I am writing this article in Tokyo. Judging from my walks around the city during the past week, and despite the fact everyone is wearing face masks, it's like Covid has vanished. Subways and trains are jam-packed and shopping areas are full of people. However, the pandemic has left some scars. Many shops have gone under, including my favourite 50-year-old sushi restaurant.
The return to "business as usual" for Japan didn't stem from tourist spending but rather from the financial strength of domestic consumers. Even before Covid first emerged, tourism income accounted for just 2% of Japan's GDP. Moreover, 81% of that was derived from domestic tourists. Foreign visitors played a relatively insignificant role in helping revive Japan's economy.
