Slow to recover, Japanese visitor numbers regaining momentum: Executive

Taipei, Feb. 1 (CNA) Foreign visitor numbers in Taiwan have failed to rebound to pre-pandemic levels, with the expected 7.5 million to 8 million overseas visitors in 2024 well below the 11.86 million who arrived in 2019.

A 2.23 million person (86 percent) decline in Chinese visitors in the first 11 months of 2024 compared to the same period in 2019, triggered by Beijing's ban of tour group visits to Taiwan, has accounted for a sizable chunk of the fall.

But another key segment that has fallen off dramatically are the Japanese, a perhaps surprising phenomenon given the traditionally strong demand for travel to Taiwan in Japan.

Taiwan is not the only destination seeing a drop-off in Japanese visitors. The number of Japanese tourists traveling overseas has rebounded to only 67 percent of pre-COVID-19 levels, said Klook Japan General Manager Wataru Masuda.

That percentage is even lower for Taiwan, however, with Japanese visitor numbers in the first 11 months of 2024 at around 60 percent of the level seen in the same period in 2019, representing a falloff of roughly 770,000 visitors, Taiwan Tourism Administration statistics show.

Despite these numbers, Masuda said the situation has begun to turn around, with a 32 percent year-over-year increase in Japanese visitors to Taiwan in 2024 and signs that promotions are making younger Japanese more willing to visit Taiwan.

Major Culprits

For Masuda, there was little doubt about what has held back the Japanese outbound travel market. The weak Japanese yen, which has increased the cost of going abroad for Japanese residents, is the primary culprit, he said.

Another factor is that under 20 percent of Japanese have passports, somewhat ironic given that Japan was ranked as having one of the world's most powerful passports in 2024, with visa-free access to 194 of 227 global destinations.

The other consideration, Masuda said, is that members of the younger generation in particular are less likely to go abroad due to the growing social perception that overseas travel is a luxury, a perception reinforced by the high cost and low frequency of travel.

"We can't control the first factor [the exchange rate], but we hope we can take some steps to influence the younger generation on the second and third points," Masuda added.

Potential for Taiwan

To rekindle interest in Taiwan, Masuda said Klook Japan decided to appeal to the younger generation by working with influencers on travel marketing campaigns that are tied to promotional offers aimed at reducing the financial burdens of travel.

One example was the "Taiwan the Lucky Land" campaign, a lucky draw launched by the Tourism Administration that gives visitors to Taiwan the chance to win travel vouchers worth NT$5,000 (US$151).

That promotion led to over 10,000 hotel bookings by Japanese on Klook over a five-month period, Masuda said.

Another example was an exclusive discount for foreign nationals on Taiwan high-speed rail tickets in September 2024, which led to a 208 percent increase in ticket sales to Japanese tourists within two months on Klook, he said.

That resulted in a 300 percent increase in Klook's sales of Taiwan travel products in 2024, far higher than its 80 percent increase in sales of travel to the rest of the world.

"There is even more opportunity for growth in 2025," Masuda said.

Though Japanese travelers' interests before and after the pandemic have not changed much, they now seem to put a higher priority on the safety and cleanliness of the destinations they visit, Masuda said, which should make Taiwan more appealing as a destination.

Its close proximity to Japan, affordable airfares, natural scenery, tasty food, and convenient transportation were all factors Taiwan could use to appeal to Japanese tourists, Masuda contended.

South Korea, which remains the top tourist draw for Japanese travelers, has some of those same advantages, but the two destinations represent different things to Japanese, Masuda said.

"South Korea is K-pop and spicy foods while Taiwan is scenery, braised pork rice and xiaolongbao [steamed buns]," Masuda said, citing areas that Taiwan could emphasize and could keep Japanese coming back.

One other area that could rekindle a rebound, especially among younger visitors, are digital apps that Klook is planning for 2025, including one that breaks down language barriers by directly translating information on a smartphone screen.

"Language is still a major barrier for Japanese travelers," Masuda said.

Taiwan currently ranks third among Japanese tourists' preferred overseas destinations, after South Korea and the United States, with Thailand a close fourth, according to Japanese tourism statistics.