Japan now sees inbound tourism as an export industry, with great potential to emerge as a leading industry in the 21st century. The MLIT has identified a number of reasons for endeavouring to boost inbound tourism:

The imbalance between inbound and outbound travel: In 2002, foreign visitors to Japan numbered 5.23 million as against 16.52 million outbound Japanese. Japan's international balance of payments was in deficit by about US$29 billion (JPY3.5 trillion at US$1 = JPY119.37) by the end of 2002 according to the Bank of Japan. That same year, Japan was 35th in the rankings of international tourist arrivals, well behind its Asian neighbours China (PRC), Thailand, Indonesia and Korea (ROK). The MLIT has acknowledged that this reflects foreign tourists' widespread perception that Japan is a destination of meagre attractions. However, the MLIT added: It may also indicate that Japan lacks a competitive edge. The MLIT noted Japan is well-placed to capitalise on the huge growth potential in Asia Pacific, which enjoyed major increases in international arrivals in the years before the new normal. The World Tourism Organization estimates that East Asia and the Pacific will enjoy the worl
d's highest growth rate of 7.7% on average through to 2010.

The multiplier effect of tourism income: The MLIT understands the great multiplier effect of tourism income, as it spreads throughout the country to reach travel agencies, accommodations, transportation networks, restaurants, retailers, the amusement and entertainment sectors, advertising, primary industries and even elements of the manufacturing and construction sectors. At 2002 levels of arrivals - 5.23 million - Japanese inbound is estimated to have created jobs for about 230,000 people.
The potential for international understanding: The MLIT has said: Despite its rich natural attractions, cultural heritage and traditions, foreigners' leading image of Japan has long been one of a 'great industrial, manufacturing and economic powerhouse.' This has often led to a chronic misunderstanding of the Japanese character and people. The MLIT has recognised that through welcoming foreign visitors a deeper appreciation and a true understanding of Japan and its people will be generated. It added: This ongoing process of international mutual understanding will certainly contribute not only to Japan's sense of security but also to world peace.

The development of local pride and confidence: The MLIT thinks that Japanese people living in provincial areas can develop a deeper confidence and pride through the rediscovery of their own local cultures, which they can then show off to visitors. Each area has its own wealth of natural attractions and cultural traditions, which local residents may not notice because they have become too familiar. Yet these resources can become valuable tourism attractions.