Impact of Entry Ban Imposed on Foreigners to Business in Japan
RESULTS OF THE 7th ACCJ COVID-19 MEMBER SURVEY (AUG 18 — 21, 2020)
64% OF RESPONDENTS SAY THAT THE ENTRY BAN WILL AFFECT FUTURE INVESTMENT DECISIONS
Our latest survey highlights how ACCJ member companies are significantly impacted by the entry ban the Japanese government imposed on foreign nationals. According to the survey, 91% report that the entry ban has placed a burden on their business.
Many members report that key personnel from their companies will not be returning to Japan, projects cannot be completed, and new projects and investments have stalled or been diverted elsewhere. While many members recognize that actions are necessary to curb the spread of the coronavirus, restricting entry into Japan only for foreigners has reinforced perceptions of discrimination and makes Japan less favorable for conducting business.
Download a PDF of the survey results here or read the results below.
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To what extent does the entry ban imposed on foreigners entering Japan burden your business and/or operations?
Foreign companies maintain some of their regional HQ functions in Japan. To what extent do the entry bans imposed on Asian countries burden your business?
Which areas of your company are specifically affected by the entry ban?
Other areas of impact mentioned:
Visits with CEOs or leaders have ceased
Key employees have decided not to return to Japan
Productivity is impacted
28%
We cannot develop new or continue with ongoing projects, therefore our (potential) turnover is endangered
21%
Important/essential leadership or expert positions in the company cannot be filled
24%
Other
8%
We have suspended internal (development) projects because necessary specialists cannot come to Japan
5%
Manufacturing/service and quality are endangered
8%
Did not answer
3%
Board meetings/audits cannot take place
4%
We cannot execute/ finalize orders and therefore face delays
Do you anticipate an increased loss of revenue solely due to the entry ban for foreigners into Japan?
How is the ban impacting your ability to provide goods/services to Japanese clients?
If you answered that there would be an impact, please describe:
Lack of face-to-face interactions makes clients less trusting and willing to conduct business
Cannot fill key positions needed to service clients adequately and with high quality expected by Japanese clients
Foreign-based employees cannot travel to Japan to serve clients
Quality of service delivery has decreased, and clients are unhappy
Will the re-entry ban affect future investment decisions by your company?
If yes, please describe how this ban may impact future investment:
Loss of trust that Japan is reliable business environment, or commitment to attract foreign investment
Increased risk of doing business in Japan will impact decision-making
Less revenue coming in, so less investment possible
Reconsider doing business here
Reluctance or inability to place foreign staff in Japan
Reducing operations in Japan
Due to the current situation, employees may be forced to maintain two households in parallel. Companies continue to pay housing, health and other social insurance contributions for their staff (banned from returning to Japan).
How do you think about relief measures, such as compensation, tax relief, etc. for affected employees and for your company?
9%
We expect double cost for housing, overseas accommodation, allowances and/or insurances
68%
We have no double cost for housing, overseas accommodation, allowances and/or insurances
17%
We expect appropriate actions by the Government of Japan, such as compensation and tax relief
5%
Did not answer
How does the entry ban impact your perception of Japan as a place to do business?
In this open-ended question, respondents indicated disappointment with the ban and commented that the entry ban has reinforced the negative perception that Japan does not provide a level playing-field for business and discriminates against foreign workers. Specifically, respondents mention that this negative perception:
Will prevent Japan from being a central financial hub in Asia;
Will have great difficulty attracting foreign talent; and
Has ruined the goodwill that Japan was working diligently to foster.
“Very negative impact. This ban is making long term foreign residents want to leave permanently and is limited the number of new foreigners who will consider living in Japan in the future.”
“I now view Japan as a terrible place to do business and intend to minimize my operations in Japan and steadily shift any functions outside of Japan.”
“The entry ban is very damaging to my perceptions and many overseas people considering relocation to Japan. It looks like Japan hates foreigners and discriminates based on nationality.”
“It is disappointing more than anything - at the least Japan could treat foreign residents the same way as they treat nationals, as do most other countries.”
Please identify your company sector