Travelers from abroad spent roughly as much in Japan last year as the country exports in automotive or electronic parts, with growth so impressive that some wonder how long it can last.Japan came close to reaching a government goal of 20 million annual foreign visitors by 2020. An estimated 19.7 million foreigners visited in 2015, 47% more than the year before, the Japan National Tourism Organization reported Tuesday.Visitors from mainland China, among the most prolific spenders, more than doubled in number to just shy of 5 million. South Koreans increased by 45% to 4 million, while Taiwanese rose 40% to 3.67 million.Westerners also came in droves. The number of American visitors increased 16%, topping 1 million for the first time.Inbound tourism has become a valuable economic support. Foreign visitors spent a whopping 3.47 trillion yen ($29.5 billion) in Japan last year, an all-time high and a gain of 70% over 2014. By comparison, the country exports an annual 3.6 trillion yen worth of microchips and other electronic components and 3.4 trillion yen of autoparts.In Tokyo and other metropolises that foreigners are wont to tour, department stores and other retailers are getting a welcome boost to sales. The same goes for theme parks. Universal Studios Japan, located in Osaka, is expected to welcome nearly 14 million guests in fiscal 2015, at least a tenth of them foreign. Chinese and South Korean visitors have increased noticeably.Even smaller cities, such as Himeji, home to one of the country's most picturesque castles, are enjoying the increased bustle that inbound tourists bring. Some 235,000 foreigners visited the white-walled fortress from last April to December, far more than the 83,000 that came in the preceding 12 months. The neighboring mountain town of Kamikawa, with a population of roughly 12,000, is holding a winter festival this year featuring snow cat rides and other activities that have proven popular with Taiwanese tourists.
The tourism boom has inspired unlikely business alliances. Karaoke parlor operator Shidax and electronics retailer Bic Camera have collaborated on a tourist-oriented hybrid location in Tokyo. It features a first-floor shopping area offering digital cameras, over-the-counter drugs and other products, with rooms for singing on upper floors. Open since last December, the new format is attracting far more foreign visitors than before, particularly after 9 p.m, according to a spokesperson, who says 60% are Asian.
Tourist money has had a visible impact on some companies' earnings. Shiseido, the purveyor of such cosmetics brands as MAQuillAGE and Cle de Peau Beaute, attributed a nearly 20 billion yen revenue boost in the year ended Dec. 31 -- two-thirds of its domestic sales growth -- to tourist spending.
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