New Coronavirus to Erode Japan's Income by 624 B. Yen: Think Tank

Economy

Osaka, Feb. 12 (Jiji Press)--The ongoing new coronavirus outbreak is likely to lead to a drop of 624.4 billion yen in spending by visitors to Japan, a private think tank said Wednesday.

Retailers, such as department stores and drugstores, and hotels would be hit particularly hard by a plunge in the number of foreign visitors, including from not only China but other countries, the Resona Research Institute said.

The think tank of the Resona Holdings Inc. <8308> group estimated the loss to the Japanese economy under the assumption that the novel coronavirus will continue to spread until around April as a virus causing SARS, or severe acute respiratory syndrome, did in 2002-2003.

The number of visitors is expected to keep declining until May, resulting in a fall of 238.9 billion yen in spending on goods and 171.9 billion yen for lodging, it said.

Tokyo and six other Kanto prefectures in eastern Japan would suffer a loss of 218.1 billion yen and Osaka and five other Kansai prefectures in the west 190.5 billion yen, it added.

[Copyright The Jiji Press, Ltd.]

Jiji Press