Effects of recent economic trends on leisure and travel consumption

Along with the continuing drop in the yen and high stock value since the end of 2012, hopes for the favorable economic situation are rising. Consumer interest for investment, expensive goods, travel and leisure became high.

Ikuyo Namigata

Ikuyo Namigata Columnist

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Further monetary easing steps by the Bank of Japan even fuels the anticipation of booming economy.

However, surging prices of daily necessaries and globally branded products and the hike in the consumption tax in April 2014 may discourage consumer spirits.

Decrease of the number of overseas travelers after Lehman’s fall, mainly due to the increase of budget-minded consumer is still fresh in our mind.

Will the demand for travel and leisure be continued during 2013?

The important points are as follows:

  • Recent survey result shows that the motivation to spend on travel in this spring is the highest in the last couple of years.
  • Although weakening yen value has not pushed down the number of overseas travelers, there may be some influence on the travel demand of the second half.
  • Last-minute demand before the hike of consumption tax is conceived to be progressed after December 2013 when many workers receive their bonus.
  • Recent consumer trend shows that people rather prefer to spend money on the experience which enhances their life rather than just spend on some goods. Therefore, the demand for travel is thought to be maintained steady undertone.