Originally posted by kaister:
Yes and more! I was told by my friend working in a jewellery shop that a small group of PRC tourists can sweep up up to 60k of goods at one go

I think the difference is that Jap tourists have more money but PRCs are a lot more willing to spend.
WHICH country has the world's most undervalued currency? Most people would answer China. Yet by many measures the Japanese yen is cheaper than the Chinese yuan. It cannot be long before America and Europe put Japan in the dock, and accuse it of keeping its currency unfairly low.
since 2001 the Bank of Japan (BoJ) had been printing loads of money in order to defeat deflation. An increased supply of yen relative to that of other currencies pushed down its price. But the yen's softness this year is a puzzle. Since the BoJ abandoned “quantitative easing” in March, Japan's monetary base has withered. Deflation has gone away, and in July the BoJ raised interest rates, which had been stuck at zero for five years. Furthermore, Japan had a whopping current-account surplus of $165 billion in the year to July (the latest figure for China, for 2005, is only $161 billion, although it is expected to rise in 2006). In many respects, the yen should be climbing.
Instead, since March it has fallen slightly against the dollar and by as much as 8% against the euro, which fetched a record ¥150 earlier in September, before edging back up a bit. Since mid-2001 the yen has fallen by around 35% against the euro, while against the weaker dollar it is little changed. Japanese exporters have also gained competitiveness relative to South Korea, where the won has risen strongly against the dollar during the past year.
Not only is the yen cheap in nominal terms, but many years of falling prices in Japan have made it even more competitive. Its real trade-weighted value fell this month to its lowest since 1982 (see chart). The latest update of The Economist's Big Mac index (see article) showed that the yen was by far the most undervalued of the developed world's currencies—ie, hamburgers are cheapest in Tokyo. Using a more sophisticated model, Stephen Jen, of Morgan Stanley, reckons that the yen is 12% undervalued against the dollar, whereas the yuan is only 7% too weak. Against the euro, the yen is almost 30% below its fair value.