Comparing Five Countries With Minimal Yen Depreciation Impact for Summer 2024 Amid Historic Yen Weakness and Rising Domestic Hotel Costs

2024-07-24

$1 at 160 Yen, €1 at 172 Yen: Japanese Overseas Travel Remains Below 60% of Pre-COVID Levels

According to a recent announcement by major travel agency JTB, overseas travel for the summer of 2024 is expected to remain at just under 60% of pre-COVID levels from 2019. In contrast to the sharp increase in inbound tourism, Japanese overseas travel is still recovering slowly. Additionally, due to the influx of inbound tourists, domestic hotel prices have skyrocketed.

Therefore, we have selected countries and regions where the impact of yen depreciation is minimal and are easier destinations for Japanese travelers. We compared factors such as airfare, hotel rates, and the price of a bottle of mineral water.

All data as of August 1, 2024; survey conducted in early July 2024
Airfare is for round-trip direct flights (unless noted otherwise), hotels are for 1 room with 2 people, Big Mac Index (BMI) based on 2024 data (Japan’s single item price starts at 480 yen)

Allies of budget travel: LCC. For those who dislike narrow seat pitches or are traveling to cities with long flight times, aiming for ZIPAIR or Air Japan is recommended.

[South Korea] Although prices are rising, LCCs and FSCs, the wide range of flight options is attractive.

First, from our neighboring country ‘South Korea.’ Including this summer vacation, it has consistently been among the top overseas travel destinations in recent years.

In Seoul, South Korea, Myeongdong is a popular bustling area among Japanese tourists. The Seoul city’s subway costs 1500 won (about 172 yen) for distances within 10 km, which is almost the same as Tokyo. From July 1st, unlimited ride tickets for the subway and buses have been on sale (1-day pass from 5000 won).

Airfare: 37,390 yen (Tokyo/Narita to Seoul/Incheon, using Air Busan)
Hotel Rate: 16,645 yen per night (Sejong Hotel Seoul Myeongdong, 4-star)
Mineral Water: About 75 yen (620 won, 500ml)
Big Mac: About 630 yen (5,500 won)

In reality, South Korea has seen increases in airfare, hotel rates, and local prices both before and after the pandemic. However, because the flight time is short, the number of nights spent locally is also fewer. The proximity to Japan means that airfare is relatively cheap, allowing for a trip with lower travel expenses. There are many flights operated daily, from major airlines (FSC) to budget airlines (LCC), providing a wide range of fare options and contributing to the high number of repeat visitors.

[Taiwan] Although travel costs are rising, the famous night market food is still quite affordable.

Following South Korea in popularity is ‘Taiwan.’ Despite being close to Japan, it has a strong positive image due to its pro-Japan sentiment and good safety.

In Taipei, Taiwan, the Ningxia Night Market. The night market’s famous oyster omelet ‘蚵仔煎,’ also featured in Michelin’s Bib Gourmand, is about 90 NT dollars (approximately 438 yen).

Airfare: From 37,890 yen (Tokyo/Narita to Taipei/Taoyuan, using Peach)
Hotel Rate: 12,221 yen per night (Cosmos Hotel Taipei, 4-star)
Mineral Water: About 100 yen (20 NT dollars, 500ml)
Big Mac: About 365 yen (75 NT dollars)

Even though Taiwan has seen a 1.5 times increase in airfare and nearly double the rise in hotel rates since the pandemic, making it less of a bargain than before, its proximity to Japan remains a significant advantage. The total travel cost is still relatively low, and local food expenses can be managed by dining at night markets and convenience stores. There are also many flight options available.

[Thailand] A staple travel destination in Southeast Asia, hotel prices remain low.

In Southeast Asia, ‘Thailand’ boasts unwavering popularity for its cities, resorts, history, and cuisine. There are many flights between Japan and Thailand, and prices are lower in July and August, which coincide with Thailand’s rainy season.

In Bangkok, Thailand, popular rooftop bars offer stunning night views and are attractively priced compared to more developed countries.

Airfare: 51,367 yen (Tokyo/Narita to Bangkok/Suvarnabhumi, using Thai AirAsia X)
Hotel Rate: 8,260 yen per night (Best Western Chatuchak, 4-star)
Mineral Water: About 45 yen (10 Thai baht, 600ml)
Big Mac: About 590 yen (135 Thai baht)

Recently, prices in Thailand have risen, and in the capital Bangkok, costs are nearly on par with Japan. However, hotels remain affordable. For 3-4 star hotels, you can comfortably stay for around 10,000 yen per room per night. Dining is also economical with a wealth of options like night markets and street food, and it offers a different cultural experience compared to East Asia.

[Vietnam] Prices are still much lower compared to Japan.

