A NEW NATIONAL VISION FOR TOURISM IN JAPAN
JAPAN ENDLESS DISCOVERY
I TOKYO, KYOTO AND OSAKA I GETTING AROUND I A TASTE OF JAPAN I I A JOURNEY INTO THE UNKNOWN I A FAMILY VACATION IN TOKYO I WWW.THEWORLDFOLIO.COM
01 FITUR 2017 TWF cp 2.indd 1 09/01/17 15:37 02-03 Contents-letter.indd 2 09/01/17 15:39 3 The Worldfolio Japan
Japan, a land where tradition infuses perfectly with modernity
The tourism sector is probably the most relevant industry in terms of the construction of a country brand. But common generalizations and stereotypes are often made about all destinations, countries and regions. France, the United States, Mexico, Spain, China, the United Arab STAFF Emirates; all of these countries are subject to stereotypes. But none more so than Japan, where a lack of information has generated gaps that have been lled ith lingering and so eti es do nright alse isconceptions. ÁLVARO LLARYORA When you think about Japan, what comes to mind? Crowded and Chairman, The Worldfolio expensive Tokyo? Mount Fuji? How tourists percieve a country can often be JONATHAN MEANEY very different from the local perspective, and sometimes the best destinations Chief Editor, The Worldfolio and experiences can be found far away from the well-trodden tourist path. Understanding Japan is absolutely fundamental to properly enjoying KRISTIN KJELLGARD Creative Director Japan, either as a holiday visitor, resident or business traveler. From misunderstandings, such as that international credit cards are not widely Art Direction & Graphic Design: accepted, to critical realities such as the language barrier; this publication EDUARDO BERTONE & IGNACIO PLASENCIA has one mission only: to showcase the real Japan and the future of its tourism Project Director: industry from an economic perspective. JOSE ANTONIO SANTOYO The Worldfolio has established a long-standing presence and ongoing operation in Japan and has published more than 80 pages of exclusive Project Coordinator: content focusing on the country in relevant international media in the U.S. LOUISE GRANKVIST and Europe. Therefore, this publication is our opportunity to share our
Editorial Director: experiences of our travels and interviewing the top leaders in the tourism ANTOINE AZOULAY sector. The support of the Japan National Tourism Organization has been critical for us to develop this material and we would like to express our Project Assistant: appreciation in this publication. YOSHIE ISOMURA In this magazine, you will discover more about Japan and the economic importance of one of its fastest growing industries, from Tokyo’s eccentricities Regional Director: GEMMA GUTIERREZ and Hokkaido’s ski slopes, to the new role of tourism as an economic engine to boost growth in rural areas, addressing the challenges posed by an aging Special Thanks To: and decreasing population. We hope you will enjoy learning more about JAPAN NATIONAL TOURISM ORGANIZATION, JAPAN this truly fascinating country; a land where tradition infuses perfectly with TOURISM AGENCY, WEST JAPAN RAILWAY CO., modernity. NAVITIME & ASAKUSA HANAYASHIKI
The Worldfolio Team
TABLE OF CONTENTS
4 Enterprises come together 12 Tokyo, Kyoto and Osaka: 20 A taste of Japan 24 Take a journey to form national vision for your comprehensive ten-day into the unknown tourism itinerary
02-03 Contents-letter.indd 3 09/01/17 15:39 The Worldfolio Japan 4 ENTERPRISES COME TOGETHER TO FORM NATIONAL VISION FOR TOURISM
In this interview with the Worldfolio, Ryoichi Matsuyama, President of Japan National Tourism Organization , discusses how tourism related enter rises have come together to form a uni ed voice to reach a common goal, as well as the incredible growth of the tourism industry over the ast ve years, and how the industry, which was traditionally in the back seat, is now seen as a major driver of economic growth
Tourism in Japan has increased dramatically in the past five years. It seems now that the pace of growth is stable and a lot can be expected from the sector economically speaking. However, Japan still has room for growth, especially when compared to the top touristic countries such as Spain, rance, Me ico or Italy. What is your view on the tourism sector growth and where does this success reside in your opinion Which is your forecast for upcoming years? apan is currentl living a ver exciting ti e. or the rst ti e in history, our country is truly trying to open itself to the world. Japan is commonly known for its expertise in manufacturing, represented by globally reknowned brands such as Toyota or Panasonic. Previously, tourism was still considered to be a sub-sector, with a marginal impact on the overall economy. However, Prime Minister Abe’s administra- tion has made tourism one of the core pillars for economic growth, transforming Japan into a touristic destination. Ryoichi Matsuyama, President of Japan National Tourism Organization (JNTO) Historically speaking, outbound tourism has always surpassed inbound arrivals. Japanese tourists spend around $16 to $18 billion Lastly, we enforced the cruising-business around the Japanese a year, making us a great contributor to the international tourism sea. Asian nations have seen a sharp enhancement of the middle class, sector. or inbound touris our historical gure stood at around and the rst thing people ant to do hen the have one is travel. to illion arrivals. A ter Abe took o ce e sa a sharp increase. Cruising allows us to tap into that market. While experts argue that 2015 was the eighth consecutive year that inbound tourism surpassed the depreciation of the yen also played a key factor, I believe that it outbound departures. or the rst ti e in ears this represents a did not in comparison to the ones I named. While the Yen might have yearly increase of around 15-20 percent. a direct impact on tourists’ shopping