A report from BC Stats on Friday revealed that Japanese tourists are not flocking to B.C. as they did a decade ago, with 2009 marking the lowest level of Japanese tourist traffic in B.C. in 20 years.
B.C.’s relationship with Japan appears to be growing more distant in other trade categories as well: Japan is B.C.’s second largest trading partner after the U.S., but exports from B.C. to Japan have been on a steady decline.
There were 63% less Japanese tourists visiting B.C. in 2009 compared to 1999.
Between 2008 and 2009, the number of Japanese tourists arriving in B.C. declined 27%.
The number of Japanese tourists visiting anywhere in Canada declined 59% over the last decade.
BC Stats author Jade Norton attributed the declines to a number of factors, including the recent recession, the SARS scare in 2003 and Japan’s sizable national debt.
Norton also found a correlation between B.C.’s trade with Japan and the island nation’s GDP.
For example, goods shipments from B.C. to Japan surged 21.6% in 2008, on the heels of a 2.4% increase in Japanese GDP in 2007.
But as the recession hit in late-2008 and 2009, the value of B.C. exports to Japan declined 31.2%.
In 1994, 59% of all Canadian shipments to Japan originated in B.C., compared to 43% last year.
The share of B.C.’s total exports that was destined for Japan dropped to 13.8% last year, from 15.2% in 2008.
Norton noted that the close tie between volume of exports and economy lies in the concentration of raw materials in B.C.’s exports to Japan, whose economy is largely driven by its manufacturing sector.
“Generally, a thriving economy tends to coincide with a strong manufacturing sector, which in turn results in more demand for the materials used in manufacturing goods,” said Norton.
If Japan continues to struggle, said Norton, the province may have to further modify its trade patterns, although Japan would definitely remain a main player in trade with B.C.
Norton noted that B.C.’s growing trade relationship with China could result in China surpassing Japan as B.C.’s second-largest trading partner.