Tax Free Sales Drop Amid Tourist Retreat

Yurika Yoneda from Nikkei:

For the January-June first half, tax-free sales totaled 285.7 billion yen, down 14.6%.

Some of the declines may have been exaggerated by a drop in tourism from Hong Kong and other mainly Chinese-speaking countries due to rumors of an imminent earthquake, which turned out to be groundless.

But industry officials caution that the slowdown may not be temporary and are redoubling their efforts to attract foreign shoppers amid global economic headwinds. Economists warn that the impact of Trump's tariffs -- on Friday the baseline 10% rate is set to go up -- will further raise consumer anxiety around the world.

Putting the Hong Kong earthquake hoax to one side, this is an example of actions having consequences. There is a slow anti-tourist movement growing in Japan and this is a natural and obvious result.

While I do understand the dislike of some tourist behavior and overcrowding, one also has to factor in the benefits of it, not just monetary but also in boosting Japan’s soft power. If the anti-tourism sentiment continues and increases, Japanese may have a quieter and less crowded country, but also a weaker and poorer one as well.