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Tourism Flows to Japan: Its Determinants and Its Impacts on the Japanese Economy

Author

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  • Urasawa, Satoshi
  • Kasahara, Ryohei

Abstract

This paper analyses the determinants of international tourism, which has increased rapidly in Japan, and its impacts on the economy. The empirical evidence, based on a gravity model using international panel data, provides the robust facts for understanding the international tourism flows. It indicates that income of the origin(importing)country is a major determinant of tourism flows, suggesting that growing Asian neighbours contributed to the recent increase in tourism flows to Japan, while bilateral visa regimes had also an important role for tourism arrivals. In addition, the result, based on a structural VAR model consisting of output, real exchange rate and tourism flows, implies that the tourism is important to help boost Japanʼs output.

Suggested Citation

  • Urasawa, Satoshi & Kasahara, Ryohei, 2017. "Tourism Flows to Japan: Its Determinants and Its Impacts on the Japanese Economy," Economic Review, Hitotsubashi University, vol. 68(3), pages 250-263, July.
  • Handle: RePEc:hit:ecorev:v:68:y:2017:i:3:p:250-263
    DOI: 10.15057/28700
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    File URL: http://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/28700/keizaikenkyu06803250.pdf
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    Cited by:

    1. MORIKAWA Masayuki, 2018. "Effects of Distance and Borders on International and Interregional Tourist Flows: A micro-gravity analysis," Discussion papers 18021, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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