ConsumerInsight compares 2023 overseas travel destination resource & environment evaluations
- Japan offers world-leading travel content including food and shopping
- The quality of infrastructure, such as prices and cleanliness, is also high, making it the best in terms of satisfaction
- The cost of travel is not much higher than the average of Asian countries
- Japan’s attractiveness poses a threat to the future of Korea’s domestic tourism industry

○ Japan is becoming an explosively popular destination for Korean overseas travelers. Korean travelers have rated Japan as the top country in the world in terms of travel content and travel environment. The cost of traveling there is also considered affordable, being on par with the Asian average. The rising popularity of Japan poses a threat to the Korean domestic tourism industry.

■ Japan ranked 6th in overall satisfaction worldwide

○ Japan was ranked 6th out of 27 countries for overall travel destination satisfaction. It followed Switzerland, Spain, Australia, Italy, and New Zealand, making it the highest-ranked Asian country (Refer to “Satisfaction with overseas travel destinations for Japan increased and the USA fell.. why?”)[Table 1].

○ The satisfaction with a travel destination is determined by its resources (content) and environment (infrastructure). Japan ranked among the top in travel infrastructure comfort level (2nd worldwide) and was considered upper-middle tier (10th place) in terms of the appeal of its travel content [Table 1]. However, in an evaluation of 11 detailed aspects (5 for content, 6 for infrastructure), Japan demonstrated formidable competitiveness by ranking first in 4 categories, including two ties for the first place.

■ Travel Content Attractiveness: Highest satisfaction with things ‘To eat’ and ‘To buy’, that involve spending on-site

○ In the overall evaluation of content attractiveness, Japan ranked 10th, placing in the upper-middle tier. Japan trailed behind travel powerhouses like Australia, Hawaii, Spain, and Switzerland, as well as some Asian countries such as Indonesia and Singapore. However, among the five categories of content, Japan ranked first in two categories-things ‘To eat’ and ‘To buy’- which are the biggest contributors to local spendings [Table 2].

○ Food (To eat) and shopping (To buy) are crucial contents where almost the entire amount is spent locally, significantly impacting travelers’ value for money evaluation. This outcome demonstrates that the Japanese travel industry offers tourists from Korea a cost-effective tourism experience. Furthermore, it provides locals with profitable business opportunities, and operates as an ideal business model in harmony with local governments. (Refer to “Top Countries for Value for Money in Overseas Travel: Japan and Thailand, Where Does Korea Stand?”)

■ Infrastructure comfort level: Japan ranks within the top 4 in all 6 categories

○ Japan secured the second-highest rank worldwide in terms of infrastructural comfort for traveling [Table 3], only trailing behind the city-state of Singapore but ahead of travel environment powerhouses like Switzerland, Guam, and Australia. In detail, Japan was tied for first place with Germany in Prices and Singapore in the Cleanliness, respectively. Japan ranked second in Convenience facilities and Safety including third in Culture & Language and fourth in Transportation. Japan stood as a strong contender within the top 4 across all 6 categories.

○ Japan offers the ideal conditions to enjoy the world’s top-level travel content within the best infrastructure for traveling. Notably, the fact that Korean travelers rated Japan as the world’s number one in terms of ‘Prices’, a controversial issue in domestic travel destinations, is significant. This is the result from Koreans experiencing the best ‘cost-benefit ratio’ during travel in Japan. ■ World-class culinary delights and shopping experiences with low travel budget

○ Considering only travel content and infrastructure, the top three destinations for Korean travelers are Australia, Switzerland, and Singapore. However, when factoring in both ‘value for money’ and ‘Cost-benefit ratio’, Japan undoubtedly leads the pack.

○ The average daily cost in Japan is 251,000 KRW, which is not significantly different from the overall Asian average of 231,000 KRW. Spending just an additional 20,000 KRW per day to enjoy the world’s top culinary delights and shopping experiences makes Japan an undeniable ‘tourist paradise’. Moreover, the exceptional ‘Cost-benefit ratio’ provided by Japan’s excellent travel infrastructure, including Cleanliness and Prices, has always been highly sought after. Being able to indulge in these luxuries in Japan, a rival to Korea and advanced country, is indeed a privilege.

○ Koreans are flocking to Japan for many reasons, including time efficiency, cost-effectiveness, enjoyable food and shopping, and cultural similarities, to name a few. Japan presents a formidable competitive alternative to Korea’s domestic tourism industry and is also a key factor in Korea’s significant tourism deficit.