✈️ “From Tourism to Settlement” ── A Shift in the Times has Become Visible. Over the past few years, against the backdrop of an explosive increase in tourists, Japan has positioned inbound tourism as the main axis of its growth strategy. In 2023, the number of foreign visitors exceeded 25 million, approaching pre-COVID levels. However, what is recently drawing attention is a new trend: not “staying,” but “relocating.” Driven by the internationalization of work styles and the spread of remote work, the number of foreigners desiring long-term stays or permanent settlement is steadily increasing. 🌍
💳 However, Immigrants Do Not Automatically Equal Economic Benefits. Unlike short-term tourism consumption, the spending of relocators is more cautious and dispersed. The reality is that while they pay for daily groceries and utility bills in Japan, many manage their living funds through overseas accounts. For instance, if the payment systems used for credit card transactions and online shopping belong to foreign companies, a portion of those profits flows out of the country. Even if they buy luxury goods, royalty fees to the brand’s headquarters are remitted overseas—such structures lurk within many transactions. As a result, there are many cases where the actual return to domestic companies is limited, despite the “flashiness of apparent consumption.”
🚨 And Another Impact: “Price Polarization.” The increase in relocators is quietly affecting the economic structure of urban areas as well. Particularly in Tokyo, Kyoto, and Fukuoka, housing demand from wealthy foreigners is rising. The average price of luxury condominiums in Tokyo has multiplied by about 1.6 over the past five years. Furthermore, “foreign-oriented pricing” is increasing in the food, service, and education sectors. As a result, a new challenge is emerging: the rising cost of living for Japanese people 😓.
📈 The Perspective Required for “Post-Inbound.” What the Japanese economy needs moving forward is to reevaluate the meaning of not just “having them visit,” but “having them live together with us.” How to welcome relocators not as “consumers,” but as “co-creators of the local community” ── that strategy will be the key determining the next phase. (To be continued)
* Reference Article: JNTO “Trends in Visitor Arrivals to Japan”
* From the Marketing Seed series. Please also read this article →Because It’s the Age of AI—Let’s Talk Human Touch (3) ~ Seeds of Marketing #60
