News On Japan

Niche businesses pop up to cash in on Japan's tourism boom

Aug 26, 2019 (Nikkei) - From kimono rentals to luggage storage apps to language training, Japan's long tourism boom is giving rise to a growing number of niche businesses that cater to the needs of overseas visitors.

Japan has welcomed record numbers of tourists in recent years and their spending is increasingly important to the economy. Although there has been a drop-off as some South Koreans stay home due to a political quarrel with Japan, other visitors are likely to keep coming as the 2020 Tokyo Olympics draw near.

There is also a growing change in consumption patterns, as more tourists come to Japan looking for unique experiences, rather than for shopping. Companies that offer such experiences are flourishing.

"Our overseas customers have increased by at least 10 times over the past two years," said Toshiaki Itaya, media relations manager at Tokyo-based camper rental service Campingcar.

Most customers were Japanese when the business opened in 2015, but there were 80 reservations by foreign tourists in 2018, up from just nine in 2017. This year, as of mid-August, 140 reservations from overseas visitors have come in. Customers hail from all over and run the gamut from young couples in their 30s to groups in their 60s.

Campers are gaining popularity, thanks to the flexibility they offer travelers. The rental fee is 18,360 yen ($172) per day on weekdays, meaning a seven to 10 day trip costs 200,000 to 300,000 yen. That comes to about 10,000 yen per day if split among three people.

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