Skip to content

Weekday Japan business intelligence for finance professionals.

Join the list
Tokyo Brief東 京 ブ リ ー フJapan's day, wrapped and delivered by morning.

Article

Japan's visitor numbers fell 5% in September, yet third-quarter spending set a record

Foreign visitors spent a third-quarter record of about ¥2.2tn between July and September, up 3.2%, though September arrivals fell 5%; from November, consumption tax will be charged at the sale and refunded once export is confirmed at the airport.

By Tokyo Brief DeskOct 26, 20263 min read
Illustration of an airport departure area with shopping bags, luggage and a self-service kiosk, alongside a chart with one line falling and one rising.

Japan welcomed fewer foreign visitors in September but took more money from them over the summer quarter. Japan Tourism Agency commissioner Kimura told his 21 October press conference that September arrivals were about 3.10 million, down 5% on the same month a year earlier. Spending for July to September rose 3.2% to about ¥2.2tn, a record for a third quarter.

Arrivals: down in September, down slightly for the year

Of 23 countries and regions tracked, seven set September records and 16 fell, according to the commissioner. For January to September, arrivals totalled about 30.73 million, 2.9% fewer than a year earlier. September was the second year running in which the 30 million mark was passed.

China is the drag. September arrivals from China were about 430,000, down 44.5%, and the January–September total is down roughly 55%. The September fall was the smallest since last December, but the commissioner declined to call it a recovery: last year's Mid-Autumn Festival holiday fell in October, this year's in September. He also said the agency could not yet comment on China's National Day holiday, pending October figures.

Asked about the overall decline, the commissioner said the cause could not be pinned down. He listed fewer flights from some countries, a shift in holiday dates and higher fuel surcharges as the main factors cited, and urged readers to watch longer-term trends. He said it was too early to make a year-end forecast.

Spending: higher in the quarter, and per head

The quarterly figure is a first preliminary estimate. Spending per visitor rose 6.1% year on year to about ¥234,000, also a third-quarter record. The commissioner also said the agency's rule of thumb, that the wider economic ripple effect runs at about twice travel spending, implies roughly ¥4.4tn for the quarter. That is an estimate built on his multiplier.

For shops, the agency's breakdown shows shopping second at 27.7% of inbound spending, up from 25.7% a year earlier, behind lodging at 35.2% and ahead of food and drink at 22.9%. Earlier Tokyo Brief coverage

The November refund switch

From November, consumption tax on goods sold to foreign tourists will be charged at the point of sale and refunded after export is confirmed at the airport. The commissioner said the change responds to long-standing evidence and suspicion that duty-free purchases are resold or consumed in Japan instead of being taken abroad. The source does not give a November start date.

Procedures at shops will change. The agency says it is working to avoid any hit to shopping spending, and the commissioner reported these preparations:

  • Briefings for duty-free retailers by the agency.
  • Retailer systems that industry bodies say are on schedule.
  • Kiosk terminals at airports, where customs offices and airport operators are making what he described as steady installation preparations.
  • Notices to travellers aimed at limiting congestion at departure.

The preparation status is the commissioner's account of what industry groups and other bodies have told him; the source includes no figures on how many shops are ready.