||Panel data analysis of the factors for determining inbound tourism in Japan
森 朋也薮田 雅弘
The demand for inbound tourism in Japan has been increasing since 2013. In 2015, the number of inbound tourists reached approximately 20 million. The Japanese government is making various efforts to increase the number of foreign visitors and has set a target of approximately 40 million inbound tourists to be reached by 2020. The aim of this paper is to demonstrate empirically the demand for inbound tourism in Japan by using the gravity model with panel data. According to demand theory, the income factor, as well as the relative prices in origin countries, influence the demand for inbound tourism. Focusing on a visa-permission tourism policy, the paper clarifies that not only income and relative price effects but also travel policy will have a significant effect on increasing inbound tourism in Japan.