Travel to Japan, driven by record low yen, demand for exchange into Japanese yen is increasing
The exchange rate is historically low against the yen.
Take this opportunity to exchange your money into Japanese yen and save money on your trip to Japan.
Acceptance of foreign tourists in Japan has resumed.
Everyone in the world, please come and visit Japan.
The following information is from the Nihon Keizai Shimbun.
The weak yen is stimulating Asia’s “potential inbound”.
The yen’s temporary depreciation against the U.S. dollar to a level not seen in about 20 years has become a major topic of conversation in Asian countries and regions.
In Hong Kong and Taiwan, where the Japanese are particularly popular, people have begun to buy yen because they believe they will be able to travel to Japan and enjoy spending in Japan at a discount after restrictions on travel are lifted.
Interest in asset management such as Japanese real estate, which can be acquired at a discount, is also rising.
People are flying to Japan with their hearts and minds fixed on the yen.
Exchange small amounts of money in anticipation of travel recovery
I exchanged 50,000 yen worth of money for now. I’m going to Japan later.
While they were talking, one of them snapped a picture of the electronic rate display on his smartphone.
They were comparing several shops and exchanging small amounts of money at a time.
When the reporter asked them if they thought the yen would continue to weaken, they replied, “I think it’s about to bottom out.
The two men nodded to each other and said, “You can exchange money again when the yen falls.
Expectations for tourism to Japan are the same in Taiwan.
On the 18th, the Taiwanese media outlet United News (electronic version) introduced the opinion of a well-informed person who said, “In the era of With Corona, the weak yen is not a bad thing.
It also said that the weak yen would bring about a boom in Japan’s tourism industry and emphasized the strength of the Japanese spirit, saying, “If you ask people around you where they want to travel to after Corona, I’m sure many will say Japan.
The yen has been on a downtrend against Asian currencies, and is at its lowest level against the Taiwan dollar since June 1998, when data was available from QUICK and other sources.
Against the Hong Kong dollar, the yen is at its lowest level since March 2003, when data was available.
According to a survey conducted by Yahoo Hong Kong of more than 20,000 people between March 30 and April 6, more than 47% of respondents said they would wait and see how they feel about exchanging money into yen in preparation for their trip.
However, 35% of respondents said they should exchange money if the yen weakens, far more than the 18% who said they had not decided, suggesting that many people are interested in exchanging money to secure funds for their trip to Japan.
According to data from the Japan Tourism Agency, the number of visitors to Japan from Hong Kong increased by 4% year-on-year to 2.29 million in 2007, before the new coronavirus disaster.
The number of visitors from Taiwan also increased by 3% to 4.89 million, both at record high levels.
There are also signs that larger amounts of funds have begun to move.
A Japanese woman engaged in asset management in Hong Kong revealed, “We are receiving an increasing number of inquiries from people who want to cancel their pension funds and insurance policies that they had invested in Hong Kong.
At a real estate agency in Hong Kong that specializes in Japanese properties, the words “Japan yuan new low” (the yen is at its lowest point) dance on the shop front.
There are a lot of customers. We are making up for the disadvantage of not being able to visit Japan by offering online property tours,” the clerk said confidently.
The clerk looked confident.
Inflation in COVID-19…yen investment shrinking?
However, a weak yen does not necessarily mean that people will immediately jump into travel preparations and investment.
On the 22nd, Hong Kong-based CEC International Ltd., which imports and sells Japanese food products and is easily influenced by the yen, temporarily fell 3% from the previous day to HK$0.60, the lowest level since the beginning of the year.
The company’s stock price is expected to fall to a record low of HK$0.60 per share, down 3% from the previous day.
The Corona disaster has hurt their pockets, and with fears of inflation due to the Ukraine crisis still smoldering, the funds available for investment and consumption are shrinking compared to before the Corona disaster.
The reality is that the only way to turn “potential” into “full-fledged” inbound is to wait for the day when travel restrictions are eventually eased around the world.
In the Hong Kong market, shares of EGL Holdings, a Japan-bound package tour operator, are less than 10% cheaper than at the end of 2007, before the Corona disaster. Hong Kong still requires that visitors to Hong Kong be quarantined in a hotel for at least a week, and “even if Japan’s entry is eased, it is not realistic to think about what will happen after you return to Hong Kong,” said Mr. Huang of Interest Fung Securities Co.
A Hong Kong woman in her 20s who has studied in Japan shrugged when asked if she planned to send money to the bank account she has in Japan, saying, “I don’t know when I can go to Japan”.
