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White Paper on in , 2019 (Summary)

Japan Tourism Agency June 2019 Composition of White Paper on Tourism in Japan, 2019

The White Paper on Tourism in Japan is submitted to the Diet every year in accordance with Article 8 of the Basic Act for Promoting a Tourism-Oriented Country. It consists of the following four parts.

Part I Tourism Trends in 2018

Chapter 1 Global Tourism Trends Chapter 2 Tourism Trends in Japan

Part II (Theme Chapter) Economic Effects of Tourism Expanding across Japan

Chapter 1 Impact of Increase in International Visitors to Japan on the Japanese Economy Chapter 2 Impact of Increase in International Visitors to Japan on Tourist Destinations Chapter 3 Impact of Natural Disasters on

Part III Measures Taken in FY 2018

Chapter 1 Enhance the Attractiveness of Tourism Resources to be the Foundation for "Regional Revitalization" Chapter 2 Innovate the Tourism Industry to Enhance International Competitiveness and to Become Japan's Core Industry Chapter 3 Create an Environment Where All Travelers can Enjoy Sightseeing Comfortably Without Stress

Part IV Measures to be Taken in FY 2019

Chapter 1 Environmental Development for Setting Specifications that Foreigners can Truly Enjoy Chapter 2 Development of New Regional Tourism Contents Chapter 3 Appropriate Role Sharing and Strengthening Cooperation between the Japan National Tourism Organization and Regional Organizations (Local Governments and Destination Management/Marketing Organization) Chapter 4 Other Measures Contributing to Increase in Consumption and Visitors in Outlying Areas 1 [Part I] Tourism Trends in 2018

 Global Tourism Trends in 2018……………………………………………………………………. 3

 Tourism Trends in Japan in 2018 (Situation of Travel to Japan) ………………………………. 6

 Tourism Trends in Japan in 2018 (Situation of Japanese Overseas Travel and Domestic Trips) ………………………………………………………………………..... 8

 Tourism Trends in Japan in 2018 (Situation of Overnight Trips) ………………………………. 10

 Tourism Trends in Japan in 2018 (Tourism Trends in Regional Areas) ……………………..... 13

2 [Part I] Global Tourism Trends in 2018

 According to the global tourism trends announced by the United Nations World Tourism Organization (UNWTO), the number of international tourists in 2018 increased by 74 million from the previous year to 1,430 million (up 5.6% from the previous year).  By region, the Asia-Pacific region has increased its share in both arrivals and departures in recent years.

(Figure I-2) The Number of International Tourists (Figure I-5) The Number of International Tourists by Region of Origin

5.5% (100 million (億人) people) 14.0 2008 53.8% 20.0% 15.9% 4.7% 14 13.3 4.7%

12.4 2013 51.7% 23.2% 15.4% 5.0% 11.9 12 11.4 4.5% 11.0 2018 50.8% 24.4% 15.5% 4.8% 10.4 10.0 10 9.5 0% 20% 40% 60% 80% 100% 9.19.3 8.9 Europe Asia-Pacific region Americas Middle East Africa 8.6 8.1 8 7.6 3.0% 7.07.0 2007 55.4% 19.8% 16.6% 2.8% 6.86.8 6.3 3.1% 6 2012 51.9% 22.9% 16.6% 3.1%

3.0%

4 2017 48.0% 24.9% 16.7% 3.2%

(year)

06 99 01 02 03 04 05 07 08 09 10 11 12 13 14 15 16 17 18 2000 0% 20% 40% 60% 80% 100% Europe Asia-Pacific region Americas Middle East Africa Unknown Source: Japan Tourism Agency (JTA) document based on data of the UNWTO 3 [Part I] Global Tourism Trends in 2018

 In the "Ranking of the Number of International Visitors by Country/Region" in 2017, Japan ranked 12th, up from 16th in the previous year, with 28.69 million. Japan ranked 3rd in Asia, overtaking and .  In the "Ranking of the Number of International Visitors by Air or Sea," Japan ranked 8th (2nd in Asia) with 28.69 million.  The number of international visitors to Japan in 2018 (31.19 million) was equivalent to 11th in the "Ranking of the Number of International Visitors by Country/Region" and 6th in the "Ranking of the Number of International Visitors by Air or Sea" in 2017.

(Figure I-6) Ranking of the Number of International Visitors by Country/Region (Figure I-7) Ranking of the Number of International Visitors by Air or Sea (2017) (2017) (10,000 people) (10,000 people) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 France 8,692 Spain 6,854 Spain 8,187 U.S.A. 4,898 U.S.A. 7,694 ★Italy 3,575 6,074 ★U.K. 3,485 31.19 million international Italy 5,825 France 3,333 visitors came to Japan in (★Japan) 3,119 Mexico 3,929 2018. (All international visitors U.K. 3,061 3,765 to Japan visit by air or sea.) Turkey 3,760 ★Turkey 2,895 Germany 3,745 ★Japan 2,869 Thailand 3,548 ★China 2,768 31.19 million international visitors came to (Japan) 3,119 Greece 1,892 Japan in 2018. Mexico 1,855 Austria 2,946 Japan ranked 8th in the world and 2nd in Japan ranked 12th in the world and 3rd in Asia ★Hong Kong 1,854 Japan 2,869 Asia. Hong Kong 2,789 ★ 1,531 *The ranking includes only the countries Greece 2,719 ★Macau 1,398 Malaysia 2,595 1,334 and regions where the number of ★ Russia 2,439 1,253 international visitors is calculated and Saudi Arabia Portugal 2,120 1,251 published for each mode of transportation ★Sweden Canada 2,088 1,154 (i.e., by air, sea or land). Canada 1,134 Poland 1,826 ★ 1,117 Netherlands 1,792 ★ 1,074 Macau 1,726 Morocco 1,010 Saudi Arabia 1,611 ★Russia 894 * U.A.E. 1,579 ★ 882 Hungary 1,579 Ireland 872 Croatia 1,559 India 806 India 1,554 Malaysia 767 Ukraine 1,423 662 Singapore 1,391 ★Croatia 558 South Korea 1,334 Poland 545 Indonesia 1,295 ★Hungary 544 Vietnam 1,292 ★Egypt 469 ★ Czech Republic 1,281 South Africa 307 Denmark 1,174 ★Ukraine 226 Morocco 1,135 Germany Switzerland 1,113 Austria Taiwan 1,074 Netherlands Ireland 1,034 Portugal no data South Africa 1,029 Czech Republic Bulgaria 888 Denmark Australia 882 Switzerland

