Impact of Strengthened Yen on Korean Tourism in Japan

As Japan grapples with overtourism, there is a possibility of a notable decline in the number of Korean tourists visiting the country due to the rising strength of the yen.

Financial analysts have remarked that as the yen appreciates, it may deter South Koreans from opting for vacations in Japan, which have surged previously due to a weaker yen and pent-up demand following the pandemic.

The Korea Tourism Organization (KTO) indicated that out of 28.69 million Korean travelers abroad in 2024, 8.82 million visited Japan. This figure was 26.7% higher compared to 2023, surpassing visits to other destinations like China and the United States.

An Unexpected Outcome

While a reduction in Korean tourists could alleviate the overtourism issues in Japan, South Korea might gain an unexpected advantage. The strengthened yen may lead Korean travelers to explore their own country more, thereby supporting local tourism and reducing the long-standing travel deficit that has affected South Korea for over twenty-five years. The nation witnessed a travel balance shortfall of USD 12.5 billion last year, which could be positively impacted.

Conclusion

The shifting economic landscape presents both challenges for Japan’s tourism industry and potential benefits for South Korea, reshaping travel dynamics in the region.