Tokyo, 17 October (Argus) — Inbound tourism in Japan is booming, and Tokyo is ramping up the enhancement of supply infrastructure to meet the stable demand for aviation fuel in the country, especially given supply disruptions in 2024.
Japan welcomed 31.7mn visitors over January-September, up by 18pc from the same period in 2024, data from Japan National Tourism Organisation (JNTO) released on 15 October show. This is the largest number of visitors the country has had over the same period. Visitors to Japan totalled 36.9mn in 2024, the largest annual total ever, according to the JNTO data.
Tokyo further aims to attract 60mn visitors in 2030, according to Japan Tourism Agency. The uptrend in inbound tourism to Japan is likely to sustain the country’s jet fuel demand in coming years, despite continuous downtrends in consumption for other oil products such as road fuels. Japan’s bonded jet fuel sales, or supplies for international flights, totalled 42mn bl over January-August, up by 7.7pc from the same period a year earlier, according to the Petroleum Association of Japan.
But the rise in demand from increased tourism will not directly result in significant growth in the country’s domestic jet fuel consumption. This is partly because of “ongoing trends in aircraft downsizing and improvements in fuel efficiency,” Japan’s trade and industry ministry (Meti) said in its latest annual outlook for domestic oil products demand released in April.
Meti expects the country’s domestic jet fuel requirement is likely to remain mostly stable or increase slightly in the coming years compared with April 2024-March 2025 levels. Domestic demand for jet fuel will be 27mn bl in 2029-30, up by 0.9pc over five years from the 2024-25 level, according to Meti’s outlook. This is expected in spite of a 11pc drop in overall oil products demand over the same period.
Meti is moving to bolster the country’s domestic supply network in view of the stable jet fuel demand. Meti indicated ¥230mn ($1.5mn) to fund a project aimed at strengthening jet fuel infrastructure as part of the ministry’s budget request for the 2026-27 fiscal year.
The initiative will financially support the conversion of existing oil tanks into jet fuel tanks at five refiner sites across Japan, including domestic refiner Eneos’ Negishi refinery in east Japan and fellow refiner Taiyo Oil’s facility in southernmost Okinawa prefecture, a Meti official told Argus.
These measures come after the jet fuel supply disruptions in Japan in 2024. The country’s jet fuel supply chain was proved to be vulnerable especially at regional airports, where shortages of transportation such as fuel lorries and vessels hindered smooth deliveries of the fuel. Some foreign airlines were even forced to dismiss plans to launch new Japan-bound flight routes because of jet fuel availability concerns.
Meti has since supported deployment of additional lorries and vessels that can deliver jet fuel domestically, including conversion from existing ocean-going ships, and the situation has improved, a Meti official said.
By Kohei Yamamoto
