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Japan set to ease duty-free restrictions

At the end of August, the Japanese government announced plans to revise its consumption tax exemption system for tourists, aiming to remove tax-free purchase limits for consumables and abolish special packaging requirements starting in 2025. According to the Japan National Tourism Organization, Japan welcomed approximately 17.78 million foreign visitors in the first half of 2024, significantly exceeding historical levels. The number of visitors is expected to reach 35 million for the entire year. From January to July this year, global visits to Japan surged 62% to 21.07 million, setting a new record. In July alone, the number of visitors exceeded 3.29 million, marking the 14th consecutive month with over 2 million visitors. Chinese tourists to Japan saw a dramatic 147.8% increase to 776,000 in July. The Japan Department Store Association reported a 150% surge in duty-free sales to 397.8 billion yen ($2.67 billion), a record high. In July, the number of duty-free shoppers grew 77% to 570,000, with duty-free spending reaching 63.3 billion yen ($431 million). The World Travel and Tourism Council estimates that tourism will contribute nearly 44 trillion yen ($295 billion) to Japan's economy this year, accounting for 7.5% of Japan's GDP.

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