Strong yen dampens Koreans’ appetite for Japan travel

A sign for a check-in counter for Japan-bound tourists [NEWS1]

 
As the won-yen exchange rate exceeded 1,000 won per 100 yen for the first time in two years, hundreds of anxious Korean travelers took to online forums voicing their concerns about the potential end of the discounted yen era.
 
Worried about additional costs on their upcoming vacations, many of these travel enthusiasts expressed their frustration by sharing negative comments like “Japan is no longer my top choice” and “I don’t see the value in visiting Japan this year.” Some said they had to modify their plans and are considering alternative options such as China or Vietnam.
 
“Last year and earlier this year, I traveled to Japan when the rate was in the high 800s per 100 yen. Now it’s over 1,000 won, which feels like a huge difference,” an online user said in a post on Naver’s Japan Travel Club, Korea’s largest online community for Japan trips, which has almost 2 million members. “I’m thinking whether I have to change my upcoming plan to visit Japan.”
 
“I might have to spend more than I initially planned, so I’ll probably need to dip into my salary to make up for it,” a comment on the post read.
 
 
The won–yen exchange rate has fluctuated between the high 900s and 1,000 won since a significant increase on April 7, when it surpassed the 1,000 won mark for the first time in two years, contrasting sharply with last year’s range of around 800 won and the low 900s. As of 11:30 a.m. Friday, the exchange rate was 1,010.73 won per 100 yen.
 
The unusual four-digit sight in the exchange rate seems to hold back some Korean tourists from visiting Japan for their next vacations but instead choose an alternative option.
 
“I went to Osaka and Tokyo last year and I really enjoyed my trips. For this year, I had initially planned to visit Fukuoka, but I decided to travel to Dalian, China instead, since the exchange rate is rising too high,” said 28-year-old flight attendant Koo Hyun-mo.
 

Posts on Naver Japan Travel Club address concerns regarding the strengthening of the Japanese yen. [SCREEN CAPTURE]

 
Reports and statistics indicate a decline in the number of Koreans planning trips to Japan compared to previous years.
 
A report titled “Golden Week Travel Trends,” released by Kyowon Tour on March 19, revealed that new bookings for Japan packages between March 1 and 11 dropped by 51.7 percent compared to the previous month and by 16.9 percent compared to January.
 
Europe topped the list, taking up 21.4 percent of all bookings. Vietnam came in second at 16.1 percent, followed by China, which ranked third with 13.3 percent. Thailand and Taiwan followed at 12.7 percent and 7.6 percent, respectively.
 
Japan only accounted for 7.5 percent of total bookings, landing in sixth place. In Kyowon Tour’s overseas travel trend report for the fourth quarter, released in October last year, Japan was No. 1 with a 15 percent share of bookings.
 
“The appreciation of the Japanese yen, pushing the won–yen exchange rate beyond 1,000 won per 100 yen, has significantly increased travel costs, likely reducing new demand for trips to Japan,” Kyowon Tour report said regarding the impact of the rising value of the Japanese yen.
 

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The wavering public enthusiam toward Japan trips draws a stark contrast from last year’s data that indicate Japan was a top tourist option for Koreans.
 
Last year, Koreans made up about 8.82 million, or 24 percent, of the 36.87 million foreign visitors to Japan, exceeding the previous record of 7.54 million set in 2018, as reported by the Japan National Tourism Organization in its annual report.
 
“Last summer, I visited Japan when the exchange rate was approximately 871 won per 100 yen. Japan was an excellent destination for shopping and dining, but I regret to say that it may not be as enjoyable now anymore since the exchange rate is over 1,000 won,” Shin Min-sung, a 34-year-old logistician, told the Korea JoongAng Daily.
 
“When I visited Tokyo during a time when the Japanese yen was weak, I purchased a lot of snacks and cosmetic products from stores like Don Quijote, but I don’t think I can do the same anymore because the yen is too strong these days,” 31-year-old female travel lover Sang Ji-su said.
 
A foreign national who works in Korea shared a similar view.
 
“I visit Japan every year, and even compared to 2018 and 2019, everything was so affordable in Japan last year,” said Margareth Theresia, an Indonesian woman working for a Korean company. “In particular, I felt that food was very cheap, so I enjoyed a lot of delicious snacks and meals there but it won’t be the case anymore.”
 

Visitors explored the Japanese booths at the International Travel Fair in Busan, held in September last year. [YONHAP]

 
However, some expressed a contrasting view that the rising exchange rate won’t really have a significant impact on people’s decisions.
 
“It’s difficult to conclude that the increasing exchange rate is impacting the demand for trips to Japan,” Cho Il-sang, head of Hana Tour’s public relations team, told the Korea JoongAng Daily. “In fact, our company has seen an increase in demand for travel programs to Japan for the coming month.”
 
Even Kyowon Tour noted in its “Golden Week Travel Trends” report, which indicated the shaky demand for trips to Japan, that last-minute reservations could still shift rankings since bookings for Japan tend to happen closer to departure dates.
 
“Japan remains highly attractive due to its proximity, culinary experiences and shopping, so even if total travel volume drops, demand will likely remain steady,” said a spokesperson for Kyowon Tour.
 

Travelers wait in line to check in for flights bound for Japan at the Incheon International Airport on July 7, 2024. [NEWS1]

 
Some travel lovers also shared the same view saying it is barely understandable why people make “such a fuss” about the exchange rate.
 
“I went to Japan several times and actually I don’t really care about how strong the Japanese yen is now, since I just go to Japan whenever I have the time,” Cho Sung-eun, a 34-year-old worker, said. 
 
“Many people are just so swamped with work. We are waiting for a vacation, not for the exchange rate to drop.”
 
“We are not exchanging 100 million won for a trip,” the unconcerned travel enthusiast Cho added.

BY YOON SEUNG-JIN [[email protected]]