Visa, a global payments leader, has released insights into the economic impact of Japan’s captivating Sakura (cherry blossom) season. The data reveals a 50% increase in tourism spending, driven by a 43% surge in transaction volume during this cultural event.
The Sakura bloom catalyzed a spike in tourism, leading to increased payment volumes across Japan. Spending peaks moved from the south to the north, aligning with the bloom’s progression. Regions renowned for their cultural heritage and nature-focused attractions, such as Kyoto, Nara, Ishikawa, and Yamanashi, experienced a doubling of weekly visitor numbers during the peak Sakura period.
While Tokyo and Osaka, Japan’s major cities, saw a robust 60 to 70 percent increase in weekly tourist numbers, smaller regions witnessed even greater growth. Nature-rich prefectures attracted visitors who allocated over 20% of their budget to accommodations, often opting for authentic experiences at hotels or traditional Japanese inns (ryokans).
In contrast, tourists in Tokyo and Osaka spent over 50% of their budget on shopping and dining, indulging in renowned culinary and retail experiences. Osaka Convention & Tourism Bureau’s General Manager of Marketing Strategy Department, Mr. Makita Hiroki, acknowledged the unifying power of the Sakura season and expressed optimism about leveraging Visa’s insights for the upcoming Osaka expo.
Visa’s data reveals that travelers from Southeast Asia and East Asia, particularly from Singapore, Indonesia, and Hong Kong, were the highest spenders during the season. Notably, these travelers indulged in last-minute shopping frenzies, allocating 60 percent of their expenditures to souvenirs, gifts, and duty-free bargains on their final travel day. The Philippines showed exceptional growth with a 66 percent increase in payment volumes, while Vietnam saw the largest increase in spending per card at 22 percent, particularly in luxury and jewelry shops.
East Asian tourists contributed to the rise in jewelry store spending, with an eight percent increase. Spending patterns varied based on income levels, with high-net-worth individuals allocating 20 to 30 percent of their budget to accommodation and pivoting to shopping later in their visit. Budget travelers maintained a more versatile spending pattern, focusing on dining and shopping experiences.
Travelers are increasingly embracing contactless payments, with a 14 percent surge in usage from the start to the end of the Sakura season. This shift underscores a growing preference for seamless payment methods during travels, as more visitors utilize contactless options at various purchase points. The significant adoption in essential sectors like dining and grocery shopping highlights these areas as key catalysts for the expansion of contactless payment methods.
Visa’s Senior Vice President and Head of Products and Services for Asia Pacific, TR Ramachandran, emphasized the power of data in driving informed decision-making. He highlighted the analysis of the Sakura season’s effect on tourism and expenditure patterns, which helps decode consumer behavior, spot trends, and forecast future events. Visa’s data insights empower industry players and local merchants to anticipate future behaviors and tailor their offerings to specific demographics and regions.
Visa’s analysis utilizes anonymized, aggregated transaction data to examine spending trends across 17 prefectures during the Sakura bloom. With Visa Destination Insights and Visa’s consulting and analytics expertise, clients gain valuable insights to optimize their offerings and deliver a seamless travel experience for visitors.
