Comprehensive PEST Analysis of Japan's Inbound Tourism Market

This report presents a PEST (Political, Economic, Social, and Technological) analysis of Japan's inbound tourism market. The political factors discussed include government intervention, policies, and trade restrictions, highlighting their impact on tourism. Economic factors cover growth, exchange rates, inflation, and unemployment, assessing their influence on the market. Social factors encompass languages, culture, consumer trends, and aging populations, while technological factors address internet usage and automation. The analysis concludes that a positive economic environment and technological advancements are crucial for the development of inbound tourism, but high taxation can be a burden. The report emphasizes the importance of stakeholders considering these factors to boost the inbound tourism market, referencing several academic sources to support its findings.

Tourism Business Environment

A PEST analysis of an Inbound Tourism Market.
Political factors
Category
Government.
Tax policy
Trade
restriction
Relevance to Potential Inbound
Market
In every nation the political factors are the major
impact on the Potential inbound tourism market that
can be describe as follows:
Japan Government intervention on the tourism market
with implementation of different policy and procedure
related business for ethical practices and objectives to
bring the development of society by attract-in tourist in
different destination of Japan. From the prime minister
Shinzo Abe takes the charge of government and
promised in their campaign to promise for boost
development of nation Mihalič Žabkar & Cvelbar,
(2012).
Due to changes in the new taxation policy 2014 for the
business class have the large impact on the inbound
tourism market. 8% tax will be impacted on the citizen
while the business people have to pay 30.86% which is
high for them. If these much of tax have to pay from
the business which will directly impact on the revenue
of the organist. The firm will raise the cost of goods
Categor
y
Economic
Growth
Exchange
Rate
Inflation
and GDP
Relevance to Potential Inbound Market
In every nation the Economic factors are the major
impact on the Potential inbound tourism market that
can be describe as follows:
The growth of the japan economy is faster in
comparison of other nations and inbound tourism
market is also in developing stage due to the third
largest economy in the world which is the indication
for Chance of high growth of inbound tourism in
nations. But due to the globalization and downward
sloping economy of other nation will less impact on
the japan economic growth. As the new government
have been focus on the aggressive policy to inject the
economic condition.
In the period of 2001 and 2007 the change for the
Japanese currency yen wakening against the sterling in
which for the tourist of Britain it will be more burden
on the different goods and service relates with tourism
such as reduction of price of airlines. If the exchange
rate of the currency will be down than it will be
directly impact on the flow of money in inbound
tourism market in which the economy will be face

and services related to the tourism market.
If the government will restricted the trade between the
two nation will affected to the tourism market in terms
of supply and demands of the particular goods and
services Will availability at the high cost in the local
market. The bilateral relation with china and Japan can
be impacted on their trade Carlisle, Kunc, Jones &
Tiffin (2013). If any nation will restriction then tr4ade
than the tourism market will be impacted on the
nations resources.
Unemploy
ment rate
many challenges.
The growth of the economy will be direct impart on
the GDP of the Japan. The real GDP of the nation have
been decreasing in the year 2013 from 1.4% but in the
year 2014 it was 1.7 slightly changes as compared
with year 2012 from 1.9. it shows that economy need
to stimulate to with step for the business to attract the
tourist. Also the purchase Powers of the customer is
increase which can be relative price level. The
inflation of the nation also one of the major factor for
the Japan.
These are the major problem for the japan which have
the consistency of 4% unemployment in the nation
will give changes for increasing the tourist help to
lower the unemployment in the nations. Due to the
average earning of citizen had increased from 3.1 %
which is reconcilable but the tourism will give more
changes for setting up business for people who are not
able to balance their livelihood Sotiriadis & Van Zyl
(2013).

Social Factors
Category
Languages and
Culture
Consumer
trends
Travel Trends
Relevance to Potential Inbound
Market
In every nation the social factors are the major impact
on the Potential inbound tourism market that can be
describe as follows:
Japan have the most Customer and discip0ilne society
in then world. Due to the culture of the nation will give
more attraction toward the tourism sectors. The
vacation leave for the Japanese employees get
approximately 16.6 days with half of amount
Compensate to them. But 8% people will allotted these
level while rest of them need to work. These can be the
major factors for inbound tourism market. The kawai
is the Japanese term which means cute and beautiful.
The cuteness is highly values in the japan pop culture.
The most important things in the terms kawai can be
used for the animals as well people Mason & Paggiaro,
(2012). These have been trends in the tourism market
of Japan.
The lifestyle of the people have been change in the
japan which well boost the inbound tourism market.
The consummation foods and beverage are organic
which is focu8es on the fitness with the help of Yoga
and other activities Briassoulis & Van der Straaten
Categor
y
Internet
Automatics
Relevance to Potential Market
In every nation the technological factors are the major
impact on the Potential inbound tourism market that
can be describe as follows:
These can be the major changes in the technological
sector of the Japan which can be increase the inbound
tourism. In japan the number of internet users are 27.7
million broadband lines. Due to the Internet people can
be easily access the information of different tourism
destination. The business are doing easy with the help
of internet to get the idea about each and every thing
about to attract tourism,Webster & Ivanov, (2014).
Japan is most advanced nation in terms of automation.
The tourism related goods and service are mostly
automated which can be automatic vehicle and buses
which can be easy to travel for the tourist from one
place to another. The robotic revolution have been
arise in terms of many restorer to serve the customer
service related to welcome of tourist and food serve.
But due to these changes the cost and time will be save
for the tourist and it will help to enhance the inbound
tourism market. While People of Japan are accustomed
for purchasing of trains tickets, books, plane pass or
the shopping or pay the money. Holden (2016). These
all can be possible with the help of spread of internet
and automation which can be increasing the inbound

Aging
Popluations
(2013).
In the year 2011 Japan earthquake and tsunami had
damages all the tourism destination of japan which
have large impact on travel. The outbound travel have
been slowed down but inbound activity in terms of
tourism inbound have been increased.
In the Japan the ration of the age in between the adult and
youth is more and these can be the major factor which can
be impact on the inbound tourism market. The adult are
frequently travel but youth is energies Hall & Page
(2014). Japan government had take various step to develop
the youth in terms of NEET which means youth not in
employment, education or training. These types of the
measure is to bring changes in the society. The travel agent
had also noticed that more number of youth will increase
for the different inbound tourism developing with voluntary
work.
tourism in Japan.

Conclusion:
From the report the outcomes can be interfaced for the inbound tourism sector can be easily concluded that PEST analysis of japan will
help to boost the various factors in terms of growth in the economy can be the positive impact on development of tourism. The new government
have been focus on the aggressive policy to inject the economic condition. Unemployment have to decrease with necessary step taken from the
government and that can be help to inject the inbound tourism market. Due to changes in the new taxation policy 2014 for the business class
have the large impact on the inbound tourism market. It can be done through the changes in the lifeless of the society and the consumer
expectation should be meet in terms of accommodate and transportation.The robotic revolution have been arise in terms of many restructures to
serve the customer service related to welcome of tourist and food serve. But due to these changes the cost and time will be save for the tourist
and it will help to enhance the inbound tourism market. Aging populations youth not in employment, education or training. Due to social factor
the term Kawai have been trends in the tourism market of Japan. The major changes in the technological factors are the most important aspect to
enhance the growth and development of inbound tourism market. But due to the less opportunity growth in the business class people for heavy
burden in terms of 30.86% tax which can be the burden on profits and they will charge the high price from the customers for the different goods
and services. Therefore it is important for all the stakeholders to considered to take decision related to boost the performance of inbound tourism
market.