Although the yen’s precipitous drop against the U.S. dollar is piling on extra costs for Japanese companies and households, one struggling industry is ready to bask in the glow of a historically low exchange rate: tourism.
In fact, fully lifting border measures — as the government appears ready to do — will not only revive spending by foreign tourists and help prop up the Japanese economy, some economists believe it could also play a role in stabilizing the fast-falling yen.
That potential isn’t lost on Prime Minister Fumio Kishida. Last month, Kishida said Japan will “take advantage of the weak yen” by easing border controls and accepting more foreign tourists.
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