Major Japanese travel agency JTB says that fewer people in the country are likely to take trips over the upcoming spring holiday period.
The downbeat prediction comes as soaring prices prompt many households to tighten their purse strings.
JTB based its forecast on a survey, hotel reservations and other data.
It says about 23.5 million people will be traveling domestically or abroad on a trip involving at least one overnight stay between April 25 and May 7. That is down 6.9 percent from the same period last year.
Close to 23 million people are planning domestic trips, 7.2 percent fewer year-on-year. Meanwhile, the number of tourists opting for overseas destination is up 10 percent to 550,000. But the number of outbound travelers is still only about half that in 2019, before the coronavirus pandemic.
Hoshino Takuya, an economist at Daiichi Life Research Institute said: “When prices remain high for an extended period, people can’t save as much. That cools personal consumption including the desire to go away on holiday.”
He added that concerns over the impact on wages and employment of the Trump administration’s tariff policies are also depressing consumer sentiment.
JTB says the dates the springtime public holidays fall on this year are also less conducive to taking a long vacation.
The travel agency notes that people are increasingly trying to avoid peak seasons, as major tourist spots are crowded with Japanese and foreign visitors.
AloJapan.com