2023-08-15 01:18:13
Japan’s tourism stocks are likely to be the biggest beneficiaries in Asia from the easing of overseas group travel by Chinese tourists.
The Japanese yen has depreciated 4.8% once morest the yuan this year, the lowest among other Asian currencies, making it easier to attract tourists from China. The number of Chinese tourists visiting Japan in the first half of this year has recovered to only 13% compared to before the corona crisis, and there is a lot of room for improvement.
According to Japan National Tourism Organization data, Chinese visitors to Japan spent more than 1.7 trillion yen in 2019, and travel-related companies will benefit if tour groups return.
Japan and South Korea are both major beneficiaries, but Japan in particular has room to recover, says Junron Yip, market strategist at IG Asia. “Revenge consumption” will be a tailwind for these economies, he added. The return of Chinese tourists might also highlight the cheap valuation of Japanese stocks relative to Asian tourism stocks. Of the 10 cheapest travel stocks in Asia outside China and Hong Kong, half are Japanese, according to data compiled by Bloomberg. However, China’s slow economic recovery and soaring long-distance air fares might dampen outbound tourism from the country. Related article: Lifting of the ban on Chinese group visitors to Japan, hopes to boost inbound consumption China Tourists: Taking Stock (Excerpt)
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