Japan welcomed a record number of visitors in December, official data showed on Wednesday, closing out a year of rapid recovery from the Covid-19 pandemic.
The number of foreign visitors for business and leisure rose to 2.73 million last month from 2.44 million in November, data from the Japan National Tourism Organization (JNTO) showed.
It was the highest-ever number of tourists for the month of December and about 8 per cent higher than the pre-pandemic level seen in 2019.
For the full-year 2023, a little more than 25 million visitors arrived in Japan, the agency said.
Tourism to Japan all but halted for more than two years during the pandemic as the country put up some of the world’s strictest border controls. But arrivals bounced back quickly after the government resumed visa-free travel for many countries in October 2022.
Arrivals exceeded 2 million every month since June last year, boosted by a weakening in the yen that makes Japan cheaper compared to other destinations.
Visitors this year are likely to break 2019’s record of 31.9 million, but tourist spending last year may have already reached the government’s goal of 5 trillion yen ( USD33.81 billion), said Teppei Kawanishi, general manager at travel industry consultancy mov Honichi Lab.
Average spending per visitor is about 30 per cent higher than before the pandemic, driven in part by repeat travellers from Taiwan, Hong Kong, and other parts of Asia, Kawanishi said.
“Spending levels are very high nowadays,” he added.
The number of passengers on domestic and international routes exceeded 100 million in 2023, accounting for 81.5 per cent of 123 million recorded in 2019 before the pandemic hit the airline industry, Yonhap News Agency reported citing data from the Ministry. Of international routes, increased travel demand to Japan, Europe and the US helped offset lackluster demand to China last year, the data showed.
December saw record arrivals for any single month among people from Hong Kong, Singapore, and Australia, the JNTO said. That is helping to compensate for a slow recovery in visitors from mainland China, who made up nearly a third of all visitors and 40 per cent of all tourist spending in Japan in 2019. The number of Chinese travellers in December was still 56 per cent below pre-pandemic levels.
Inbound tourism has become a key part of Japan’s economic recovery, but a severe shortage of workers is hobbling the sector’s ability to keep up with demand.
“The industry cannot cope,” said Wanping Aw, managing director of boutique travel agency TokudAw that specialises in private car tours of Japan. “Experienced personnel are burnt out and overworked and have no time to train staff.”
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After completing one year of operations and getting 20 aircraft in its fleet, Akasa Air, has obtained approval from the Union Civil Aviation Ministry to commence international flights. The airline, currently grappling with pilot crisis and operational scare, is now eyeing destinations in South Asia, Southeast Asia, and the Middle East for its international foray by the end of this year.
Akasa Air’s CEO Vinay Dube in a statement, revealed that the Aviation Ministry has designated the airline as an international scheduled operator. He stated, “This new designation will allow us to fly internationally, enabling us to take one step closer to our dream of launching international operations before the end of this year. We are now working with all relevant authorities on our request for traffic rights and will soon be able to announce the international destination we will fly to.”
Akasa Air is setting its sights on destinations within the range of a Boeing 737 MAX aircraft from India, targeting regions in South Asia, Southeast Asia, and the Middle East. Dube also indicated that the airline is on course to announce an order for a three-digit number of aircraft by the end of this year to meet the growing demand for air travel.
To ensure the reliability of its operations, Akasa Air has made the strategic decision to fly fewer routes domestically and temporarily sacrifice market share due to ongoing pilot shortage issues. This situation arose after a group of pilots left the airline without serving their mandatory contractual notice period, causing disruptions and last-minute flight cancellations.
For example, under this interline arrangement, passengers can book an itinerary from Lucknow to Delhi to Sharjah under a single PNR. They will receive boarding passes for both the Lucknow to Delhi and Delhi to Sharjah legs at the outset in Lucknow. However, it’s essential to note that customs and immigration procedures must be completed at Delhi, while baggage can be checked through to the final destination.
According to data from the Directorate General of Civil Aviation (DGCA), Akasa’s market share declined from 5.2 per cent in July to 4.2 per cent in August 2023. The airline cancelled 600 flights in August, with the possibility of up to 700 more cancellations in September if pilot resignations persist.Akasa Air has initiated legal action against the pilots who left the airline without fulfilling their mandatory notice period. The airline has also approached the Delhi High Court, seeking DGCA’s intervention to take action against these pilots.
The airline in the court has described its current situation as a “state of crisis” due to the resignations and warned that further departures could even lead to a shutdown. It is also seeking significant compensation from the departing pilots for revenue losses incurred due to flight cancellations.
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