Source: JNTO document based on data of the UNWTO. Source: Japan National Tourism Organization (JNTO) document based on data of the UNWTO. Note 1:Figures shown above are provisional as of May 2019. Note 1:The number of international visitors is calculated and published by different statistical criteria for each country and region. Therefore, it is necessary to note the difference of the statistical criteria of each Note 2:In countries marked with ★, figures for 2017 are unannounced. Therefore, we used figures for 2016. country when strictly comparing. Note 3:Figures for the United Arab Emirates are for Dubai only and are based on data collected through September 2018. Note 2:Figures shown above are provisional as of January 2019. Note 4:Except for Japan, Russia, South Korea, Vietnam, Taiwan, and Australia, the number of international visitors means the number of international visitors who had at least an overnight stay in Note 3:Except for the countries/regions marked with ★, the number of international visitors means the number of international visitors who had at least an overnight stay in the country/region they visited. the country/region they visited. Note 4:Green in the graph indicates a country/region belonging to Asia. Note 5:Rankings are subject to change depending on the timing of data collection, because data may be updated or modified from time to time. Note 5:In countries and regions where figures for 2017 are unannounced or unknown, we used figures for the latest year for which the statistics are available. Note 6:The number of international visitors is calculated and published according to different statistical criteria for each country and region, so careful comparison is required. Note 6:The figures adopted in the graph are the number of international visitors traveling by air and sea, and exclude those traveling by land (by car, etc.). (For example, the number of foreign crew members is not included in Japanese statistics, but it is included in the statistics of France, Spain, China, South Korea, etc.) Note 7:The number of international visitors by air or sea is unknown for Germany, Austria, the Netherlands, Portugal, Czechia, Denmark, and Switzerland because data on the means of transportation used by international visitors are unavailable. 4 Note 8:Rankings are subject to change depending on the timing of data collection, because data may be updated or modified from time to time. [Part I] Global Tourism Trends in 2018

 In the "Ranking of Receipts by Country/Region" in 2017, Japan was placed the same rank as the previous year (11th (4th in Asia)) although the amount of receipts increased to $34.1 billion.  In the "Ranking of International Tourism Expenditures by Country/Region," Japan ranked 18th (6th in Asia), down from 16th (5th in Asia) in the previous year, with $18.2 billion.  The amount of international tourism receipts of Japan in 2018 ($41.1 billion) was equivalent to 8th in the "Ranking of International Tourism Receipts by Country/Region" in 2017. The amount of international tourism expenditures of Japan in 2018 ($20.1 billion) was equivalent to 16th in the "Ranking of International Tourism Expenditures by Country/Region" in 2017.

(Figure I-8) Ranking of International Tourism Receipts by Country/Region (2017) (Figure I-9) Ranking of International Tourism Expenditures by Country/Region (2017) (billion USD) (billion USD) 0 200 400 600 800 1,000 1,200 0 500 1,000 1,500 2,000 2,500 3,000

U.S.A. 1,107 China 2,579 Spain 681 U.S.A. 1,350 France 607 Germany 891 Thailand 569 U.K. 707 U.K. 490 France 414 Italy 442 Australia 344 Australia 417 Canada 318 (Japan) 411 $41.1 billion in 2018 South Korea 317 Germany 398 Russia 311 China 386 Italy 277 Macau 356 Japan ranks 11th in the world and 4th Hong Kong 254 Japan 341 Singapore 246 Hong Kong 333 in Asia. Spain 223 India 274 Netherlands 215 Turkey 225 Belgium 207 Mexico 213 (Japan) 202 $20.2 billion in 2018 U.A.E. 210 Brazil 190 Austria 205 India 184 Canada 203 Japan 182 Japan ranks 18th in the world and 6th in Asia Singapore 197 Taiwan 180 Malaysia 183 U.A.E. 176 Portugal 171 Saudi Arabia 173 Netherlands 166 Sweden 170 Greece 165 Switzerland 164 Switzerland 163 Norway 162 Sweden 141 Kuwait 125 South Korea 134 Philippines 119 Indonesia 131 Argentina 114 Poland 128 Iran 113 Belgium 125 Mexico 108 Taiwan 123 Austria 107 Saudi Arabia 121 Malaysia 107 Croatia 109 Thailand 105 New Zealand 106 Denmark 98 Russia 89 Qatar 96 Vietnam 89 Poland 89 South Africa 88 Indonesia 83 Denmark 80 Iraq 81 Egypt 78 Ukraine 71 Lebanon 76 Israel 71 Morocco 74 Ireland 66

Source: JNTO document based on data of the UNWTO and national tourism offices from each country. Source: JNTO document based on data of the UNWTO and national tourism offices from each country. Note 1: Figures shown above are provisional as of January 2019. Note 2: International tourism receipts don’t include international passenger fares. Note 1: Figures shown above are provisional as of January 2019. Note 3: Data on international tourism receipts may be updated or modified from time to time. Note 2: International tourism expenditures don’t include international passenger fares. Calculated values of international tourism receipts are affected by changes in the exchange rates of foreign currencies to Note 3: Data on international tourism expenditures may be updated or modified from time to time. the U.S. dollar. Calculated values of international tourism expenditures are affected by changes in the exchange rates of foreign currencies to the U.S. dollar. 5 Thus, rankings are subject to change depending on the timing of data collection. Thus, rankings are subject to change depending on the timing of data collection. [Part I] Tourism Trends in Japan in 2018 (Situation of Travel to Japan)

 The number of international visitors to Japan in 2018 was 31.19 million (up 8.7% from the previous year).  The number of international visitors to Japan from Asia reached 26.37 million (84.5% of the total). The number of international visitors to Japan from East Asia reached 22.88 million (73.4% of the total), including 3.33 million (10.7% of the total) from 6 major ASEAN countries. The number of international visitors to Japan from North America was 1.86 million. The number of international visitors to Japan from 5 major European countries (UK, France, Germany, Italy, and Spain) was 1.12 million.

(Figure I-10) The Number of International Visitors (Figure I-11) Breakdown of the Number of International Visitors(2018)

(10,000(万人) people) 3,500 3,119 (10,000 people) 3,000 2,869

2,500 2,404

1,974 2,000

1,500 1,341

1,036 1,000 835 835 861 836 733 614 673 679 622 521 500

0 Source: JTA document based on data of the JNTO. Note 1:Values in parentheses indicate share as a percent of all international visitors to Japan. Note 2:“Others” is Asian, European, or other countries/regions not otherwise shown in the pie chart. Source: JTA document based on data of the JNTO. Note 3:Totals may not be exact due to rounding. 6 [Part I] Tourism Trends in Japan in 2018 (Situation of Travel to Japan)

 The tourism consumption by international visitors in 2018 reached a record high of 4.5189 trillion yen. It has increased for the seventh consecutive year since 2012 (1.1 trillion yen).  By nationality and region, China ranked first at 1.545 trillion yen and accounted for 34.2% of the total amount, followed by South Korea at 588.1 billion yen (13.0%), Taiwan at 581.7 billion yen (12.9%), Hong Kong at 335.8 billion yen (7.4%), and the United States at 289.3 billion yen (6.4%). The tourism consumption by international visitors from the countries and regions above accounted for 73.9% of the total.

