Japan’s payment volumes rise by 50% in cherry blossom season

Rich travellers spend 20% of their budget on accommodation, Visa found.

Tourist spending and payment volumes in Japan surged by 50% during the cherry blossom season, according to data released by Visa.
Spending peak days reportedly moved from south to north during the season, coinciding with timings of the peak blooms, the payment network giant noted in a study that leveraged transaction data across 17 prefectures.

Contactless payments were notably on the rise, with usage growing by 14% during the cherry blossom season.

There’s a notable difference in the way tourists spend their money depending on whether they’re visiting prefectures known for nature or large metropolitan areas.

Visitors of prefectures known for nature-oriented tourism such as Kyoto, Nara, Ishikawa, and Yamanashi spent more than 20% of their budget on accommodation. Travellers notably preferred to dine at their hotels and ryokan.

In contrast, visitors to Tokyo and Osaka spent more than 50% of their budgets on shopping and dining.

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SEA tourists are top spenders
Travellers from Southeast Asia and East Asia, notably Singapore, Indonesia, and Hong Kong, were top spenders during the season. 

These travellers notably did their shopping last minute, with 60% of their expenses spent shopping on the very last day of travel, purchasing souvenirs, gifts or to take advantage of the duty-free shopping draw. 
 
The Philippines led the region with the highest growth rate of 66% in terms of total payment volumes. 

Vietnam, meanwhile, registered the highest uplift of 22% in terms of spend per card.  

Rich travellers pick accommodation over shopping
Spending patterns also deviated based on income level. 

High net worth travellers reportedly allocated 20% to 30% of their spending towards accommodation during the cherry blossom period, with a shift towards shopping in the latter part of their trip.

Budget travellers, meanwhile, focused more on dining and shopping experiences, Visa found.