Tourism and the 2020 Olympics
It is strongly hoped that the 2020 Olympics will have positive economic effects on Japan. The two main areas of growth expected are an increase in foreign tourism, and an increase in construction investment associated with this event.
Tourism in Japan has been slowly growing mainly due to easier visa requirements and the depreciation of the yen. In 2015 around 19 million tourists visited japan, which was a 47%, increase from the year before.
Spending by foreign visitors also reached a record ¥3.48 trillion, an increase of 71.5 percent from 2014. Japan’s inbound tourism industry is now equaled to that of its auto parts exports. The Japanese government has set a foreign visitor target for 2020 at 20 million, which it looks like it will be easily achieved especially with the addition of the Olympic Games.
Tourists are not know to purchase property whilst they are traveling, however, it’s the exposure to Japan that is the important factor. Asian buyers, particularly from China see Japan as an inexpensive option for property purchases. Chinese have been know to come to Japan for 3 day property shopping trips especially in Tokyo and Osaka.
Low interest rates, high rental yields, and the prospect of rising land values ahead of the 2020 Games Japanese property looks to be a genuine investment opportunity for foreign investors.