(Figure I-13) Changes in Tourism Consumption by International Visitors (Figure I-14) Tourism Consumption by International Visitors Broken Down by Country/Region

Philippines Indonesia Germany Italy Spain India Russia Tourism consumption by 59.1 55.8 40.9 33.4 28.1 24.7 17.7 year billion billion billion billion billion billion billion international visitors yen yen yen yen yen yen yen Canada 59.4 billion yen 2012 1.0846 trillion yen

2013 Malaysia 1.4167 trillion yen 63.9 billion yen Other 237.9 billion yen 2014 2.0278 trillion yen France 65.6 billion yen China 2015 1,545 billion yen 3.4771 trillion yen Tourism United Kingdom consumption by 2016 3.7476 trillion yen 72 billion yen international visitors to Japan in 2018 Vietnam United States (revised values) 2017 4.4162 trillion yen 73 billion yen 289.3 billion yen 4.5189 trillion yen

Hong Kong Singapore 2018 335.8 billion 4.5189 trillion yen 75.3 billion yen yen South Korea 588.1 billion yen Thailand Taiwan Source: International Visitor Survey (JTA) 140.7 581.7 billion yen Note 1: In the past, the survey focused mainly on passengers using airports, but in light of the Australia billion rapid increase in the number of cruise passengers, who tend to stay for a short period 131.5 billion yen yen of time, the survey has been conducted for these passengers as well since 2018. Their answers were included in the survey results. The tourism consumption in 2018 estimated by the conventional estimation method is 4.8 trillion yen. Note 2: The percentages are the percentage to the total tourism consumption by international visitors. 7 [Part I] Tourism Trends in Japan in 2018 (Situation of Japanese Overseas Travel and Domestic Trips)

(Japanese Overseas Travel)  In 2018, the number of Japanese overseas travelers increased for the third consecutive year, to 18.95 million (up 6.0% from the previous year). (Domestic Trips)  In 2018, the number of Japanese nationals who took overnight trips was 291.05 million, and the number of Japanese nationals who took domestic one-day trips was 270.73 million.

(Chart I-25) The Number of Japanese Overseas Travelers (Figure I-29) Changes in the Total Number of Japanese Domestic Overnight Trips and Domestic One-Day Trips (10,000 (万人)people) 2,000 (10,000 people) 1,895 1,900 1,849 34,000 1,789 32,566 32,333 1,800 1,753 32,042 1,740 1,747 31,555 1,729 1,712 32,000 31,299 1,683 1,699 32,418 1,700 1,664 1,690 31,542 1,621 31,053 29,734 1,599 30,000 29,105 1,600 1,545 29,720 29,788 29,173 1,500 28,000

27,073 1,400 26,000

1,300 24,000

1,200 Overnight trips 22,000 1,100 One-day trips 20,000 1,000 2012 13 14 15 16 17 18

Source: JTA document based on data of the JNTO. Source: National Tourism Survey (JTA) 8 [Part I] Tourism Trends in Japan in 2018 (Situation of Japanese Overseas Travel and Domestic Trips)

 In 2018, Japanese domestic tourism consumption was 20.5 trillion yen (down 3.0% from the previous year).  In 2018, domestic tourism consumption by Japanese and international visitors was 26.1 trillion yen.  Within that, domestic tourism consumption by international visitors accounted for 17.3%.

(Figure I-30) Japanese Domestic Tourism Consumption (Figure I-31) Domestic Tourism Consumption in Japan

(trillion yen) 26.1 trillion yen 25

21.0 21.1 Domestic trips by 20.4 20.2 20.4 20.5 19.7 19.4 international visitors to Japan 20 18.4 4.5 trillion yen(17.3%) 4.9 5.0 5.1 4.8 4.6 4.7 5.0 4.4 4.5 Japanese overseas travel 15 (Domestic consumption) 1.1 trillion yen(4.2%)

10 Japanese domestic same- 16.0 16.1 Japanese domestic 15.4 15.0 15.4 15.8 15.8 day trips 14.8 13.9 4.7 trillion yen overnight trips 5 (17.9%) 15.8 trillion yen(60.6%)

0 2010 11 2012 13 14 15 16 17 18

Overnight trips One-day trips Total domestic trips

Source: National Tourism Survey (JTA) Sources: National Tourism Survey (JTA) and International Visitor Survey (JTA) 9 [Part I] Tourism Trends in Japan in 2018 (Situation of Overnight Trips)

 In 2018, the total number of guest nights in and Ryokans (Japanese-style ) in Japan decreased to 509.02 million (down 0.1% from the previous year). Within that, the total number of guest nights of Japanese was 420.43 million (down 2.2% from the previous year), and the total number of guest nights of international visitors was 88.59 million (up 11.2% from the previous year).  In 2018, the total number of guest nights of international visitors in outlying areas increased by 11.3% from the previous year, exceeding the growth in the 3 major metropolitan areas. The share of outlying areas was 41.0%.

(Figure I-32) Total Number of Guest Nights (Japanese/International Visitors) (Figure I-33) Guest Nights of International Visitors in 3 Major Metropolitan Areas and in Outlying Areas (100 mil. guest nights) (10,000 guest nights) 3 Major Metropolitan Areas 6 7,000 (59.0%) 6,000 (59.0%) 5,223 5.041 5.096 5.090 +11.1% 4.925 5,000 4,703 5 4.659 4.735 4,000 4.395 0.656 0.797 0.886 0.335 0.448 0.694 0.263 3,000 4 2,000 1,000

3 0 2017 2018

(10,000 guest nights) 4.324 4.287 4.385 4.299 Outlying Areas 2 4.132 4.231 4.204 6,000

5,000 (41.0%) (41.0%) 4,000 3,636 1 3,266 +11.3% 3,000

2,000 0 2012 13 14 15 16 17 18 1,000

Total number of guest nights of Japanese visitors Total number of guest nights of international visitors 0 2017 2018

Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) Note 1: Figures for 2018 are preliminary. Note 1: Figures for 2018 are preliminary. Note 2: Figures given above each bar indicate the total number of guest nights of Japanese and international Note 2: “3 major metropolitan areas” refers to 8 prefectures: , Kanagawa, , , Aichi, , visitors. , and Hyogo. “Outlying areas” refers to all other prefectures. 10 Note 3: Values in parentheses indicate the composition rate. [Part I] Tourism Trends in Japan in 2018 (Situation of Overnight Trips)

 The national average for room occupancy rates rose from 60.5% in the previous year to 61.1% in 2018. In particular, the room occupancy rate was high, over 80%, in Tokyo.  By accommodation type, the room occupancy rate for city hotels was 79.9%, that for business hotels was 75.3%, and for Ryokans (Japanese-style inns) it was 39.0%.

