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Japan Sees 36% Drop in Foreign Tourist Spending

9/12/2025

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Story summary
  • In July 2025, foreign tourist spending in Japan fell sharply, with tax-exempt purchases down 36.3% to 40.34 billion yen (approximately $272.5 million).
  • Average spending per foreign tourist decreased by 23.6% to 84,000 yen.
  • Chinese visitors' shopping dropped 29% from April to June 2025, affecting luxury brands like Kering and LVMH.
  • The decline is linked to China's economic slowdown and a stronger yen.
  • Foreign tourists shopping at department stores decreased by 16.7% in July compared to 2024, marking five months of declining tax-exempt spending.