Japan Tourism:

https://mainichi.jp/english/articles/20200211/p2a/00m/0na/005000c

Article:

An outbreak of pneumonia caused by the new coronavirus has dealt a serious blow to Japan's tourism industry. As Chinese group tours have been banned, many large-scale trips to Japan have been canceled one after another.

Comment:

After years of promoting the Japan tourism industry, just one incident, can set it back for who knows how long.

The tourism industry in any country is susceptible to many different variables that can have a negative affect.

Article: 

For the Japanese tourism industry, the Chinese New Year holiday period that begins in late January is usually the busiest season when tourism-related businesses see large numbers of Chinese visiting Japan. However, at least 400,000 Chinese nationals will have canceled their trips to Japan by the end of March, according to industry sources.

Comment:

When the virus crisis decreases and or ends, the key question is how long before those same numbers return to Japan?

And how long before the Japanese government, after the danger has decreased or completely eliminated begins to allow Chinese tourists back into Japan?

Article:

In the central Japan prefecture of Shizuoka where over 90,000 people canceled their reservations for accommodation between January and March, many inn and hotel operators have expressed fears that the spread of the coronavirus will seriously affect their revenue. Tourism-related businesses in Yamanashi, also in central Japan, Nara, western Japan, and other prefectures where the ratios of Chinese people to all tourists staying at accommodation facilities are high have suffered a sharp decline in the number of visitors.

Comment:

Yes I am sure many hotels everywhere, where large numbers of Chinese tourists might go are very worried now, as many of them have depended on Chinese tourism for a while now.

The same can be said for South Korea, too where many businesses and hotels depend on Chinese tourists.

Article:

While a group infection of the coronavirus aboard a cruise ship at anchor off Yokohama, south of Tokyo, was confirmed, visits by cash-cow cruise ships to Kyushu in southwestern Japan and the southernmost prefecture of Okinawa have also been canceled, causing sales at commercial facilities in these areas to halve.

Comment:

It seems the cruise ship industry has been hit extremely hard. Not just in Japan, but there was also an cruise ship in Italy that also had problems.

The Yokohama situation seems to be getting worse not better. Not to think the Japanese medical professionals and such are not doing their best, but how much being stuck in a closed environment with other potential cases, might cause even more cases. Just an idea to think about?

Article:

The number of visitors to Japan from overseas has been on the rise in recent years against the backdrop of the declining value of the yen and the easing of requirements for obtaining tourist visas, hitting a record high of 31.88 million in 2019. Chinese people account for the largest percentage -- over 30% of that figure.

Comment:

The Chinese tourists at over 30%, whatever over 30% means, 31, 35, 39 etc. is a large number, but there are still maybe 60/65% of tourists not coming from China.

The problem is Japan maybe is to close to China, as some tourists not from China might think and also begin to also not go to Japan, for fear of the virus.

Of course, the South Korea situation this past summer had already reduced some South Korean tourists to Japan.

Article:

Chinese visitors spent a total of nearly 1.8 trillion yen on accommodation and souvenirs last year, serving as the driving force behind the Japanese government's strategy for increasing inbound tourists as part of the "Abenomics" economic policy mix promoted by the government of Prime Minister Shinzo Abe.

 The number of visitors from South Korea sharply decreased in 2019 because of diplomatic friction between Tokyo and Seoul over the issue of compensation for South Koreans who were forced to work in Japan during World War II. However, the decrease was offset by a sharp rise in the number of Chinese visitors.

Comment:

It seemed like a good strategy to increase tourism in Japan, especially as the middle class Chinese were gaining more disposable income that they wanted to spend, and also wanted to travel around the world. Japan being close, a neighbor, and with Japan providing for easier tourist and visa immigration policies, it was very good move to increase the Japanese economy.

But as with all things, just one variable or situation, can change things quickly, such as the situation with South Korea in the summer of 2019.,

Article:

Local governments have put efforts into the revitalization of regional areas by encouraging Chinese and other inbound tourists to visit their areas. However, concerns remain that the number of visitors from overseas tends to be affected by economic conditions abroad and outbreaks of infectious diseases.

Comment:

As from above, a lot of effort was/is being put into realizing how much the Chinese middle and upper classes want to spend and travel, but again just one situation, such as the virus can change things very quickly.

Other external variables/situation, such as the South Korea situation can also have an affect on tourism.

However, I think as research/statistics has shown, the Tokyo and Osaka areas, were not affected too much by the South Korea situation. Just the other destinations seemed to be affected the most.

Article:

Small and medium-sized businesses, which can face financial trouble if the number of visitors decreases, are playing a leading role in local tourism industries. Since such a risk has come to the surface, it is essential to extend assistance to these businesses to help them tide over the difficulties they face.

Comment:

Overall, despite the large companies in Japan, that is always in the news, the bulk of the Japanese economy is the small and medium-sized business. Like Germany, Japan has a very good and well balanced mix of small, medium, and large companies.

Its without a doubt the small and medium sized businesses were getting the most from the increased tourism. And its not surprising and sad, they are feeling the most affect from the virus situation.

Yes the Japanese government needs to step and provide some kind of assistance to the small and medium sized business that are affected by the virus situation. Provide some real and meaningful assistance to the businesses.

Article:

The central government is expected to work out emergency measures under which public financial institutions will extend assistance to cash-strapped tourism-related companies by the end of this week. To ease anxiety in regional areas, it is necessary to implement detailed measures to prevent infections and advise businesses on how to deal with their customers.

Comment:

This would be very good. But the question is, how much assistance are they going to provide and even more when are they going to provide.

And also for how long. How long will businesses be in danger if this virus situation continues and how much and how long will the Japanese government provide assistance, are questions to be looked at and watched carefully.

Article:

Concerns have also been raised about the possibility that many other foreigners will refrain from visiting Japan for fear of possible infections. The government should swiftly disseminate accurate information in foreign languages about those who have been infected with the coronavirus, quarantine procedures and treatment. The Abe government, which is striving to transform Japan into a tourism-oriented country, has a responsibility to implement effective countermeasures against the outbreak of pneumonia caused by the virus.

Comment:

Yes, that seems to be the question now, especially as the Tokyo 2020 Olympics gets closer.
Japan needs to show that Japan is not a major virus infected country and that is managing and controlling the situation. If not the Tokyo 2020 Olympics could be a major challenge for Japan.


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