Individual tourist expenditures in Japan during the inbound tourism boom period (2015–2017): Empirical evidence from micro survey data

Abstract

This study empirically examines the characteristics of demand generated by inbound tourism (inbound demand) in Japan in the 2010s using individual data from the Consumption Trend Survey for Foreigners Visiting Japan. This is the first study to investigate the detailed characteristics of inbound consumption during Japan's inbound boom period using individual micro survey data. One of the main findings is that household income and the exchange rate significantly affect inbound demand. This is especially true for inbound demand by visitors from Asian countries, whose main purpose for visiting Japan is shopping. Another main finding is that visa relaxation effectively increases the number of tourists from China. The third finding is that the payment environment in Japan, including the use of credit cards, has a significant impact on inbound demand. These findings provide an in‐depth insight into inbound demand as a potential engine for future economic growth in Japan.