Weakened Yen Threatens Japan's Tourism Boom

Japan's tourism boom may be facing a new challenge as the yen strengthens, potentially making holidays more expensive for foreign visitors.

The country's post-pandemic tourism surge was driven in part by a weak yen, which made it easier for travelers to spend their money. The average Australian visitor to Japan has seen a roughly threefold increase over the past decade, with numbers reaching around one million annually in recent years.

However, a strengthening yen could change this calculation, making Japan less competitive compared to other Asian destinations such as Vietnam, China, and South Korea. While experts don't expect a moderate strengthening of the yen to cause travelers to abandon Japan entirely, the value gap between Japan and its competitors may narrow.