patterns, I do not believe that ut o the illion tourists e received in ve illion it has an impact on the amount of people that decide to come here. were Chinese, four million were Koreans and three and a half million e are beco ing a touris oriented countr ai ing at illion ere ro ai an. or the rst ti e in histor e also received ore inbound tourists b and illion tourists b generating than one million Americans. These statistics show us that around 80 a total expenditure volu e o trillion en b . n hen percent o our tourist influx co es ro neighboring countries hich we surpassed the 10 million bar, we set our objective for 2020 to 20 is, by world standards, normal. illion. o ever e achieved that nu ber last ear so a con dent Our strategy at this moment is therefore to increase our tour- that we will reach our objective. istic base beyond the Asian scope. We are therefore launching governmental initiatives, such as the relaxation of visas for Asian The trillion yen e penditure is a government target countries. We are also installing tax-free programs for visitors, Absolutel it is the rst ti e in histor that the apanese govern ent is allowing them to avoid taxes for purchases over 5,000 yen (ap- putting a sales target on inbound tourism. To achieve that objective, we prox. . Across apan e have around tax ree shops have three a or pillars. he rst one is to enhance regional touris . as of April 2016. Japan has many hidden beauties, unknown to the international tour- Furthermore, we are facilitating immigration procedures so that ist. We want to focus our efforts on promoting lesser known regions. tourists can gain time when arriving in Japan. Our aim is to have a The tourism industry in Japan has been marginalized for too long. system which allows immigration to take no longer than 20 minutes. For example, when compared to the construction industry, our sector At Tokyo Narita Airport, we have already been able to reach that tar- generates a similar amount of money. However, construction companies get. However, in airports with a large number of Chinese travellers, have a clear political force, a voice that tourism did not have. Histor- the visa requirements make it harder. We are therefore aiming at a ically speaking, tourism companies were SMEs, working hard but in queueing line of no longer than an hour. an isolated anner. o secondl e ant to create a uni ed voice or We are also aggressively promoting our country as a whole. the tourism sector to have more weight on the political and economic Major tourism-based companies have always existed in Japan, but arena. e ant to ake our sector a pro table one ith directive po er. they focused on their individual targets while largely disregarding Third, we want to create a foreigner-friendly environment. For the common objective. We therefore started implementing a more example, we acknowledge the neccessity to push for the installation nationalistic vision, where all players joined together to reach the of WiFi connection around the country, allowing all tourists to be common objective of 20 million visitors. connected. Setting up these goals is crucial to the success of our in-
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dustry. Japanese people are like that, once there are common goals and targets implemented, we become willing to work relentlessly in “We are also aggressively promoting our country order to achieve them. I am very optimistic for the future. If we look as a whole. Major tourism-based companies have at 2015’s country ranking in terms of tourism, Japan comes in at 16th always existed in Japan, but they focused on their place, with France holding the top spot with more than 80 million individual targets while largely disregarding entrants. Achieving a total o illion tourists ould put us in the the common objective. We therefore started fourth position worldwide. implementing a more nationalistic vision” an you tell us more about the short term goals you have set We have set four short-term goals. Firstly, we want to increase the infrastructural capacity of the country, creating larger and better air- change that “someday” to “today.” To do so, we must inform visitors ports and marine ports. Secondly, we want to construct more hotels. and international representatives about the true facts regarding a visit We are currently trying to attract foreign investors to build more tour- to apan. urther ore e need to invite ore influential people such ist-friendly hotels. Thirdly, we want to host successful world events, as bloggers, to come to Japan. These opinion leaders will then promote starting with the Rugby World Cup in 2019, the Olympic Games in our country on their personal communication mediums, effectively 2020 and the World Masters Games in 2021. We want to effectively giving Japan a voice spoken by an outsider, and inviting their followers utilize the attention received from these mega-events to promote and to discover our country. Word of mouth is key to success. brand our country. Lastly, we want to create a foreigner-friendly en- vironment. The government has therefore directed the improvement How can the government invite the Japanese private sector to follow o secondar tra c linking our cities together hile ocusing on its own efforts? practical applications, such as creating more WiFi spots. In terms of revenue, the tourism industry in Japan enjoys a great size. However, 90 percent of Japanese tourists travel to internal destinations, What is the role of travelling websites, such as Airbnb in reaching that leaving a mere 10 percent to international visits. In France, one third ob ective o the population goes international a nu ber that reaches percent From a traveller’s point of view, vacation rental websites such as Airbnb in South Korea. In order to make our private