After dropping 90% for two months full recovery should be evident in 2012 says WTTC report.
A report commissioned by the WTTC says that the immediate impacts of the earthquake and tsunami on Japan"s Travel & Tourism were extremely stark as international arrivals were down 50% in March and then 62% in April.
But it is clear that Travel & Tourism demand fully recovered in late 2011, ahead of activity in the wider economy and despite recent disruptions - boosted in no small part by the strength of the yen. Travel & Tourism is clearly set to make an increasing contribution to the wider economy in 2012.
Inbound leisure tourism fell by an estimated 90% in the two months, according to the Japan Tourism Agency (JTA), with domestic travel down almost 20% over the period. The disruption to demand was felt across the country, not just in the northeastern regions that were directly affected by the earthquake and tsunami.
These initial impacts were apparently larger than the disruption witnessed in 1995 in the aftermath of the Kobe earthquake, and a wider set of events was considered as benchmarks for potential outcomes.
Twelve months ago, in March 2011, the devastating Tohoku earthquake and tsunami struck northeast Japan. The most serious natural disaster to hit the country since the 1995 Kobe earthquake, it also triggered Japan"s worst ever nuclear crisis - indeed, the world"s worst ever nuclear emergency since Chernobyl.
Significant Travel & Tourism impacts were inevitable, and were immediately evident as Japanese travellers remained at home and international visitors stayed away.
The World Travel & Tourism Council (WTTC), which has been tracking the performance of Japan"s Travel & Tourism since the disaster, commissioned Oxford Economics to prepare scenarios for the recovery of the industry:
Tuesday, April 3, 2012