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Flight bookings between Australia and Tokyo have soared by more than 2,700% since borders reopened and COVID restrictions were lifted last year, according to new data released by Flight Centre Travel Group’s flagship SME business Corporate Traveller. The figures show that Japan’s capital city has become a popular destination for SMEs in the Southern Hemisphere.

The insights cover flight bookings made between 01 July 2019-28 February 2020 and 01 July 2022-29 February 2023, revealing a significant surge in business travel between the two countries. Japan was Australia’s third-largest trading partner in 2020, with two-way goods and services trade valued at AUD$66.3 billion. Australia’s second-largest export market was valued at AUD$46.4 billion in 2020, accounting for 10.6% of total exports.

Tom Walley, the Global Managing Director of Corporate Traveller, commented, “Japanese SMEs accounted for 99.7% of all businesses and employed 32 million individuals, or approximately 68.8% of the private sector labour force, in 2016 – Aussie SMEs have realised the potential.” He added that “the pandemic has given SME businesses a real chance to evaluate where they want to do business and who they want to do it with, and it’s clear the rush has been to Japan – Tokyo in particular.”

The Australian economy relies heavily on SMEs, which make up 99.8% of all businesses as of June 2022. Agriculture, forestry, and fishing are the leading industries in 2021-22, with a tight labour market driving companies to look further afield for talent. Meanwhile, meetings, events, and conferences are returning, making Tokyo a historical favourite for corporations.

According to Walley, there has also been a recent trend towards ‘bleisure’ travel, with savvy SMEs combining valuable meetings with a holiday. He noted that “it’s well-known that Japanese buyers are drawn to premium, high-end goods and services that offer a high return on trade investment – the country is also known for innovation and quality – so there are an awful lot of parallels between Aussie SMEs and the Japanese.”

As Australia and Japan strengthen their economic ties, SMEs will be at the forefront of this growth. The increase in travel between the two countries reflects the potential for SMEs to expand their businesses and tap into new markets. With Tokyo emerging as a leading destination for SMEs, the future looks bright for those willing to take the leap and explore new opportunities.