Osaka Expo to boost consumption by 1 trillion yen: think tank

The World Exposition opening next month in Osaka could boost Japan's consumption by 1 trillion yen ($6.7 billion), with spending by foreign tourists outside the event venue accounting for about 30 percent, according to an estimate by a private think tank.

Of 28.2 million visitors expected by the organizers during the event from April 13 to Oct. 13, 3.5 million visitors from abroad will likely spend some 293 billion yen outside the expo site on transportation, hotels and other expenses, the Resona Research Institute said.

Photo taken in Osaka on July 12, 2024, shows official goods of the 2025 World Expo in the western Japan city bearing the event's official mascot Myaku-Myaku (red and blue) together with "Hello Kitty" and other Sanrio characters. (Kyodo) ==Kyodo

While the Japan Association for the 2025 World Exposition estimates that around 3.5 million visitors from overseas will attend -- just over 10 percent of the total projected turnout -- their per-person spending is expected to exceed that of Japanese attendees, bringing economic benefits to Osaka's shopping, dining and nightlife districts, as well as to nearby tourist destinations such as Kyoto and Nara prefectures, according to the institute's chief researcher, Hideyuki Araki.

The challenge will be coping with a surge in demand for hotels as the expo's security personnel and management staff will need to be accommodated near the venue, further tightening room availability, Araki said.

A shortage of hotel rooms could deter both foreign and domestic visitors, he added, recommending that hotels in neighboring prefectures with relatively low occupancy rates, along with "minpaku" private lodging, or residences or rooms offered for short-term stays, be promoted as alternatives.

Compared with pre-pandemic levels, the supply of private lodging in the Kansai region, which includes the major cities of Osaka, Kyoto and Kobe, has not increased, and the number of foreign visitors to the region staying at such accommodations is relatively low. If private lodging in the Osaka area can be utilized for foreign tourists, around 360,000 of the visitors can be accommodated, Araki said.

The expo typically becomes busier in the latter half of its run. If no hotels are available or they become too expensive, visitors will lose interest in coming and the economic impact will be reduced, he said.