Market Trends of Japan Travel Retail Industry
Rising International Tourist Arrivals to Japan is Driving the Market
The majority of international visitors in Japan arrive from East Asian regions, with Korean, Chinese, and Taiwanese visitors in the lead. The increased number of tourists in the country has led to increased infrastructure development in the travel-retail markets, such as larger retail experiences, which include shops, restaurants, bars, and other forms of retail.
The growing number of inbound visitors and the steadily increasing tourism expenditure showed the rising popularity of Japan as a travel destination and tapped into the potential of the vibrant industry.
Growing Number of Tax-Free Shops in Japan is Driving the Market
The travel retail market in Japan is majorly driven by the tourism industry, as many foreign investors visit the country for tax-free shopping. Japan is filled with stores offering tax-free shopping, from airports to chain shops around the country. Duty-free shops in the country are in airports and major cities, where the shoppers meet certain requirements and can be excluded from paying the standard 10% consumer tax on goods in Japan.
The number of tax-free shops in Japan has increased more than tenfold in the last few years as the expansion of the number of tax-free shops was one of the major incentives devised by the government of Japan to attract international tourists.
