The Japanese yen has fallen to a seven year low against the Korean won, fueling the Japan craze among Chinese tourists at the expense of arrivals to Korea.
Up to 2.41 million Chinese visited Japan last year, an 83.3% y-o-y increase. In January and February there were 99.2% more Chinese visitors than in 2014 and Chinese expenditure during the Spring Festival reached RMB6 billion.
Although Korea had more Chinese visitors than Japan last year, with 6.13 million arrivals, Chinese visitors' expenditure declined overall. Lotte Department Stores made record sales (26% of total sales) but individual spending was down y-o-y from 650,000 won last year to 560,000 won this Spring Festival. The figure was 38% lower than the 90,000 won average in 2013.
The Japanese government’s devaluation of the yen, relaxation of visa restrictions, expansion of the scope of duty free products and aggressive competition for Chinese tourists make competition with Korea inevitable.
An observer said: “The Korean government must address the issue of the devalued yen chipping away at Korea’s advantage as a shopping destination.”
Japan has also trumped Korea in its bilateral tourism numbers. The number of Japanese visiting Korea in March fell for the 31st consecutive month and 2.28 million Japanese visited Korea in last year, down 17% y-o-y.
On the other hand, 2.7 million Koreans visited Japan last year setting a seven-year record.(Translation by David）
