Japan faces rising prices and tensions around increased tourism as the Japanese yen’s value crumbles to rates approaching its last major economic decline in 1990, The Guardian reports.
The Japanese Yen has fallen to 160 yen per 1 U.S. dollar, prompting American tourists in particular to enter the country, Reuters wrote. The economic situation, paired with the Japanese government’s decision to lift all COVID–19–related border restrictions in April 2023, has significantly boosted tourism.
In 2019, 676,400 flights were tracked from the U.S. to Japan, compared to 916,500 flights in 2024, according to Reuters.
With the increase in tourism, cases of disrespect have also made news. In late May, one viral video depicted an individual aggressively clanging the bell at a shrine, to the dismay of many Japanese viewers.
Kyoto, a popular city for tourists known for its unique presence of geisha and maiko, also recently implemented new signage aimed at tourists threatening to charge fines for trespassing as of late May, The Strait Times wrote.
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The Independent reported that Kyoto initially banned access to alleys where the women performers reside in March, citing tourists harassing them for pictures as they exit buildings in ornate traditional Japanese garb.
For Japanese consumers, the weaker currency also means higher food and travel costs — both domestic and abroad, The Asahi Shimbun reported.
A trip to Taiwan that used to run one family 300,000 yen before the pandemic was now evaluated at 450,000 yen, one Japanese traveler told The Asahi Shimbun.
Norihiro Yamaguchi, an economist, told CNBC that Japan imports food from abroad to lower the costs of domestic products, but imported beef is now more expensive than locally sourced Wagyu beef. He said inflation in international supply chains also contributed to increasing discrepancies.
Yamaguchi also pointed out that companies are struggling after union negotiations in the spring boosted wages. On average, salaries saw an average increase of 5.28 percent — a 33-year high, according to The Japan Times.
Amid the chaos, Japan has appointed Atsushi Mimura as its new currency chief in a routine exchange of duties, according to Reuters. His approach to the economic crisis is yet to be seen, as he begins his term on July 31.
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