(Figure I-35) Room Occupancy Rates (Figure I-36) Room Occupancy Rates by Accommodation Type (YoY changes,%) (YoY changes,%) 90 90%

Tokyo, 80.3% 79.2 78.7 79.5 80 77.3 79.9 Osaka, 79.8% 75.7 72.5 80% 75.3 74.2 74.4 75.3 , 71.5% 70 72.1 69.5 Aichi, 70.6% 67.3 60.3 59.7 60.5 70% 60 57.4 61.1 , 67.1% 54.8 55.2 58.3 57.5 , 66.3% 56.0 56.9 50 52.3 54.0 , 63.6% 60% 48.0 Ishikawa, 62.2% 40 National average, 39.0 61.1% 37.0 37.1 37.5 50% Kagawa, 60.6% 35.5 35.2 30 33.4 Miyagi, 56.3%

20 40% 2012 13 14 15 16 17 18 2012 13 14 15 16 17 18 City hotels Business hotels Total hotels Ryokans (Japanese-style inns)

Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) Note 1:Figures for 2018 are preliminary. Note 1:Figures for 2018 are preliminary. 11 [Part I] Trends in Japanese Tourism in 2018 (Regional Blocks)

 The total number of guest nights of international visitors in the Tohoku and Chugoku regions compared to the previous year, by 34.7% and 21.6%, respectively. Hokuriku-Shin’etsu (up 14.0%), Chubu (up 18.0%), Kinki (up 11.9%), (up 11.3%), and Okinawa (up 13.6%) also exceeded the national average.  The total number of guest nights of international visitors from China was the highest in 4 regions (Hokkaido, Kanto, Chubu, and Kinki), that from South Korea was the highest in 1 region (Kyushu), and that from Taiwan was the highest in 5 regions (Tohoku, Hokuriku- Shin’etsu, Chugoku, Shikoku, and Okinawa).

(Figure I-43) YoY Changes of the Total Number of Guest Nights (Figure I-44) Regional Blocks Breakdown for the Total Number of (Overall/International Visitors) in Japan by Regional Blocks (2018) Guest Nights of International Visitors by Country/Region (2018)

(YoY changes) Total number of guest nights Total number of guest nights of international visitors 40% Thailand,6% China,25% Taiwan,20% South Korea,19% Ohters,21% 34.7% Hokkaido Hong Kong,10% 35% Thailand,5% Taiwan,42% China,16% South Korea,7% Others,25% YoY Changes of the total number of guest nights Tohoku Hong Kong,6% 30% of international visitors: +11.2% South Korea,7% China,27% U.S.A.,11% Taiwan,10% Others,39% Kanto Europe,6% 25% 21.6% China,13% Australia,5% Taiwan,30% Others,37% 20% 18.0% Hokuriku-Shin'etsu Hong Kong,10% South Korea,5%

14.0% 13.6% Hong Kong,6% Thailand,5% 15% 11.9% China,49% Taiwan,11% Others,24% 11.0% 11.3% Chubu South Korea,6% 10% Hong Kong,7% China,30% South Korea,15% Taiwan,12% Others,30% 6.2% Kinki U.S.A.,6% 5.3% 5% 2.9% 2.1% South Korea,11% China,11% 1.3% Taiwan,16% Others,42% Chugoku Europe,11% Hong Kong,9% 0% -0.1% -0.1% Taiwan,26% Hong Kong,18% China,17% South Korea,16%U.S.A.,4% Others,19% -0.8% -1.6% -0.9% Shikoku -5% -2.6% -3.3% U.S.A.,2% YoY changes of the total number of guest nights: -0.1% South Korea,45% Taiwan,17% Hong Kong,13% China,12% Others,12% -10% Kyushu U.S.A.,4% Taiwan,28% South Korea,27% Okinawa China,21% Hong Kong,10% Others,10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) Note 1: Comparison was made between the figures of 2017 (confirmed) and 2018 (preliminary). Note 1: Figures for 2018 are preliminary. Note 2: “Europe” refers to 6 countries: Germany, the United Kingdom, France, Russia, Italy, and Spain. 12 [Part II] Economic Effects of Tourism Expanding across Japan

 Increase in International Visitors in Outlying Areas and Trends in Experience-oriented Consumption…………………………………………………………………………….. 14

 Trends in Employment, Wages, and Productivity in Tourism-related Industries……………………….…….. 17

 Trends in Investment in Tourism-related Industries……………………………………………………………... 19

 Trends in Consumption after Travel to Japan by Country…………………………………………………….... 21

 Impact of Increase in International Visitors to Japan on Tourist Destinations……………………….……….. 22

 Impact of Natural Disasters on Travel………………………………………………………………………..….. 24

13 [Part II] Increase in International Visitors in Outlying Areas and Trends in Experience-oriented Consumption (1)

 In recent years, international visitors visiting areas other than the 3 major metropolitan areas have been increasing. The growing interest of international visitors to Japan in "experience-oriented consumption" is considered one of the factors.

• In 2018, the number of international visitors visiting outlying areas was • International visitors to Japan who focus on "experience-oriented consumption," 1.4 times that visiting only the 3 major metropolitan areas. such as skiing and snowboarding, have a high rate of visiting outlying areas. (Figure II-6) Changes in the Number of International Visitors to Japan by Destination (Figure II-7-1) Rate of International Visitors (General Visitors) Visiting Outlying Areas by (Metropolitan Areas/Outlying Areas) “Activities Carried Out during Stay in Japan” (10,000 people)

Overall Rate of International Visitors (General Visitors) Visiting Outlying 2,000 1,800 people Areas: 54.3% 3 major metropolitan areas only Outlying areas 1,500 1,319 people Skiing and snowboarding 87.4% 1,020 people 950 people 1,000 Soaking in a hot spring 75.0%

oriented Nature and rural village experience tour 74.1%

453 people - 500 383 people Other sports (Golf, marine sports, etc.) 73.1% Enjoying the season (Cherry blossom viewing, autumn 71.9% 0 leaves, snow, etc.)

2012 2015 2018 “Experience Staying at a (Japanese-style ) 70.6% visitors visiting outlying areas outlyingvisitingvisitors • The percentage of international visitors who looked most forward to "local fora accountedconsumption” high percentage in internationalin percentagehigh Enjoying nature and beautiful scenery 63.3% experience-oriented consumption," which accounted for over 60% in international visitors visiting outlying areas, before their visit to Japan Watching sports events 58.3% increased by 6.6 points in the past 5 years. Experiencing Japanese history and traditional culture 57.7% (Chart II-7-2) “What You wanted to do most before Visiting Japan" Shopping 55.2% 100% Treatment and medical examination 54.2% 90% Other Other 80% Eating Japanese food 54.2% Shopping Shopping 70% Going to watch plays/concerts 53.2% 14.1% 12.5% 60% Eating Enjoying Japanese pop culture 48.5% Eating 50% Japanese food Japanese food Visiting places relating to Japanese movies and animation 46.2% 40% 27.9% 34.4% 30% Local experience- Going to theme parks 46.0% Local experience- *2018 oriented 20% oriented consumption consumption 10% Source: JTA document based on International Visitor Survey(JTA) and Number of International Visitors to Japan (JNTO) 34.8% 28.2% Note 1: “3 major metropolitan areas” refers to 8 prefectures: Tokyo, Kanagawa, Chiba, Saitama, Aichi, Osaka, Kyoto, and Hyogo, and “Outlying areas” refers to all other 0% prefectures. 14 Note 2: The percentages above are the percentage of international visitors who visited outlying areas among those subject to the Consumption Trend Survey for Foreigners 2014 2018 Visiting Japan and who selected the items above as "activities carried out during stay in Japan." [Part II] Increase in International Visitors in Outlying Areas and Trends in Experience-oriented Consumption (2)

 Consumption by international visitors to Japan has also increased in outlying areas. "Experience-oriented consumption" contributes to the expansion of consumption.

