Omicron shelves Japan’s reopening, but in post-Chinese tourism era, businesses are back in blossom

Tokyo, Kyoto et al have been without mass tourism for two years. But after the initial post-Covid collapse, many businesses have found they can cope just fine

As the new coronavirus variant delays reopening plans, a pressing question emerges: would the Japanese even really want foreign tourists back?

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Tourists in the pre-Covid era wait to enter the Sensoji temple in the Asakusa district of Tokyo, Japan. Photo: Bloomberg

Published: 9:00am, 5 Dec 2021

Ryohei Shimazaki ploughed a hefty slice of his savings into his dream retirement business: a boutique cafe in Kamakura, about an hour south of Tokyo. With its temples, shrines, and Japan’s largest seated Buddha, the old capital oozes with the kind of culture locals hold dear and tourists love to experience. As a mini-Kyoto of sorts, it was the perfect place for his new venture, and Shimazaki found a pretty spot by a well-trodden path to a famous shrine. A few years ago he took the plunge and opened his cafe.

He thought the timing had been perfect to get out of the “rat race” and serve his matcha teas, exotic coffees, cakes and light lunches to the steady flow of tourists, but it came close to being a total disaster.

“It was very stressful at times,” he said, stepping out from the tiny kitchen. “We opened Sasuke Café in October 2019, and although we were busy for a short time with some Chinese and Russian tour groups, as well as Japanese tourists, by January it had completely stopped.”

When the coronavirus pandemic broke out, Shimazaki’s cafe, like so many other local businesses, faced the very real prospect of failing as the free-spending tourists evaporated. Over the next year as Japan closed its borders and locked down, it saw a 7 per cent contribution to its economy from travel and tourism disappear. The loss of Chinese tourists was particularly dear – of the 4.81 trillion yen (US$42 billion) previously spent in the country in 2019 by its 32 million inbound tourists, a third came from Chinese visitors alone.

Ryohei Shimazaki at his cafe in Kamakura City. Photo: Neil Newman

Yet despite the doom and gloom and ongoing travel restrictions – the emergence of the new Omicron variant this week put an end to Japan’s tentative steps to reopen to business travellers – many tourism-facing businesses have found that, after the initial shock, they have learned to live with and adapt to their new normal. Shimakazi’s cafe for instance began a lunch delivery service for local residents. Then, as local restrictions began to ease those same people became loyal customers.

Now, nearly two years on, many businesses that were once reliant on the tourist dollar have found they can manage just fine without it. Last year the Government mobilised 52.6 million domestic tourists with its “Go To” promotions.