Ernst & Young Japan (EY Japan)’s Strategy and Consulting group has released an insightful new report titled What does high value-added tourism generate?
Specifically done to analyse high value-added travelers’ trends whilst considering their influence on the local and national economies, the report aims to identify areas in which to create new markets or industries when local communities address high value-added tourism involving different players.
EY Japan strategic impact unit partner Tomotaka Hirabayashi remarked at the release of the report on how high-value tourism has also been instrumental in the current overtourism issue affecting several areas of the country.
Hirabayashi said: “The quality of tourism must be maintained, and the government has a policy to make tourism higher value. We seek to review our findings again on what is high value-added tourism and ask what is the essence of that.”
How does Japan define “high-value travellers”
According to the Japan National Tourism Organization (JNTO), high-value travellers are those who spend at least one million yen per trip into the country.
That said, credit card payment data from 2019, the last year before the pandemic, shows that at least 120,000 high value-added travellers made their way to Japan every year.
Data shows that the average amount spent per traveler was 60,000 yen, but it played between 1.52 and 6.3 million yen among these high-value travelers who spent up to three million yen during their travels.
Hirabayashi pointed out that it is important to encourage international travelers to spend money for local items or experiences to generate economic benefits, and high-value travellers are willing to pay premium prices for them.
The Japan Tourism Agency likewise explains that their definition of high-value travellers is anyone who prefers to enrich their in-country experience through cultural, historical, or ecological immersion as opposed to simply spending more money than most.
Hirabayashi further remarked: “We also noted two major trends among high-value travellers, namely a greater focus on personal wellness and a deeper interest in traditional crafts, history, and culture. Both of these are strengths in many Japanese regions.”
The EY Japan report also showed the extent of the potential that high-value travellers would have on the local economy.
According to Hirabayashi: “It is important that local communities consider why high-value travellers want to visit their areas, and how they could use the reasons to their advantage in order to create truly memorable and meaningful experiences.”