• Consumption by international visitors to Japan was over 1 trillion yen in • The estimated economic effect of skiing and snowboarding is about 65 billion outlying areas, accounting for about 30% of the total consumption in all yen, which is calculated based on the difference in travel expenditure per prefectures. international visitor according to whether or not they went skiing or snowboarding, and the number of international visitors who went skiing or (Figure II-8) Tourism Consumption and Share of International Visitors in Outlying Areas snowboarding. 28.5% 23.6% (Figure II-15) Economic Effects of Skiing and Snowboarding *2018 1036.2 billion yen Travel expenditure per international visitor to Japan 656.1 billion yen Those who went skiing or snowboarding 225,000 yen/person

2015 2018 Economic effects of skiing and Consumption in outlying areas Share in the total consumption in all prefectures Those who did not go skiing or snowboarding snowboarding About 65 billion yen • According to the survey on changes in travel expenditure per international 152,000 yen/person visitor classified into with or without “experience-oriented consumption,” the expenditure was larger in those with “experience-oriented consumption” than those without. (Figure II-12) Per Capita Travel Expenditure According to With or Without "Experience- oriented Consumption" Per capita travel expenditure (with experience-oriented consumption) Per capita travel expenditure (without experience-oriented consumption) ten thousand yen/person

Skiing and snowboarding 22.5 15.2 Number of Soaking in a hot spring 17.7 14.2 international visitors

Nature and rural village experience tour 20.3 15.0 Number of international visitors who went skiing or Other sports (Golf, marine sports, etc.) 17.8 15.4 snowboarding 880,000people

Enjoying the season (Cherry blossom viewing, autumn leaves, snow, etc.) 20.4 14.7 • It is expected that any "experience-oriented consumption" can increase the Staying at a Ryokan (Japanese-style inn) 18.5 14.2 economic effects of international visitors. 16.4 Enjoying nature and beautiful scenery Source: JTA document based International Visitor Survey (JTA) 15 13.4 Note:“3 major metropolitan areas” refers to 8 prefectures: Tokyo, Kanagawa, Chiba, Saitama, Aichi, Osaka, Kyoto, and *2018 revised values Hyogo, and “Outlying areas” refers to all other prefectures. [Part II] Increase in International Visitors in Outlying Areas and Trends in Experience-oriented Consumption (3)

 In Osaka and Tokyo, inbound tourism consumption accounts for more than 40% of the total tourism consumption.

• Osaka, Tokyo, Kyoto, Fukuoka, and Aichi are the top prefectures in terms • On the other hand, the tourism consumption of international visitors is of the share of tourism consumption by international visitors to Japan in not necessarily high in prefectures where the tourism consumption by the total tourism consumption by Japanese and international visitors. Japanese is high.

(Column Figure II-5-1) Tourism Consumption by International Visitors (By Prefecture)

Top 15 Prefectures Having High Tourism Consumption by International Visitors Tourism Consumption by International Visitors in the Top 15 Prefectures Having Large Tourism Consumption by Japanese (Consumption by international visitors ) Osaka 46.2 53.8 ↓ ( ) Tokyo 44.8 55.2 Tokyo 44.8 ( ) Kyoto 29.2 70.8 Chiba 14.3 ( ) Fukuoka 23.7 76.3 Hokkaido 21.5 Osaka(46.2) Aichi 22.0 78.0 Okinawa(18.9) Hokkaido 21.5 78.5 Kanagawa(11.8) Okinawa 18.9 81.1 (4.7) 16.8 83.2 (5.0) Chiba 14.3 85.7 Kyoto(29.2) Saitama 11.8 88.2 Hyogo(8.3) Kanagawa 11.8 88.2 Fukuoka(23.7) 10.9 89.1 Aichi(22.0) Oita 9.9 90.1 (3.4) Kagawa 9.7 90.3 Nigata(2.6) Hiroshima 9.6 90.4 Mie(2.0) 0% 25% 50% 75% 100% 0 5,000 10,000 15,000 20,000 International visitors Japanese Japanese International visitors (100 million yen) Sources: National Tourism Survey (JTA) and International Visitor Survey (JTA) 16 Note: For tourism consumption by Japanese, expenditures before and after travel and inter-prefectural transportation costs are not allocated to each prefecture, and group tour costs are allocated to each prefecture after deducting margins and amounts equivalent to inter-prefectural transportation costs. For tourism consumption by international visitors, inter-prefectural transportation costs are not allocated to each prefecture, and group tour costs are allocated to each prefecture after deducting amounts equivalent to round-trip transportation costs between the country of departure and Japan and inter-prefectural transportation costs. [Part II] Trends in Employment, Wages, and Productivity in Tourism-related Industries (1)

 With the increase in inbound visitors, employment and wages in accommodation services have been increasing. Productivity has also been improving.

• The number of employees in accommodation services increased by • The average wage in accommodation services rose by 11.0% in the past 6 80,000 or 14.5% in the past 6 years from 2012. The growth in the number years. of female and elderly employees was particularly large. Sales per employee increased by 13.8% in the past 4 years.

(Figure II-28) The Number of Employees in (Figure II-32) Wages in (Figure II-35) Amount of Sales per accommodation services accommodation services Employee in accommodation services

(10,000 people) 63 people Annual bonuses and other special salaries 55 people 9.40 mil. Regular cash earnings yen/person 8.26 mil. Up 14.5% 3.56 mil. yen yen/person (Average of all 3.21 mil. yen 0.41 mil. yen industries: Up 6.3%) 0.24 mil. yen

Up 11.0%

2012 2018 Up 13.8% 15 to 64 years old Male Female 3.15 mil. yen 65 years old and over 2.96 mil. yen (10,000 people) 35 48 50 31 people people people people 27 24 people people

13 7 people people 2012 2018 2011 2015

Source: JTA document based on Basic Survey on Wage Source: JTA document based on 2016 Economic Census 2012 2018 2012 2018 Structure (Ministry of Health, Labour and Welfare for Business Activity and 2012 Economic Census for (MHLW)) Business Activity (Ministry of Internal Affairs and Communications (MIC)) Source: JTA document based on Labor Force Survey (Ministry of Internal Affairs and Communications (MIC)) Note:The numbers of employees as of February 1, 2012 and June 1, 2016 are used. 17 [Part II] Trends in Employment, Wages, and Productivity in Tourism-related Industries (2)

 In accommodation services, there has been a growing sense of labor shortage amid an increase in the number of new job offers, showing a tight supply-demand balance.

