WTTC: Tourism Sector’s Contribution to Japan’s GDP Could Reach ¥40 Trillion by the End of 2023

The Travel and Tourism sector in Japan is expected to provide a strong boost next year in terms of the country’s economic recovery, thus contributing to its GDP reaching close to pre-pandemic levels, according to the World Travel & Tourism Council (WTTC).

The WTTC’s Economic Impact Report (EIR) forecast shows that the sector’s contribution to Japan’s GDP could reach nearly ¥40 trillion by the end of 2023, just 2.2 percent below 2019 levels, VisaGuide.World reports.

According to the data, employment will surpass pre-pandemic levels, recovering more than 23,000 jobs, to reach more than 5.8 million by the end of the year.

In addition, the GDP of Travel and Tourism is expected to grow by an average of 2.6 percent per year, which means more than three times the growth rate of 0.7 percent for the country’s overall economy, to reach more than ¥46.7 trillion.

The sector is also expected to create around 683,000 jobs over the next decade, an average of more than 68,000 new jobs each year, to reach more than 6.2 million employed by the end of 2032.

The report shows that by the end of this year, the sector’s contribution to GDP is expected to increase by 60 percent to more than ¥36.2 trillion, reaching 6.5 percent of total economic GDP.

“While employment levels in the sector are expected to grow at a slower rate (1.9 percent), by the end of this year, more than 5.6 million will work in the sector,” the report reveals.

In this regard, President and CEO of WTTC, Julia Simpson, said that the outlook for the future of Japan is much brighter after the pain suffered by Travel and Tourism.

“Following two years of restrictions to mobility, which damaged the sector, there are reasons for optimism as the sector is finally seeing the light at the end of the tunnel. But there is still work to be done. Removing testing and facilitating international travel will further boost the sector’s growth and fast-track the recovery,” Simpson pointed out.

Before the pandemic began, Japan’s Travel and Tourism sector’s contribution to GDP was 7.3 percent, thus falling to just 3.5 percent or ¥18.4 trillion in 2020, representing a staggering loss of 54.8 percent. 

In 2019, the sector also supported 5.8 million jobs, falling slightly below 5.3 million in 2020, when the pandemic devastated the sector.

Last year, its contribution to GDP rose 22.9 percent yearly to reach ¥22.7 trillion.

At the same time, the sector also saw a recovery of more than 210,000 jobs in Travel and Tourism, representing a positive growth of 4 percent to reach 5.5 million.