Corona Virus Turns Shopping Centers In Japan Into The Ghost Town

According to the Nikkei Asian Review, the statistics of KDDI Telecom show that the number of people appearing in the central areas and attractive tourist destinations in Japan has decreased significantly compared to 2019.

In the old Asakusa neighborhood in Tokyo, famous for the city's oldest Sensoji temple, the number of people walking on weekends and holidays has dropped by 15.5% compared to January 2020.

That figure in the Umeda district, Osaka city - famous for its famous shopping and dining places for Chinese tourists - is 15.2%. The cities of Kyoto and Yokohama recorded a decrease of 14.1% and 9.7%, respectively.

The number of people walking on weekends and holidays in the Asakusa neighborhood has decreased by more than 15% compared to January 2020. Photo: Reuters

GDP will evaporate 25.9 billion USD

With consumption accounting for 60% of GDP, many people are concerned that reducing personal spending will make the Japanese economy stumbling.

Economist Toshihiro Nagahama from the Dai-ichi Life Research Institute estimates that Japan's GDP could be lost by about $ 25.9 billion. This will cause more severe consequences for the country's economy than the 2011 earthquake - tsunami disaster.

As of February 21, the number of corona virus infections in Japan was 105. This figure excludes more than 600 Japanese tourists who are positive for this virus on board the Diamond Princess.

The fewer and fewer people leaving the houses have left shopping centers heavily affected. The number of visitors to the Mitsukoshi Ginza shopping center, located in a high-end shopping district in Tokyo, decreased by 10% compared to the same period last year.

The mall was hit hard by fear of the corona virus. Photo: Nikkei.

Retailer Sogo & Seibu saw a 5% drop in sales compared to the same period in 2019. The company's representative said that number could increase to 10%.

Drugstores and supermarkets suffer the same fate. Major stores in Tokyo in February 2020 recorded a 40% reduction for items such as cosmetics, pharmaceuticals, and other necessities.

Strong impact on restaurants and hotels

Famous tourist attractions are no exception. Typically, the number of visitors to Osaka Castle and Tokyo Tower this month decreased by 40% and 30% compared to the same period of previous years.

Sanrio Puroland Park, which has been popular with Chinese tourists, has not seen any group of Chinese tourists coming to play this month. Sanrio Puroland operator said it closed the park until March 12 to limit the spread of corona virus.

East Japan Railway Company warns that many residents have stopped using public transport. The number of people on the shinkansen bullet train decreased by 10% compared to the same period in 2019.

Concerns about corona virus will strongly impact the restaurant and hotel industry. Entrepreneurs in the industry say mass cancellation is not just coming from Chinese travelers.

Besides, the number of people choosing to order food online is increasing. Chibo Dotonbori pancake restaurant in Osaka City recorded a 40% decrease in arrivals compared to the same period last year, but the number of online orders was significantly higher.

Air purifiers are one of the products that witness strong sales growth. In addition, revenue for paper towels and other necessities partly increased thanks to online delivery services.