•The number of new job offers in accommodation services •Labor shortage in accommodations, eating and drinking increased by 18.9% from 164,000 to 195,000 in the past 4 years services continues to grow faster than that in other industries. from 2014. (Figure II-33) The Number of New Job Offers in (Figure II-34) Diffusion Index (DI) for Employment accommodation services (10,000 people) 20 “Excess”- “Shortage”・% points 19.5 20 19.1 19 10 18.5 0

18 -10 17.3 -20

17 -30 16.4

-40 All industries 16 -50 Total manufacturing industries

-60 Total non-manufacturing industries 15 Accommodations, eating and drinking services 2014 15 16 17 18 -70 18 2012 13 14 15 16 17 18 Source: JTA document based on Employment referrals for general workers (MHLW) Source: JTA document based on Short-Term Economic Survey of Enterprises in Japan () [Part II] Trends in Investment in Tourism-related Industries (1)

 With the increase in inbound visitors, construction investment in accommodation services has been expanding in many regions.

• By regional block, the planned construction costs increased more than tenfold in the • In 2018, the planned building construction costs in Hokkaido, Kinki, and Kyushu regions in the past 6 years. accommodation services was over 1 trillion yen, which increased by a factor of 9.0 times in the past 6 years. (Figure II-38) Changes in the Planned Building Construction Costs in (100 million yen) accommodation services (by Regional Block) 4,000 9.5 times 2012 (Figure II-36) The Planned Building Construction Costs in 3,500 accommodation services 2018 3,000 2,500 14.8 times (億円) (100 million yen) 2,000 52.5 times 1,500 12,000 compared to 12.9 times7.0 times 1,000 2012 3.0 times 10,086 3.4 times 5.9 times 6.2 times Compared2012 年比to 2012 500 6.8 times 10,000 About約9.09.0times倍 9,431 0 Hokkaido Tohoku Kanto Hokuriku- Chubu Kinki Chugoku Shikoku Kyushu Okinawa Shin’etsu 8,000 • The number of new buildings and floor area in accommodation services increased by factors of 2.7 times and 5.9 times in the past 6 years, respectively. 6,333 6,000 (Figure II-37) The Number of New Buildings and Floor Area in accommodation services (1)Number of New Buildings (2)Floor Area

(buildings)(棟) (10,000㎡) 4,000 2500 350 304 2,118 280 2,581 1,992 300 2000 1,999 250 2,000 1,599 1,482 196 1,121 1500 200 1,022 873 867 150 1000 792 93 100 68 74 0 52 500 2012 13 14 15 16 17 18 (年) 50 0 0 2012 13 14 15 16 17 18 (年) 2012 13 14 15 16 17 18(年) Source: JTA document based on Building Starts (Ministry of Land, Infrastructure, and Tourism (MLIT)) Source: JTA document based on Building Starts (Ministry of Land, Infrastructure, Transport 19 and Tourism (MLIT)) [Part II] Trends in Investment in Tourism-related Industries (2)

 Inbound tourism demand generates investment in a wide range of industries, including not only the industry but also the manufacturing industry, and across Japan. (Figure II-40) Examples of Investments for Responding to Inbound Tourism Demand

Confectionery manufacturer Healthcare product manufacturer Cosmetics manufacturer Two daily commodity manufacturers Alcoholic beverage manufacturer The company will invest about 7 billion yen to build a new The company will invest about 10 billion yen The company will invest about 40 The companies will invest about 5 billion The company will invest about 700 million yen to production line for products popular with international from 2019 to 2021 to build a new production billion yen to build a new factory yen to build a factory for manufacturing renovate its bottling warehouse, refrigerated visitors by 2018. building. by 2019. toilet paper by 2019. warehouse, and head office by 2020.

Healthcare product manufacturer Parts and machinery manufacturer Cosmetics manufacturer Cosmetics The company will invest 6 The company invested about 2.5 For strengthening the capacity to supply cosmetics manufacturer billion yen to build a health billion yen to consolidate and expand popular with international visitors, the company will invest The company invested drink factory by 2020. its existing factories. The factory will about 55 billion yen to build a factory by 2020. 1.6 billion yen to build a start operation in 2019. cosmetics raw material factory in 2018. Cosmetics manufacturer The company will invest Healthcare product manufacturer Cosmetics manufacturer about 10 billion yen to The company will invest about 10 billion yen The company will invest about 6 billion yen to build a build a new factory by from 2020 to 2022 to build a new production new factory by 2019 to increase its production capacity. 2020. building.

Cosmetics manufacturer To meet increasing inbound tourism demand, the Cosmetics manufacturer company acquired land at about 40 million yen and will The company invested 100 million yen to Railway company build a new manufacturing factory by 2019. establish a development and manufacturing The company will invest about 11 base for cosmetic raw materials in 2018. billion yen to introduce new vehicles sequentially from FY 2019. Cosmetics manufacturer Cosmetics manufacturer To increase production capacity in response to The company invested about 3 billion yen to increases in inbound visitors and cross-border EC users, build a liquid filler manufacturing factory in the company will invest 6 billion yen to build a new 2018. factory in 2019.

Healthcare product manufacturer Shipbuilding company The company invested about 2.3 billion yen to In response to the trend to renew equipment for routes expand its production line for health beverages. at remote islands in anticipation of inbound tourism demand, the company invested 150 million yen to strengthen its repair business.

Confectionery manufacturer The company will invest about 12 billion yen to build a new building to produce powdered milk Confectionery manufacturer and other products by 2020. The company invested tens of billions of yen to increase its confectionery production capacity.

Cosmetics manufacturer Cosmetics manufacturer Healthcare product Railway company The company will invest about 2.5 billion The company will invest about 10 billion yen to build a manufacturer The company invested up to 65 yen to build a factory by 2019 new factory by 2019. The company will invest billion yen in vehicles until 2018. about 45 billion yen to build a production building by 2021.

Healthcare product manufacturer Less than 100 million yen The company invested about 11 billion yen from 2018 to Housing manufacturer build a new factory to manufacture health foods and The company will invest Confectionery manufacturer Less than 500 million yen ● Chemistry cosmetics. about 20 billion yen to The company will invest about build a museum scheduled 9.3 billion yen to build a new ● Transportation to open in 2020. building for chocolate Less than 1 billion yen production by 2020. ● Food Daily commodity manufacturer Less than 5 billion yen Amid an expansion of the domestic household paper ● Daily commodities market by the increase in international visitors, the Housing equipment manufacturer In response to growing demand for hotel ● Parts and machinery company invested 21 billion yen to restart its inactive Daily commodity Cosmetics manufacturer Railway company Less than 10 billion yen production factory in 2018. construction for inbound visitors, the manufacturer The company will invest tens of The company will invest about ● Other 20 The company will invest 35 company will invest 1.5 billion yen to billions of yen to build a new factory 10 billion yen to build new billion to 40 billion yen to build a new factory in 2019 to increase for skin care products scheduled to vehicles and improve station 10 billion yen or more build a toothpaste factory its production capacity. start operation in 2021. buildings by 2020. Source: JTA document based on newspaper articles from 2019. [Part II] Trends in Consumption after Travel to Japan by Country

 In each country and region, around half of the purchases of Japanese food products and the use of Japanese come from people who have traveled to Japan.

