What is the main reason why Kyoto, Japan may go bankrupt within 10 years?

What is the main reason why Kyoto, Japan may go bankrupt within 10 years?

What is the main reason why Kyoto, Japan may go bankrupt within 10 years? The severe global epidemic situation has led to some tourism-based cities are experiencing a severe economic crisis. The Japanese city of Kyoto is one of them. What is the main reason why Kyoto, Japan may go bankrupt within 10 years? What is the main reason why Kyoto, Japan may go bankrupt within 10 years? 1

Japan gives people the impression of prosperity and prosperity, but the mayor of Kyoto said that Kyoto, Japan may go bankrupt within 10 years. What is this? Why? It turns out that due to the impact of the epidemic, Japan's tourism industry has been bleak, and the economy has been greatly affected.

Insolvent, not only companies, but also cities and countries may face bankruptcy. Yubari City in Hokkaido was once Japan's "coal mining city" and prospered for a while. Later, due to the adjustment of the energy structure, Yubari City lost its pillar industries and suffered a heavy burden. It declared bankruptcy in 2007. When a city of 110,000 people went bankrupt, only 13,000 people remained.

The city we are going to talk about today is Kyoto, Japan. This famous tourist city may face the same dilemma as Yubari City. why is that?

People’s impression of Kyoto is that of an ancient capital with many tourists. But in June this year, the mayor of Kyoto said that Kyoto might go bankrupt. Generally speaking, city bankruptcy occurs when debts cannot be repaid, that is, when the city's debts are much higher than its assets, it can only seek bankruptcy self-protection. Across the world, it's not uncommon for cities to go bankrupt and even countries to go bankrupt, but how did this all happen in the famous Kyoto?

The number of tourists in Kyoto has exceeded 10 million for many years, and dropped to 450,000 in 2020. Tourism accounts for 14% of Kyoto's GDP, about three times the Japanese average. In fact, the Kansai region of Japan, including Kyoto, has long been too dependent on tourism, especially during the epidemic. What are the main reasons why Kyoto, Japan may go bankrupt within 10 years? 2

The global epidemic situation is still severe, which has also led to a serious economic crisis in some tourism-focused cities. Kyoto City in Japan is a tourist city. Data shows that the number of tourists in Kyoto has exceeded 10 million for many years in a row. However, the epidemic in 2020 caused a sharp drop in the number of tourists in the city, plummeting to 450,000. Tourism accounts for 14% of Kyoto's GDP, which is about three times the Japanese average.

In addition to Kyoto, the Kansai region of Japan has long been overly dependent on tourism economically, which has been particularly highlighted during the epidemic.

The decline of the tourism industry has led to a depression in the local catering industry, and the number of employees continues to decline. People in the Japanese catering industry frankly said that compared with before the epidemic, the number of customers in the catering industry dropped to about 10% in severe times, and less than 50% in good times.

Faced with a severe economic crisis, Kyoto Mayor Daisaku Kadokawa previously stated that Kyoto may go bankrupt. He said that Kyoto is now heavily in debt and may go bankrupt within 10 years.