Australia-based travel insurer 1Cover has reported a significant rise in sales of Japan-related travel insurance policies, attributing the boom to a weakened yen and favorable exchange rates.
The company’s latest figures show a 61% increase in travel insurance sales for Japan compared to pre-pandemic levels. The uptick comes as Japan solidifies its position as one of the top overseas destinations for Australian travelers, with visitor numbers soaring by 126% in the year leading up to June 2023, according to data from the Australian Bureau of Statistics (ABS).
The rising influx of Australian tourists to Japan is closely tied to the strength of the Australian dollar against the yen, making travel to the country more affordable. This shift in exchange rates has acted as a catalyst, encouraging more Australians to take advantage of the favorable conditions and visit Japan.
Internal data from 1Cover indicates that the demand for travel insurance related to Japan has consistently surpassed pre-pandemic levels throughout 2024. The company noted that January, traditionally the peak season for winter sports in Japan, saw a 24% rise in insurance sales compared to 2019. Additionally, July figures showed a 61% increase, benefiting from the strong Australian dollar and favorable currency conditions.
Natalie Smith, head of travel insurance at 1Cover, emphasized that Japan’s growing appeal aligns with broader travel trends among Australian tourists.
“Japan is not only easily accessible, safe, and appealing to all age groups, but the current favorable exchange rate also makes it a more affordable destination,” Smith said. “Despite tighter budgets, Australians remain eager to travel, and Japan ticks all the right boxes.”
With the yen continuing to trade weakly against the Australian dollar, travel to Japan is expected to remain a popular choice for Australians seeking both affordability and adventure.
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