In Vietnam, prices are lower than in Japan. Before the pandemic, costs were about one-third of those in Japan, and now they are around half, but they still feel quite affordable.

Prices in Vietnam are generally lower than in Japan. A bowl of pho costs around 30,000 dong (approximately 200 yen).

Airfare: 67,940 yen (Tokyo/Narita to Hanoi, using VietJet Air)
Hotel Rate: 8,100 yen per night (Hanoi Lion Boutique Hotel, 4-star)
Mineral Water: About 30 yen (5,000 dong, 500ml)
Big Mac: About 460 yen (74,000 dong)

Although the global depreciation of the yen has somewhat affected the Vietnamese currency, the cost of living is still lower compared to Japan. The affordability of hotels is particularly appreciated. There are also plenty of affordable dining options like street food stalls and local eateries unique to Asia, so finding inexpensive places to eat is not a problem.

[Turkey] Currency depreciation attracts foreign tourists alongside Japan.

For those who are not satisfied with Asian destinations, ‘Turkey’ is highly recommended. Turkey has long been known for its lower prices compared to Japan, and currently, currency depreciation is an issue due to domestic inflation.

Istanbul, Turkey, is known as a crossroads of East and West, offering many attractions, and Turkish cuisine is considered one of the world’s top three cuisines. The famous fish sandwich (saba sandwich) costs about 140 Turkish lira (approximately 672 yen) at street stalls.

Airfare: 134,770 yen (Tokyo/Haneda to Istanbul, using China Southern Airlines with one transfer)
Hotel Rate: 8,512 yen per night (My Suite Istanbul Cihangir, 4-star)
Mineral Water: About 25 yen (5 Turkish lira, 500ml)
Big Mac: About 575 yen (120 Turkish lira)

While hotels in Turkey are generally affordable, the distance from Japan means that airfare is relatively high. A direct flight costs around 185,120 yen (Tokyo/Narita to Istanbul, using Turkish Airlines). To save on travel expenses, it’s advisable to make good use of connecting flights.

Domestic hotel prices are increasingly soaring, coinciding with the inbound vacation period.

According to travel giant JTB’s report on travel trends, the number of overseas travelers in 2024 is estimated to be 1.75 million. Although this is a slight increase of 1.2% compared to last year (2023), it remains only 57.8% of the 3.03 million in 2019. Reasons for the stagnation in overseas travel include the weak yen and high local prices.

Kyoto’s Nishiki Market, long known as ‘Kyoto’s kitchen,’ has seen a significant increase in inbound-focused stores alongside long-established shops. There are now more foreign travelers than Japanese visitors.

On the other hand, domestic travel has decreased to 68 million, which is 95.8% compared to last year and 93.9% compared to 2019. Factors include the lack of financial flexibility in daily life and the sharp increase in hotel prices due to the impact of inbound tourism in Japan.

Moreover, summer vacation is also a vacation period for foreign tourists from Europe and the U.S. Despite it being summer break, the situation where not only foreigners but even domestic travelers find it difficult to travel is indeed harsh.

Advice from travel professionals on how to save on overseas travel costs.

The weak yen undoubtedly makes overseas travel challenging. However, there are still countries and regions where prices are comparable to or lower than those in Japan.

One technique to save on travel expenses is to choose connecting flights instead of direct flights. Although it may take a bit longer, connecting flights are often cheaper. If you can enjoy the local cuisine during the layover at the airport, it can add even more memorable experiences to your trip.

The Golden Temple in the Sky, Wat Phra That Doi Suthep, located in Chiang Mai, Thailand. Accommodation costs and prices in Chiang Mai are said to be about 10-20% lower compared to Bangkok.

In South Korea’s second-largest city, Busan, Haeundae Blue Line Park, which opened during the pandemic, is popular. Overseas, prices in regional cities tend to be lower compared to capital cities or resorts.

Additionally, staying in regional cities rather than the capital can often result in even lower local prices and hotel rates. In South Korea, Busan; in Taiwan, Kaohsiung; in Vietnam, Ho Chi Minh City; and in Thailand, Chiang Mai are examples where direct flights from Japan are available. Sometimes, regional areas even offer better safety than urban centers.

Moreover, using ride-sharing services like Grab or Uber can help save on transportation costs. By specifying your destination in the app, you can move directly to your location without needing to understand the local language, and if you register a credit card, you avoid the hassle of payment with the driver. For communication while abroad, Japan’s ‘ahamo’ is recommended as it covers 14 days of international usage with 20GB of domestic data.

In international travel, ensuring safety is the top priority. Beyond that, it’s advisable to look for countries or regions with minimal impact from yen depreciation and to identify areas where you can save on travel expenses. It’s worth investigating these options further.

Ministry of Foreign Affairs of Japan Overseas Safety Information Distribution Service – Tabiregistration

Interview, text, and photos： Shikama Aki