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Tokyo, the sacred Mount Fuji, temples and valleys: Japan is considered a worthwhile but very expensive travel destination. However, the fall in the value of the yen could make a trip affordable for many.
Japan has a reputation as an expensive vacation destination – for many, a trip to the East Asian country is a distant dream. But the Japanese national currency, the yen, has lost a lot of value, around 25 percent in the past two years. Compared to the euro, the yen is at its weakest level in 15 years. This could make a holiday in the country affordable for more people.
Tourism in Japan has recently recovered from the corona pandemic. The government pursued a strict entry policy in these years and opened the borders to self-organized travelers late, in autumn 2022. It was not until spring 2023 that the government lifted all entry restrictions again and tourists came back: in October 2023 alone, the country recorded around 2.5 million foreign visitors – more than in comparable periods before the pandemic.
In the entire year of 2023, 233,000 Germans traveled to Japan, almost as many as before the pandemic. For comparison: During the same period, around 729,163 Germans vacationed in Thailand, which has long been one of the Germans’ favorite long-distance travel destinations.
Japan as “Trend destination”
Germans’ interest in vacationing in Japan is growing, according to Aage Dünhaupt from the tourism group TUI. Japan is a “trend destination” this year and “more popular than ever”.
Bettina Kraemer from the Japanese Tourist Board sees a lot of catching up to do: “This year too, we see that demand is at a very high or even higher level than last year.” However, Kraemer cannot confirm that this interest in traveling to Japan is mainly due to the exchange rate of the yen.
According to Jörn Krausser, Asia Director at DER Touristik, the weak yen could have “certainly strengthened” the trend towards traveling to Japan. However, Japan remains a special travel destination and is still “not a bargain,” said Krausser.
The yen is losing value
The yen has been steadily losing value for about two years. The reason for the devaluation is the loose interest rate policy of the Bank of Japan (BoJ). To date, the Japanese key interest rate is -0.1 percent. After other central banks raised their key interest rates, the devaluation of the yen began.
Costs for flights have risen sharply
The flight definitely has a big impact. Prices have increased significantly in recent years. According to an analysis by the comparison portal idealo, the prices of flights from Germany to Japan have increased by an average of 42 percent compared to 2019. In March, for example, they cost between 890 and 1,650 euros from Hamburg to Tokyo, according to a sample of online search engines.
Hotel stays aren’t exactly cheap either. According to the hotel price index of the trivago portal, the average price per night for a standard double room in Tokyo is 150 euros in February 2024.
But the food is cheap in Japan. A simple noodle soup costs the equivalent of between 3.70 and 7.40 euros. According to the Japanese Tourist Office (JNTO), you pay around 25 euros in better sushi restaurants. However, as is often the case, there is no upper limit.
Price increases in long-distance transport
Local transport is also affordable – and now even cheaper due to the weak yen. The cheapest subway ticket in Tokyo costs the equivalent of just under 1.10 euros.
However, the Japan Rail Pass, which is very popular with tourists, became significantly more expensive – by almost 70 percent – at the end of last year. With the pass you can use all lines of the JR railway network and the Shinkansen bullet train nationwide. The Japan Rail Pass for seven days now costs the equivalent of over 300 euros.
VAT and customs duties
In Japan, tourists who stay in the country for less than six months can get VAT refunded on purchases. The value of the purchase usually has to be more than 5,000 yen. The refund will be made either directly in the store (recognizable by the “Tax-Free” logo) or at the airport on the same day of purchase.
However, anyone who decides to travel to Japan and bring souvenirs back to Germany should pay attention to certain regulations. When entering the country, imports remain duty-free with a value of up to 430 euros. If this value is exceeded, import duties must be paid.
More and more young people are traveling to Japan
One thing is noticeable: Japan is becoming more popular as a travel destination, especially among younger people. According to a survey by US credit card company American Express, bookings for a Japan holiday by people aged 12 to 44 increased thirteen-fold in October 2023 compared to October 2019.
Kraemer cites the consumption of Japanese media as a possible explanation for travel behavior: “The interaction of manga, anime and gaming plays a big role in bringing younger people to Japan.” By engaging with Japanese manga comics, anime and games, many young people have developed a “positive feeling” for Japan.
Japanese media has accompanied many people since childhood. This also includes games from Nintendo or series and manga such as Pokémon or Naruto. This also affects those who are no longer so young: Many children’s television series such as Heidi or Nils Holgersson are not German, but are actually Japanese anime with German dubbing.