The World Travel and Tourism Council’s (WTTC) economic impact research for 2023 reveals that Japan’s travel and tourism sector’s GDP contribution is projected to reach $285.5 billion this year. This estimate is just 6.8 percent shy of the pre-pandemic peak of $306.5 billion from 2019.
Despite the lingering impacts of the pandemic, the WTTC forecasts that the sector will generate around 470,000 jobs this year, increasing the total to nearly 5.6 million. This suggests that one in every 12 workers in Japan is employed, directly or indirectly, in the travel and tourism sector.
Though the sector is approximately 300,000 jobs short of pre-pandemic levels, by year-end, it is anticipated to be just 5.2 percent below 2019 levels. Furthermore, spending by international visitors in Japan is predicted to surge by 553.4 percent this year to $16.8 billion, though this is still 57.6 percent below the peak seen in 2019.
Reflecting on the sector’s performance in 2022, the WTTC reported a growth of 50.5 percent, exceeding $257 billion and accounting for 6.2 percent of the Japanese economy. Meanwhile, international visitor spending in Japan decreased by more than 31 percent due to prolonged travel restrictions, remaining a substantial 93.5 percent below 2019 levels. On the other hand, domestic visitor spending increased by 61.6 percent, nearly matching the levels of 2019.
Julia Simpson, the WTTC’s president and CEO, said, “Travel and tourism is a significant driver of economic growth and job creation in Japan. The economic ripple effect of this sector is remarkable.” She highlighted the necessity of nurturing and supporting the sector through innovation and by enhancing the appeal and comfort of travel for visitors.
Looking to the future, the WTTC predicts that by 2033, the GDP contribution from the sector will grow to $353.4 billion, accounting for nearly 8 percent of the Japanese economy, and employing 6.7 million people. This would mean that one in every 10 Japanese residents would be working in the sector.
In 2022, the Asia-Pacific travel and tourism sector added $1.6 trillion to the regional economy, which is still 50 percent behind the peak seen in 2019. However, the WTTC projects that the region’s GDP contribution from the sector will exceed $2.6 trillion in 2023, which would be only 16 percent shy of the 2019 highpoint. Furthermore, the council forecasts that the sector will recover all the jobs lost during the pandemic by the end of 2024 or the start of 2025.
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