What are the main reasons why Kyoto, Japan may go bankrupt within 10 years? The global epidemic situation is grim, leading to serious economic crisis in some cities dominated by tourism. Kyoto, Japan is one of them. What are the main reasons why Kyoto, Japan may go bankrupt within 10 years?
What are the main reasons for the bankruptcy of Kyoto in Japan within 10 years? 1 Japan gives the impression that it is prosperous and thriving, but the mayor of Kyoto said that Kyoto, Japan, will go bankrupt in 10 years. Why? It turns out that Japan's tourism industry is bleak because of the epidemic, so its economy is greatly affected.
Insolvency, not only enterprises, cities and countries may face bankruptcy. Xizhang, Hokkaido, was once Japan's "coal mine city" and flourished for a while. Later, due to the adjustment of energy structure, Xizhang City lost its pillar industry and had a heavy burden. In 2007, it declared bankruptcy. When a city with a population of 1 1 10,000 went bankrupt, only 1.3 million people remained.
The city we are going to talk about today is Kyoto, Japan. This famous tourist city may face the same dilemma as Xizhang City. Why is this?
People's impression of Kyoto is an ancient capital with many tourists, but in June this year, the mayor of Kyoto said that Kyoto might go bankrupt. Generally speaking, urban bankruptcy occurs when the debt cannot be repaid, that is, when the city's debt is far higher than its assets, it can only seek bankruptcy to protect itself. It is not uncommon for cities and even countries around the world to go bankrupt, but how did all this happen in the famous Kyoto?
The number of tourists in Kyoto has exceeded 6.5438+million for many years in a row, and dropped to 450,000 in 2020. Tourism accounts for 14% of Kyoto's GDP, which is about three times that of Japan. In fact, the Kansai region of Japan, including Kyoto, has long relied too much on tourism, especially during the epidemic.
What are the main reasons why Kyoto, Japan may go bankrupt within 10 years? The global epidemic situation is still grim, which has also led to serious economic crisis in some cities with tourism as the mainstay. Kyoto, Japan is a tourist city. The data shows that the number of tourists in Kyoto has exceeded10 million for many years. However, in 2020, the epidemic caused the number of tourists in the city to drop sharply to 450,000. Tourism accounts for 14% of Kyoto's GDP, which is about three times that of Japan.
In addition to Kyoto, Kansai, Japan, has long been too dependent on tourism, especially in the epidemic.
The decline of tourism led to the depression of local catering industry, and the number of employees continued to decline. People in the Japanese catering industry admit that compared with before the epidemic, the number of guests in the catering industry dropped to about 10% in severe cases and less than 50% in good times.
In the face of severe economic crisis, Kyoto Mayor Daisaku Menchuan said earlier that Kyoto may go bankrupt. He said that Kyoto is now heavily in debt and may go bankrupt within 10 years.