(Figure II-42) Motives for Purchasing Japanese Products (Figure II-43) Motives for Purchasing Japanese (Figure II-47) Motives for Visiting Japanese Chain (Agricultural, Livestock, and Fishery Products including Products (Alcoholic Beverages) Restaurants Prepared Products)

15.0 24.5 22.2 23.5 21.1 29.2 25.8 26.1 10.1 38.7 39.7 39.7 39.3 38.4 7.0 43.3 10.1 8.8 3.7 52.0 8.3 5.9 15.0 5.1 10.3 7.3 9.2 10.5 13.2 17.6 10.6 3.5 9.3 7.5 3.8 6.3 13.9 5.0 7.3 18.6 17.5 9.2 7.3 9.6 25.8 16.4 9.4 17.2 16.5 10.0 2.3 14.0 5.1 21.9 15.3 14.4 23.7 16.5 16.9 23.2 中国 46.5 41.0 16.4 10.5 5.9 26.1 41.4 43.8 41.0 36.8 38.6 35.7 36.8 29.3 28.8 28.2 28.5 韓国 24.9 16.9 10.0 5.0 23.7 43.3 24.9 17.5 台湾 28.5 16.5 9.4 6.3 39.3

China South Taiwan香港Hong U.S.A. 36.8China South Taiwan14.0 Hong7.3 3.5U.S.A China38.4South Taiwan Hong U.S.A.

Korea Kong Korea 5.1 Kong Korea Kong 米国 17.5 23.2 2.3 52.0

自身が訪日した時に買って/見聞きして良かったからMy travel to Japan 訪日した家族や知人から貰って/買って/見聞きして良かったからMy family member’s or acquaintance’s travel to Japan 訪日に関する投稿・記事などによる紹介Information and articles on travel to Japan 訪日に関する番組・特集などによる紹介TV programs and special articles on travel to Japan 21 その他Other Source: JTA document based on an overseas questionnaire survey Note 1: Date of survey: February 2019 [Part II] Impact of Increase in International Visitors to Japan on Tourist Destinations (1)  The improvement of Wi-Fi service and the creation of areas bustling with people are main positive effects of the increase in the number of international visitors to Japan.  As for the impact of increase in the number of international visitors to Japan on domestic trips, the most common answer was "There was little impact" (about 65%).

(Figure II-49) Positive Impact of Increase in International Visitors to Japan on (Figure II-50) How the Information on the Increase in International Visitors to Japan in Tourist Destinations Tourist Destinations Affected the Decision of One’s Trip

Wi-Fi service has been improved. 31.5% There was little impact on domestic trips. (1) 64.8%

Areas bustling with people and with more shops have been created. 24.7% I have traveled to the area based on information. (2) 2.4% The increase in foreign visitors has brought about a variety of ways to enjoy tourist destinations. 15.5% I have considered travel to the area based on information. (3) 4.6% Toilets and other facilities have been improved. 13.9% I have traveled to other domestic areas instead. (4) 9.6% Accommodation facilities have increased. 13.1% I have changed the date of my trip. (5) 5.7% Accommodation facilities have been improved. 13.1%

I have changed the travel destination. (6) 5.3% Roads and streets have been improved. 11.1%

Traffic accessibility has improved. 9.7% I have canceled a trip I was considering. (7) 12.2%

Business hours have been extended. 4.5% I have traveled abroad instead. (8) 3.3%

Travel in the tourist destination has become convenient. 4.4% I have changed my overnight trip to a same-day trip. (9) 4.8%

Source: JTA document based on a domestic questionnaire survey 22 Note 1:Date of survey: February 2019 [Part II] Impact of Increase in International Visitors to Japan on Tourist Destinations (2)

 The increase in the number of international visitors to Japan has become a motive for domestic trips by Japanese. For example, they make or consider a domestic trip for reasons that they “want to go to a popular place among international visitors” and “can learn about the attractiveness of the tourist destination.”  On the other hand, there are people who refrain from making a domestic trip for reasons that "tourist facilities are crowded" and "accommodation expenses increase."

(Figure II-51) Reasons for Making or Considering a Domestic Trip based on the Information on the Increase in International (Figure II-52) Reasons for Refraining from Making a Domestic Trip Visitors

I want to go to a popular place among Tourist facilities are crowded. 49.4% international visitors. 40.4% Accommodation expenses increase. 39.4%

By getting information, I came to know the attractiveness of the area. 25.4% Local transportation in the area is crowded. 29.2%

Restaurants are crowded. 28.4% I thought that the area has had more shops and become more attractive as a tourist 24.9% destination. It is difficult to make a reservation. 24.8%

I was wondering what places international Transportation to the area is crowded. 24.6% visitors are interested in. 21.8% Transportation expenses to the area increase. 14.8% The area is popular with international 16.6% Fees for using tourist facilities and shops visitors. increase. 12.3%

Local transportation expenses in the area 9.9% I want to go to a place where there are increase. many international visitors and interact 4.7% with them. I am not used to places where there are many international visitors. 9.7%

Source: JTA document based on a domestic questionnaire survey Source: JTA document based on a domestic questionnaire survey Note 1:Date of survey: February 2019 Note 1:Date of survey: February 2019 Note 2:The survey was about items (2) and (3) in Figure II-50 and was conducted for respondents who selected at least Note 2:The survey was about items (7), (8), and (9) in Figure II-50 and was conducted for respondents who selected23 at one of the items. least one of the items. [Part II] Impact of Natural Disasters on Travel (1)

 The total number of guest nights, particularly that of international visitors, tends to decline in areas affected by an earthquake designated as an "specified emergency disaster," "extremely severe disaster," or “disaster subject to the Disaster Relief Act.”

(Figure II-53) The Total Number of Guest Nights (of Japanese) Before (Figure II-54) The Total Number of Guest Nights (of International and After the Disaster Compared to the Same Month of the Previous Year Visitors) Before and After the Disaster Compared to the Same Month of the Previous Year

(times)(倍) All disasters 全災害 (times)(倍) All全災害 disasters 1.25 1.50 1.20 1.40 1.15 1.10 1.30 1.05 1.20 1.00 1.10 0.95 1.00 0.90 0.90 0.85 0.80 0.80 0.75 0.70

(times)(倍) Earthquake地震 (times)(倍) Earthquake地震 1.25 1.50 1.20 1.40 1.15 1.30 1.10 1.05 1.20 1.00 1.10 0.95 1.00 0.90 0.90 0.85 0.80 0.80 0.75 0.70

Source: JTA document based on Overnight Travel Statistics Survey (JTA) and White Paper on Disaster Management (Cabinet Office) Note 1: The data above are YoY changes of the total number of guest nights of Japanese nationals and that of international visitors in prefectures affected by a "specified emergency disaster," "extremely severe disaster," or “disaster subject to the Disaster Relief Act" that occurred between April 2008 and 2017, during the period from 3 months before the disaster and 12 months after the disaster (Disasters subject to the survey: 6 (earthquake), 112 (heavy rain), 9 (heavy snowfall), 2 (volcanic eruption), and 48 (other disasters)). Note 2: With regard to prefectures affected by the disasters, those affected by an "extremely severe disaster (local disaster designated in the middle of the year)," "extremely severe disaster (local disaster designated at the end of the year)," or "disaster subject to the Disaster Relief Act" are defined as prefectures to which the applicable municipalities belong, and those affected by other disasters are defined as prefectures specified as "major disaster-affected areas" in the "Application results of extremely severe disasters in the past 5 years" in the attached document of the White Paper on Disaster Management. Note 3: Figures for Overnight Travel Statistics Survey in 2018 are preliminary. 24 [Part II] Impact of Natural Disasters on Travel (2)

 After the "Northern Osaka Earthquake," "Typhoon No. 21," "Torrential Rain in July 2018," and “2018 Hokkaido Eastern Iburi Earthquake", the total number of guest nights in disaster-affected areas temporarily decreased, but it recovered within a relatively short period of time thanks to the effects of "recovery discounts," etc.

