This is what post-pandemic visitors in Japan are buying

Sales of cosmetics and medications have decreased in Japan during the pandemic, a reflection of the country’s shifting visitor demographics as more Europeans and Chinese nationals remain at home. In contrast, traditional crafts and jewelry are becoming more and more popular among post-pandemic tourists.

According to the Japan Tourism Agency, the average amount spent by visitors on traditional handicrafts was ¥13,338 ($92) during the July-September quarter, an 80% increase over the same time in 2019. This continued a trend that began in early 2023. Cosmetics sales decreased by 30% over the same period.

2019 saw busloads of tourists from China emptying shelves, a frequent sight for drugstores and merchants, but inbound tourism has been one of the few bright spots in Japan’s erratic economic recovery. Even while trips to the archipelago are now more inexpensive due to the lower yen, the decline of mainland spenders is another indication of the deteriorating economy there.

Daniel Forrester, a visitor from New York, remarked, “I wanted something Japanese and found this store on the internet,” as he spent ¥90,000 for a lacquered box at Traditional Crafts Aoyama Square. “I’m going to keep pens in my office using this.”

The manager of the business, Kazuhiko Asakawa, says that duty-free sales from April through October are up around 20% from pre-pandemic levels. Handcrafted goods such as pottery and iron kettles are arranged on shelves that accommodate between 7,000 and 8,000 pieces. “Since the end of 2022, we’ve seen an increase in visitors from countries like Mexico, Brazil, and Poland,” he added.

As of right now, 10% of all visitors are Chinese, down from 30% in 2019. This information comes from the Japan National Tourism Organization. In the meanwhile, there have been more visitors from the US, Canada, Germany, and other nations.

The shifting tourist demographics are driving growth in some product categories. Duty-free sales at Ito-ya Ltd., a venerable Ginza store that sells pens, notebooks, and other stationery, have more than doubled from before the outbreak. According to manager Atsushi Fujiki, social media is how a lot of clients find the business. He said, “We seem to be turning into a destination.”

Ito-ya was crowded with customers, including Sinduja Venkat, who was just visiting from India with her family, browsing for pens, sketchbooks, and other things. She said, “I want to buy stationery for my kids to use at school.”

The UN World Tourism Organization reports that while tourism-related expenditure has increased, Japan continues to trail behind other nations in the area in terms of overall spending per visitor, with $2,411 recorded in 2022. This is in contrast to Hong Kong’s $5,524 per visitor and Australia’s $6,526 per visitor, which tops the list.

As far as entertainment and services go, Japan is falling behind other nations, according to Tokyo Woman’s Christian University professor Noriko Yagasaki. Demand for guides who can accompany visitors is greater than the availability of labor, according to her.

According to Yagasaki, increasing tourist spending may be achieved by emphasizing experiences rather than merely products.

There’s also the belief that more tourism will boost economic activity even if spending stays low. However, considering the industry’s workforce scarcity, it presents another challenge. According to a Teikoku Databank poll conducted in October, the manpower shortfall in the Japanese inn and hotel industry is at an all-time high.

“The quantity of guests is significant, but it might get out of control,” Yagasaki said. “In the upcoming years, there is a need to concentrate on raising the caliber of services.”