Japan's New Economy Depends on Robots and Tourism

The tourism push provides a platform for Japanese brands to boost exports, while increasing mechanisation will ease the problem of an older workforce

Morningstar Equity Analysts 19 September, 2017 | 3:55PM
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Tokyo Olympics

With an ageing population and sluggish domestic demand, the Japanese government sees tourism as a key growth driver for their economy. The Tokyo Olympics in 2020 will be a crucial test for the country’s ability to attract visitors.

Japan is targeting 40 million tourists by 2020. This is double its original goal after the country attracted almost 20 million visitors in 2015, four years ahead of schedule. Following the Tokyo Olympics, the target rises to 60 million visitors by 2030, which the country hopes will drive 15 trillion yen in spending. According to the World Travel and Tourism Council, direct and indirect contributions from tourism are forecast to make up 8.2% of Japan's GDP by 2027, up from 7.4% in 2016; the global average is around 10%. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Fanuc Corp24,535.00 JPY0.04Rating
Mitsubishi Estate Co Ltd1,765.50 JPY-0.25Rating
Mitsubishi Heavy Industries Ltd3,102.00 JPY0.98
Mitsui Fudosan Co Ltd2,637.00 JPY-0.09Rating
YASKAWA Electric Corp5,040.00 JPY-1.95Rating

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Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.