at Chinese travelers as early as this year, as it expects increasing demanding from visitors to Japan. It is also considering medical insurance targeting Chinese travelers.

Sourced=mdnnews