Japanese Tourism Industry Recovering Faster Than Expected

Japan's tourism industry has rebounded stronger and faster than expected from the catastrophic Tohoku earthquake and tsunami that took place there last year, according to the World Travel & Tourism Council (WTTC), which has released its third of four quarterly reports about Japan's post-disaster recovery.

The report, "The Tohoku Pacific Earthquake and Tsunami: Impact on Travel & Tourism - Update December 2011," found that domestic and outbound tourism is now back to pre-earthquake levels, and that inbound tourism is "well on the way to recovery."

In its first report, released in May 2011, WTTC set three possible recovery scenarios, suggesting that the earthquake and tsunami's overall damage could range from $11.5 billion on the low end to $24.4 billion on the high end. Last week's report puts the total negative impact at $8.9 billion, most of which will be confined to 2011—and well below WTTC's best-case scenario.

Based on the above numbers, WTTC predicts that outbound Japanese travel and tourism will have recovered by the end of 2011, thanks in large part to the speedy restoration of basic infrastructure immediately after the earthquake and the ongoing appreciation of the Japanese yen. Inbound travel, it suggests, will recover by early 2012, although recovery from long-haul destinations—in particular, Europe—may take longer.

"Nine months after the devastating earthquake and tsunami which hit northeast Japan, the country's tourism industry has exceeded even the most optimistic forecasts and is well on the way to recovery," said WTTC President and CEO David Scowsill. "Japan has been doing a great job in particular with marketing efforts both internally and externally and has reminded the world of the unique products Japan has to offer. However, there is still some work to be done in attracting previous levels of international visitors, particularly from long-haul markets where there may be residual nervousness regarding the nuclear situation and where economic strife continues."

In support of Japan, WTTC is hosting its 12th Global Summit in Sendai and Tokyo April 16-19, 2012. During the meeting, Scowsill said, it plans to showcase Japan's recovery and "bring world travel and tourism leaders together to demonstrate that Japan really is open for business."