The country is facing tensions from rising prices and an increase in tourists as the value of the Japanese yen falls to levels approaching those of the last major economic recession in 1990, The Guardian reported.
Reuters reported that the Japanese yen had fallen to 160 yen to the dollar, encouraging more American tourists to enter the country in particular. The economic situation, combined with the Japanese government’s decision to lift all COVID-19-related entry restrictions in April 2023, has led to a significant increase in tourism.
According to Reuters, there were 676,400 flights from the United States to Japan in 2019, but that number is expected to reach 916,500 by 2024.
The rise in tourism has also led to news of disrespectful behaviour. In late May, a video showing a person violently ringing a shrine bell went viral, upsetting many Japanese viewers.
Kyoto, a popular tourist city known for its geisha and maiko performers, also recently installed new signs warning that trespassers will be fined from late May, The Straits Times reported.
The Independent reported that Kyoto city initially banned female performers from entering the alleys where they live in March after tourists were harassing them and asking to take photos of them as they emerged from the buildings dressed in flamboyant traditional Japanese costumes.
For Japanese consumers, a weaker currency also means higher food and travel costs both at home and abroad, according to the Asahi Shimbun.
A trip to Taiwan that cost a family 300,000 yen before the pandemic has now risen to 450,000 yen, one Japanese traveller told The Asahi Shimbun.
Economist Takahiro Yamaguchi told CNBC that Japan is importing food from overseas to lower the prices of domestic products, but imported beef is becoming more expensive than domestically produced Wagyu beef. Inflation in the international supply chain is also contributing to the widening gap, he said.
Yamaguchi also noted that companies are struggling because wages rose during spring labor union negotiations. On average, salaries rose 5.28 percent to a 33-year high, according to The Japan Times.
Amid the turmoil, Japan appointed Atsushi Mimura as its new monetary governor in a routine reshuffle, according to Reuters. He begins his term on July 31, but it remains unclear how he will tackle the economic crisis.
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