Impacts of pre- and post-COVID-19 pandemic

According to Hokkaido Tourism Organization, the total tourism consumption in 2021 was 54.81 billion JPY (3.8 billion Euro) increased by 25.9% compared to the total consumption in 2020.

Before covid-19 pandemic, the total travel consumption in Hokkaido was 1.51 trillion JPY (10.57 billion Euro) and the economic ripple effect was 2.19 trillion JPY (15.27 billion Euro), and still the economic value is down to 30–40% of pre-covid.

The number of foreign tourists coming to Japan

Thought covid-19 left considerable damage to tourism industry, the increase of foreign tourists was remarkable.

Japanese tourism suffered its worst year on record in 2011 along with the earthquake, the number of foreign tourists kept increasing and reached over 30 million. The government of Japan targets to increase the number to 60 million by 2030.

Hokkaido had 0.57 million foreign tourists in 2011, and it grew to 2.5 million in 2019. One of the distinctive characteristics amongst the foreign tourists is its travel consumption power.

Economic impact by international travelers visiting Hokkaido

Japan Tourism Agency analyzes that the amount of consumption by 7.1 foreign travelers visiting Japan is the same as annual consumption of a local Japanese resident.

In Hokkaido, international travelers tend to spend larger amount of money and the amount of consumption by 6.6 foreign travelers visiting Hokkaido is equivalent to the annual consumption of a local resident in Hokkaido, according to Hokkaido Economic Federation.

In 2015, the ratio of tourism consumption by foreign tourists consists of 25.9% in Hokkaido whereas the national average is 13.2%.

According to the analysis of Hokkaido Tourism Organization, foreign travelers in Hokkaido spend in total of 138,778 JPY during their visit where as Japanese travelers from outside of Hokkaido spend approximately 70,000 JPY.

On average,

• 42,128 JPY / transportation
• 39,977 JPY / accommodation
• 22,926 JPY / food
• 25,302 JPY / shopping

was spent on each activity out of the total of 138,778 JPY per traveler.

By country/area, travelers from Europe spend 8.1 nights in Hokkaido out of the total of 17.6 nights of stay in Japan. Travelers from Australia/New Zealand spend 9.9 nights in Hokkaido out of the total of 16.5 nights of stay in Japan. On average foreign travelers spend 4–6 days in Hokkaido.

34.9% of foreign travelers in Hokkaido is concentrated in the Q4, and Hokkaido especially attracts skiers and snowboarders from the US, Australia, Canada, China and Thailand.

In 2019, 67.8% of the travelers (1.66 million travelers) are the first time traveler in Hokkaido. Hokkaido Prefectural Government is targeting to have 1/3 to be the repeating travelers.

Which area of Hokkaido attracts foreign travelers?

According to the research of Hokkaido Prefectural Government, the top destinations for all the travelers are

1. Sapporo
2. Otaru
3. Furano

Niseko and Yoteizan attract American & Australian travelers in addition to those from China and Hong Kong. Majority of travelers from South Korea is staying around Sapporo area.

Almost 90% of foreign travelers are coming from China, Taiwan, South Korea, Hong Kong, Thailand, Malaysia and Singapore.

Compared to the national average Hokkaido is attracting more travelers from Taiwan, Thailand, Malaysia and Singapore. Apparently the increase in the number of direct flights arriving Hokkaido contributed for the growth of the number of travelers from these countries.

The ratio of travelers from China, South Korea and Hong Kong to Hokkaido is smaller than that of national average.

Making it even more attractive — SWOT analysis

Hokkaido Prefectural Government specify the following strengths, weaknesses, opportunities and threats to further strengthen its tourism industry in the upcoming years.

Strengths

As we all notice strength that Hokkaido wants to promote is its beautiful and rich nature with four seasons, good food, diversified history & culture, adventures, and upcoming Hokkaido Shinkansen (bullet trains) and privatization of services available in airports.

Weaknesses

• Undeveloped local transportations
• Inaccessibility from Europe & the US
• Over-tourism in specific locations
• Lack of tourism guides

Hokkaido has a vast land, and it leads to longer traveling time to each destination. Undeveloped transportation systems from the main hub such as airports and major train stations hinders travelers to reach some destinations.

Opportunities

• Increase of inbound tourisms especially from Asia
• Adventure Travel World Summit Hokkaido
• Jōmon Prehistoric Sites in Northern Japan inscribed on the World Heritage List in 2021
• The most attractive prefecture in Japan №1 (12 years in a row)

Threats

• Natural disasters / pandemic
• Global political risks
• Exchange rate
• Climate Change
• Lack of working populations

On top of all travelers from Asia, Hokkaido is looking forward to see Adventure Travel World Summit Hokkaido to be a clue to attract more travelers from Europe, Australia and North America.

Come and visit Hokkaido!