IMF Japan News:

https://www.yahoo.com/news/imf-warns-coronavirus-hit-japans-160001210.html

Comments, analysis, and ideas:

This is not unexpected news or surprising news. Tourism from China has been a boom for the Japanese economy the last five or more years.

The same might be said of Korean tourists, but on a smaller scale up until the situation the past summer which reduced the number of Korean tourist to Japan. Osaka and Tokyo seemed to have the most Korean tourists, still, but other areas maybe lost a lot over the summer and fall period.

Japanese companies are most likely going to feel the affect due to global supply chains that run through China.

Plant closing and such will definitely have an affect.

And then stores/companies like Daiso, GU, Muji, and Uniqlo have most likely already have felt the affect besides the Japanese car makers.

The only bright side, if we dare to say that will all the suffering in China, is possible, like in any business situation, the car companies might begin to think of moving there manufacturing operations to other countries. But its a drastic idea, and to pull that off make take time, too much time.

How much of an affect will the loss of tourists have in Japan? That remains to be seen. Some might just label it as a normal business cycle activity, where there are always ups an downs in an economy.

But how long before this become a panic in Tokyo as the Tokyo Olympics get closer and closer?

Japan most likely can weather a one month, two month, or even three month decline in China tourists but can it weather and full blown loss related to the Tokyo Olympics.

Time will tell how long this situation will go on and how deep will the decrease in tourism be?


© 2020, Tom Metts, all rights reserved