The Chinese government has called for its citizens to refrain from traveling to Japan. While this has raised concerns about the potential consequences of a decrease in Chinese visitors, CBRE believes any impact on the overall inbound tourism market is likely to remain limited. This is because the proportion of group tours by Chinese visitors to Japan, which used to account for around 50% of arrivals from this market, has fallen to 15.6%, indicating that the inbound market has become more resilient to changes in diplomatic relations. At the same time, the weak yen and attractive prices for foreigners are supporting an increase in visitor arrivals from other markets. The increase in demand from visitors, particularly from Europe, the U.S., and Australia—all of which are regions characterized by longer stays and rising shopping expenditure—should compensate for the decrease in inbound demand from Chinese visitors. Any negative impact on the hotel and retail sectors in the Japanese real estate market should therefore be mild.

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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

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