Kyoto's Mixed Tourist Impact Amidst Yen Decline

As the yen continues to weaken, Kyoto finds itself navigating the complex dynamics of its tourism landscape, balancing the influx of foreign visitors against the concerns of its residents. The city's renowned attractions, once bustling with international travelers, are now grappling with the dual challenges of crowd control and the potential resurgence of COVID-19 infections.

Yasuko Fujii, a 79-year-old proprietor of a historic liquor shop in Kyoto, embodies this ambivalence. Her establishment, over 230 years old, thrived on the patronage of international tourists who flocked to Japan's ancient capital prior to the pandemic, indulging in quality whisky and wine. However, her feelings are mixed, reflecting a broader local sentiment.

The community's hesitation towards embracing large groups of tourists stems from fears of renewed COVID-19 spikes. Nevertheless, the depreciation of the yen presents an enticing opportunity to attract visitors back to local businesses, which are eager for a rebound.

"From a business standpoint, we want foreign tourists to come," Fujii explains. "But from an emotional perspective, we wish for customers from Japan." The previous two years of restrictions saw millions of tourists from East Asia and Southeast Asia frequenting the Nishiki market, and the absence of these crowds has had a profound impact on the local economy.

Kyoto's picturesque streets, lined with tea houses and traditional inns known as ryokan, have seen both relief from the absence of foreign tourists and challenges for local businesses. With the yen at its lowest in over twenty years, expectations for a surge of tourists upon the reopening of Japan's borders have not yet materialized, casting uncertainty on the recovery of the tourism sector.

While the weak yen has made a round trip from Tokyo to Kyoto by bullet train more affordable for visitors, the Japanese government faces repercussions through rising fuel and electricity costs associated with this economic trend. As the situation develops, many local shops remain hopeful for an influx of tourism without overwhelming their capacity to provide quality service.

Kaoru Kimura, operating a fresh fish shop in Nishiki market since 1620, expresses her desire for a return of tourists, but stipulates the need for moderation. With fond memories of previous years when guests left tokens of gratitude like foreign trinkets, Kimura emphasizes that hospitality should not be compromised by overwhelming numbers.

The local hospitality industry has been hit particularly hard, with records indicating a five-year high in hotel closures nationwide as of 2021. A report from Teikoku Databank highlighted the significant damage sustained by Kyoto's tourism infrastructure, illustrating how businesses, including rental kimono outlets dependent on foreign visitors, continue to struggle.

Once vibrant with tourist activity, local businesses now face grim prospects. Hiroshi Fujie, director of an antiques store established four decades ago, laments the empty parking lots where fleets of buses used to deliver travelers to iconic sites like Daitokuji Temple. Without foreign visitors, he fears for the survival of his store.

According to government statistics, the visitor count to accommodations in Kyoto fell dramatically, with roughly 5.17 million guests in the last year, predominantly Japanese. This stark comparison to 13.2 million in 2019 reflects the challenges the city continues to confront as it seeks to revitalize its economy amid an evolving global travel landscape.