sector more aligned are a user-friendly solution. We believe that these initiatives are one with our goals, we must balance the focus between the international of the best solutions to solve the shortage of accommodation in Japan. market and the domestic one. Our country is facing challenge of an aging society, and this creates a need to go international. Targeting Have you put a special strategy in place to promote the Olympic ames international tourists is an effective way to overcome our decreasing We started launching intense marketing activities during the Rio Olym- demographic line. Japanese people are very friendly but very shy. pic Games. The Rugby World Cup will set the stage for the Tokyo Because of this personality trait, some of our citizens are less keen to Olympics, as the World Masters will retain the attention gathered. We see a greater number of strangers coming in. However, this part of have created three arrows in order to host successful Olympic Games. our mentality is changing as our country opens up. First, we want to host environmentally friendly games, putting an effort on green alternatives and positioning ourselves as the caring county How is JNTO encouraging local communities to promote unconventional that we are. Secondly, we want to create the Japan brand, showcasing destinations more aggressively what our country stands for and what it has to offer to the eyes of the The government is currently in the process of establishing a strong world. Third, we want the Games to have a national impact, beyond estination arketing rgani ation . his organi ation groups Tokyo and Osaka, by taking visitors to our lesser-known regions. local companies from the private sector and allows them to showcase Fourth, we want to re-enforce volunteering activities. their region’s beauty in a joint manner. The government is currently planning to enforce over 100 DMOs around Japan. Can you tell us more about the misperceptions you see between the Jap- anese reality and what the rest of the world thinks? Japan is currently competing with and often beating second-tier coun- One of the lingering misperceptions is that Japan is a very expensive tries, such as oland or the Netherlands. Soon enough though, it will be country. However, according to TripAdvisor, Tokyo is not that expen- competing for tourists against the top players, such as rance and Spain. sive, especially when compared to the world’s most visited cities such What will be Japan s competitive advantage when competing with the as New York and Paris. We are cheaper than London, and close to world s top destinations Singapore or Hong Kong. The people of Japan is our main competitive advantage. Our normal life and culture are simply mesmerizing. Another point is that soon our organi ation has promotional bases around the world. How is JNTO enough, we will be working together to reach our common objectives. working to make Japan more attractive and what is the message you are trying to enforce? What are Japan s main attractions When many foreigners think about Japan, they think: “It is a nice Our attraction is based on the fusion between the cultural and the place, and I want to go there someday, but not now.” JNTO’s role is to modern, or even, the futuristic. However, this fusion between history and modernity is poorly represented. One of our problems is that there are almost too many attractions in Japan. When I meet with “The people of Japan is our main competitive leaders of the private sector, I always stress the need to focus their advantage. Our normal way of life and culture promotions and to focus their activities. Many people that come here are simply mesmerizing. Another point is that leave satis ed. or urope and the . .A. apan is still not a touris soon enough, we will be working together to destination, and that is what we must change. Japan is not a once in reach our common objectives” a lifetime trip, it is a trip that must be repeated.
04-05 JNTO Q&A 2.indd 5 09/01/17 15:40 The Worldfolio Japan 6
OVERSEAS RESIDENTS’ VISITS TO JAPAN According to JNTO, the estimated number of international travelers to Japan in November 2016 reached 1.88 million (+13.8% from ovember , recording the highest gure for ovember. he accumulated number of visitors reached . million u to ovember, a . increase com ared to same eriod of , and exceeded million for the rst time in history.
2020 2016 THE TARGET JANUARY TO NOVEMBER 40 million VISITS 21.9 million VISITS
OVERSEAS RESIDENTS’ VISITS TO JAPAN BY YEAR
Unit million 21.9 20 18 16 12 14 10 8 6 4 2 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Jan-Nov 0
OVERSEAS RESIDENTS’ VISITS TO JAPAN BY COUNTRY AND REGION Although hina, outh orea, aiwan and ong ong continued to occu y a share of almost of the whole market, the increase from last year slowed down. y contrast, the share of uro e, orth America and Australia was small, they all saw an increase of more than com ared to the revious year.
OVERSEAS RESIDENTS’ VISITS TO JAPAN BY COUNTRY/REGION 2015
NORTH AMERICA SOUTH AMERICA EUROPE OCEANIA SOUTH KOREA ASIA OTHERS
HONG KONG
TAIWAN CHINA
SOURCE: Japan National Tourism Organization
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HOW DOES TRAVEL & TOURISM COMPARE TO OTHER SECTORS?
JAPAN GDP FORECAST BY INDUSTRY JAPAN GDP IMPACT BY INDUSTRY
AVERAGE ANNUAL GDP GROWTH OVER NEXT DECADE SHARE OF TOTAL ECONOMY GDP
-0.7% -0.7% -0.5% -0.3% 0.4% Indirect & Induced Direct 30% 25% 20% FINANCIAL AGRICULTURE MINING BANKING EDUCATION 15% SERVICES 10% 0.5% 0.6% 0.7% 0.7% 1.7% 5% 0% MINING BANKING EDUCATION CHEMICALS IL (WITHOUT AUTOMOTIVE AUTOMOTIVE WHOLESALE) AGRICULTURE
CHEMICALS RETAIL (WITHOUT AUTOMOTIVE TOTAL TRAVEL & VEL & TOURISM R ETA MANUFACTURING MANUFACTURING
MANUFACTURING WHOLESALE) MANUFACTURING ECONOMY TOURISM T RA FINANCIAL SERVICES