Overwhelming response from Singaporeans for Japan tours and yen despite June's opening restrictions

SINGAPORE - With Japan announcing on Thursday (May 26) that it will reopen its borders to tourists from 36 countries from June 10, travel enthusiasts and industry players in Singapore are making plans for leisure travel there.

On May 21 and 22, travel agency EU Holidays held a Japan travel fair and received overwhelming response from visitors.

EU Holidays director Fiona Ma said more than 200 people have made bookings, with families making up the majority.

She said: "The biggest family group we have seen so far has 15 people. Many Singaporeans are making advance bookings because they are afraid that there will be a price surge towards the end of the year."

Before Japan's announcement, EU Holidays had not scheduled tours for June, given that it did not know when the country's borders would reopen.

But now Ms Ma said her company will begin planning for customers who want to travel late next month.

Chan Brothers Travel's senior marketing communications manager, Mr Jeremiah Wong, said the agency welcomed the news.

However, he added: "There is still more official information needed from the authorities, such as which virus risk category Singapore would fall under and detailed testing protocols.

"Once we have more clarity and if conditions are suitable for leisure travel, we are ready to bring forward our small group tours series to around mid-June to cater to market demand."

The agency last week launched a small group tour series, with a maximum group size of nine, to Japan. Departures for this series of tours are currently slated for end-June or early July.

Mr Wong said: "Interest in the small group tour series has been encouraging. However, most prefer to adopt a wait-and-see approach due to the level of travel restrictions.

"Cost is another factor as these small group tours are 40 per cent more expensive than our year-end Japan tours (in bigger groups)."

He added that since Chan Brothers Travel launched a series of year-end package tours with up to 25 people per group to Japan three weeks ago, demand and bookings have been rising steadily and more than 25 groups have been formed. 

The group size for its year-end tours may be adjusted to 30 travellers at a later stage.

On May 17, the Japan Tourism Agency announced that foreign tourists from the United States, Australia, Thailand and Singapore would be allowed to enter on small-group package tours as part of a trial programme. It did not specify the number of people allowed in a group.

Ms Ma said that EU Holidays received an invitation early this month for one of its employees to go for a trip under the trial programme.

The Straits Times understands that a total of four Singaporeans, including three representatives from other travel agencies, are going for the trip from May 26 to 30.

Besides Singapore, the three other countries allowed to run package tours are involved in the trial.

After the trial, new information regarding Japan's travel restrictions should be released and there will be greater clarity on the requirements, added Ms Ma.

SA Tours managing director Kay Swee Pin said the travel agency has prepared itineraries to Japan, but the prices remain uncertain because airlines have yet to provide group rates.

Currently, its tours are based on a group size of 15 to 20 people, with the first departure in July.

Ms Kay added: "Our understanding is that the group size should be 10 and below (for June package tours). By July, we expect the maximum group size to be increased."

Meanwhile, money changers are noticing a stronger demand for the Japanese yen.

Mr Anwardeen, the sole proprietor of Central Exchange at Suntec City, said: "Ahead of Japan's reopening, the demand for the yen is there. With the yen coming down quite a bit, a lot of people are buying more and keeping them."

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Last month, the Japanese yen fell to a 20-year low against the US dollar.

Mr Steven Lang of Silver River Money Changer said: "In the past, 10,000 yen was roughly $124. Now, the same amount of yen is around $108."

The weakening Japanese currency has encouraged many Singaporeans to take advantage of the good rates even though they are still uncertain when they will go to Japan.

Mr Tay from Fountain Money Changer at Marina Square said: "People used to exchange money only when they are about to travel. At the moment, many people are buying (long) before they travel.

"Some customers have not seen the yen dropping to such low levels, so they are buying more (and saving them) for the next few years."

Despite rising demand for the yen, Japan's travel restrictions continue to affect money changers.

VS Exchange director Deen, who goes by one name, said the average daily transaction amount is currently one million to two million yen. Before the pandemic, the amount was around three times more.

"The demand (for yen) is gradually increasing and once the borders are open, it will definitely be higher," he said.

This article was first published in The Straits Times. Permission required for reproduction.