(Figure II-55) Total Number of Guest Nights Before (Figure II-56) Total Number of Guest Nights Before (Figure II-57) Total Number of Guest Nights Before and After the Disaster and After the Disaster and After the Disaster (Northern Osaka Earthquake and Typhoon No. 21) (Torrential Rain in July 2018) (2018 Hokkaido Eastern Iburi Earthquake)

2018 Hokkaido Eastern Iburi Northern Osaka Earthquake (September 6) Earthquake (June 18) Typhoon No. 21 (September 4) Torrential Rain in July 2018 (Around from July 5 to July 8)

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Total number of guest nights (YoY changes) Total number of guest nights (YoY changes) Total number of guest nights (YoY changes) Japanese (YoY changes) Japanese (YoY changes) Japanese (YoY changes) International visitors (YoY changes) International visitors (YoY changes) International visitors (YoY changes)

Source: Overnight Travel Statistics Survey (JTA) 25 Note:Figures for 2018 are preliminary. [Part II] Examples of Regional Efforts (Column)

Cycle tourism Decentralization through visualization of Pilot program for priority entry of regional (Setouchi Shimanami Kaido) the tourism comfort residents in public transportation (Kyoto City, ) ( City, )

In order to address the population decline and Between November 10 and December 17 last year, In order to facilitate the smooth travel of residents stagnation of regional economy, etc., local the website called "Arashiyama comfortable living along the line, the City has conducted a pilot governments along the road are making efforts to sightseeing navigation" (Japanese and English) was program since 2017 during the Golden Week period increase the non-resident population through cycling. set up to predict and visualize the tourism comfort when Enoden (Enoshima Electric Railway) is most (the degree to which visitors can enjoy crowded. The program allows residents living along Specifically, the efforts include the development of an sightseeing comfortably) by date and area (shown Enoden to enter Kamakura Station without waiting in environment to accept cyclists from the perspective of below), based on Wi-Fi access data. line outside the Station. cyclists, effective domestic and international promotional activities, and holding an international Visitors can check the tourism comfort by time zone Specifically, the residents are allowed to enter the cycling competition. Through these efforts, the by selecting the date and area they want to visit. They Station preferentially and join the line by governments won the grand prize at the "2016 Sports can check the tourism comfort for 8 areas, including presenting the "Certificate of Residents Living Culture Tourism Awards." They have established a Okusaga, Daikaku-ji Temple and Togetsukyo Bridge, along the Enoden" issued by Kamakura City in brand as a "sacred ground for cyclists" and have and the whole Arashiyama area. advance. been working to revitalize the region and to By giving priority to regional residents during the promote tourism for long-stay visitors through busiest hours of the day, the waiting time was reduced cycling. by up to 20 minutes last year. According to the questionnaire, the program was well received by regional residents and also gained the understanding of many tourists.

Display the tourism comfort for a specific area by time zone

Display the tourism comfort for the whole Arashiyama area by time zone A scene from the pilot program 26 Setouchi Shimanami Kaido *Blue indicates areas where visitors can enjoy sightseeing relatively comfortably and red indicates areas where they will be relatively crowded. [Part III] Measures Taken in FY 2018

(1) Enhance the Attractiveness of Tourism Resources to be (3) Create an Environment Where All Travelers can Enjoy the Foundation for "Regional Revitalization" Sightseeing Comfortably Without Stress

 Drastic opening of attractive public facilities and infrastructure to the public  Realization of innovative immigration using cutting-edge technology  Development of cultural assets as tourism resources  Promoting "integrated revitalization of tourism and communities" through community  Branding of national parks development activities by the private sector  Enhancing the attractiveness of tourist destinations through the conservation and  Dramatic improvement in the cashless environment utilization of scenic tourism assets  Improvement in the communications environment and realization of an environment  Establishment and formation of farming, mountain, and fishing villages for long stay in which anyone can walk independently  Promoting the development of tourism towns utilizing Japanese traditional houses  Providing information in multiple languages and other historical resources  Enhancement of the system for accepting international patients as well as  Development of new tourism resources emergency patients  Acquisition of tourism demand in local shopping districts and expansion of  Environment where people can experience the good security of "Japan, the safest consumption of traditional crafts country in the world"  Improvement in regional tourist routes to meet world-class standards  Completion of the "regional revitalization corridor"  Promoting the formation of the "Tourism-oriented country showcase"  Strengthening gateway functions and promoting LCC service at regional airports  Recovery of tourism in the Tohoku region  Further increase in acceptance of cruise ships  Innovation of public transportation environment  reform (2) Innovate the Tourism Industry to Enhance International  Promoting universal design for the 2020 Tokyo Olympics and Paralympics Competitiveness and to Become Japan's Core Industry

 Comprehensive review of tourism-related regulations and systems  Support for private lodging services  Development and strengthening of tourism management personnel based on industry needs  Urgently overcoming the shortage of accommodations and provision of accommodations to meet diverse needs  Formation and development of world-class DMOs  Ongoing development of the "tourist destination revitalization fund"  Utilization of financial resources for the realization of a next-generation tourism- oriented country  Strategic enhancement of the Inbound Tourism Promotion Project  Strengthening external activities to deliver diverse attractiveness for promoting inbound tourism  Promotion of inviting MICE  Examination of IR legislative measures  Strategic relaxation of visa requirements  Revitalization of educational travel to Japan  Enhancement of tourism education  Revitalization of outbound travel by youth 27 [Part IV] Measures to be Taken in FY 2019

(1) Environmental Development for Setting Specifications that Foreigners can Truly Enjoy  Tourist destinations  Transportation  Cultural assets and national parks  Farm stay

(2) Development of New Regional Tourism Contents  Cultural assets  National parks  Public facilities and infrastructure  Japanese traditional houses and castle/temple stay, etc.  Farm stay  Tourist destinations and transportation

(3) Appropriate Role Sharing and Strengthening Cooperation between the Japan National Tourism Organization and Regional Organizations (Local Governments and Destination Management / Marketing Organization)

(4) Other Measures Contributing to Increase in Consumption and Visitors in Outlying Areas  Facilitation of immigration  Strategic relaxation of visa requirements  Airports  MICE and IR  Development of communities  Utilization of international tourist tax  Outbound and domestic tourism  Recovery of tourism in the Tohoku region  Promoting the formation of the "Tourism-oriented country showcase"  Tourism statistics 28