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Japan's economy is only going to get worse. I don't think they've resolved their population decline and aging demographics.
If only they weren't so xenophobic, then they could maybe receive more immigrants (would love to work there myself)
In the general public I don't think it's pure xenophobia, but in large parts a fear of not being able to communicate. The behavior they expose then is almost indistinguishable from xenophobia and for the receiving person in no way better, though when a foreign looking person is able to communicate, most hesitations will fall away.
I know that this is obviously not applicable to 100% of the population, but so is the other belief. There are obviously also die-hard foreigners hating nationalists, as in every country.
Third place gets a crown…?