In-store tax free sales in Japan have swelled by more than 50% from April 2017 to March this year, data from Global Blue has revealed.

In a June bulletin, Global Blue says the country’s ‘unprecedented’ growth in tax free shopping has been fuelled by a ‘thriving inbound tourism market and preparation for the 2020 Olympic Games’.

Chinese shoppers remain Japan’s largest tax free contributors, accounting for 65% of the country’s tax free results.

“Sales-in-store progression from the Chinese globe shopper market posted an impressive +73% growth from April 2017 to March 2018,” said Global Blue.

VISITORS REACH 29M IN 2017

According to official data from the Japan National Tourism Organization, Japan welcomed 28.7m *visitors in 2017, 7.4m of which came from China.

This is largely to do with the explosion in popularity of tier two and three city destinations linked to growth in disposable incomes and enhanced flight connectivity.

Elsewhere, South Koreans continue to seek alternative shopping avenues due to the domestic situation regarding the Terminal High Altitude Area Defense (THAAD) system.

Between April 2017 to March 2018, South Korean customers represented 5% of Japan’s tax free shopping spend in the country, with growth in sales of +43%.

Improve visa access for countries such as China, Indonesia and Thailand coupled with significant investment in promotional initiatives in the lead-up to the Olympics and the relative weakening in the Japanese Yen has also made travel and shopping more affordable, added Global Blue.

*Based on number of international travellers, including transit traffic but excluding permanent Japanese residents.