How the secular growth of Japan's tourist market is impacting its economy

The number of foreign tourists travelling to Japan has been growing strongly for four years now and shows no signs of abating, writes Fidelity's Nicholas Price.

Indeed, the number of visitors reached a record 19.7 million in 2015 and total spending increased by 72% to ¥3.5trn. To provide some context, the value of tourist spending in Japan is now comparable to some third-ranking export sectors such as auto and electronic parts, and is boosting the profits of strong domestic brands. The government's strategy to promote tourism (for example, through the easing of visa restrictions and the expansion of duty-free shopping), combined with rising income levels across Asia and the increased capacity of low cost carriers and cruise ships are key driv...