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Section2 Current Status of Tourism and Future Challenges for Enhancing Section 2 Current status of tourism and future challenges for enhancing value added As a result of economic growth in China and other emerging countries, the number of foreign travelers is increasing around the world. In order to attract the increasing flow of tourists and stimulate tourism consumption, countries are implementing various measures. For example, Thailand increased its tourism revenue five-fold over a period of around 10 years by implementing tourism promotion and various other measures. On the other hand, although the number of tourists to Japan has risen steeply in recent years, the country was ranked 22nd in the world (2014) in in terms of the number of foreign tourists received (Table II-2-2-1). Table II-2-2-1 Ranking of the number of foreign tourists (2014) 1st France 83,770,000 2nd US 75,010,000 3rd Spain 65,000,000 4th China 55,620,000 5th Italy 48,580,000 14th Thailand 24,810,000 … 22nd Japan 13,410,000 Note 1: Tourists who visit these countries for a purpose other than sightseeing are also included. Note 2: The number of tourists to Japan in 2015 is 19,740,0000. Source: World Bank In this section, we will explain the current status of and challenges for tourism in Japan and describe the direction of measures that should be taken in order to spread economic benefits to the tourism industry based on comparison with tourism measures implemented by France, which attracts the largest number of tourists in the world, and Thailand, which is second only to China in terms of tourism revenue in Asia. 1. Global tourism trends and the current status of tourism in Japan (1) Rising number of tourists around the world As a result of economic growth in emerging countries, among other factors, the number of tourists around the world has been increasing by slightly less than 50 million annually, surpassing 1,180 million in 2015 (Figure II-2-2-2). The number of foreign visitors to Japan also increased to 19.74 million in 2015, almost tripling from 6.73 million in 2006, due to the effects of the easing of visas for tourists from Thailand, Malaysia and Indonesia and the yen’s weakening in recent years. The growth rate of the number of foreign tourists to Japan, which was about 10% around 2005 compared with the previous year, increased to 47% in 2015. In particular, the growth in the number of tourists from Asian countries was steep, with the number of tourists from China recoding the highest growth rate ever (107% compared with the previous year). Other countries have also been recording growth in terms of the 441 number of tourists received and tourism revenue. In particular, the United States, which earns the largest tourism revenue in the world, saw its tourism revenue double over the 10-year period between 2003 (101.5 billion dollars) and 2013 (214.8 billion dollars). Thailand’s tourism revenue grew by about five- fold over the 10-year period. In the case of France, the annual number of tourists received is larger than its population size (FigureII-2-2-3). Tourism has thus become an important industry for many countries. Figure II-2-2-2 Changes in the number of tourists around the world 1200 25 1000 20 800 15 600 10 400 5 Number (million) tourists of Number 200 0 0 2000 2007 2014 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2015 World Japan (right axis) Source: World Tourism Organization (UNWTO) and Japan National Tourism Organization Figure II-2-2-3 Changes in the number of tourists and tourism revenue in various countries (2004-2013) 442 Note: As for Japan, the period is extended to 2015, using the Balance of Payments and population projections by the Ministry of Internal Affairs and Communications. Source: World Bank Database (2) Current status of the balance relating to travel in Japan As the number of arrivals in Japan was far smaller than the number of departures from the country until around 2003, Japan’s balance relating to travel remained in deficit for decades. However, in recent years, the number of departures has remained flat, whereas the number of arrivals has increased significantly (Figure II-2-2-4), and consequently, the value of travel service receipts exceeded the value of travel service payments in 2015, returning Japan’s balance relating to travel to a surplus for the first time in 53 years (Figure II-2-2-5). Figure II-2-2-4 Changes in the number of arrivals and departures in Japan (10,000) 2,500 2,000 1,500 1,000 500 0 2003 2012 1995 1996 1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015 Number of arrivals Number of departures Source: "Number of Foreign Visitors" (Japan National Tourism Organization) 443 Figure II-2-2-5 Changes in Japan’s balance relating to travel (ratio to GDP) (%) 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Travel service receipts Travel service payments Source: "Balance of Payments" (Bank of Japan ) and "GDP Statistics" (Cabinet Office) Meanwhile, Japan’s payments relating to travel have been declining year after year, indicating a downtrend in consumption abroad by Japanese tourists. The number of departures from Japan has remained almost flat compared with the number in 1995. As for the trend in Japan’s tourism revenue in terms of contribution by region, revenue from China and revenue from Asia excluding China have grown rapidly since 2013 (Figure II-2-2-6). Regarding both of these regions, Japan’s receipts relating to travel have increased steeply while payments have decreased. As for the balance with the United States and Europe, Japan’s receipts have remained flat while payments have decreased, resulting in a decrease in the deficit (Figure II-2-2-7). On the other hand, the decrease in payments means that the number of Japanese tourists to the United States and Europe has declined. From the viewpoint of people-to-people exchange, it is important to increase payments as well in the future. Figure II-2-2-6 Changes in the balance relating to travel (ratio to GDP) by region 0.3(%) 0.2 0.1 0.0 -0.1 -0.2 -0.3 1996 1999 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 EU China US Asia (excluding China) Source: "Balance of Payments" (Bank of Japan ) and "GDP Statistics" (Cabinet Office) 444 Figure II-2-2-7 Changes in travel service receipts and payments (ratio to GDP) by region (%) China (%) Asia (excluding China) 0.30 0.30 0.25 0.25 0.20 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.00 0.00 Travel service receipts Travel service receipts Travel service payments Travel service payments (%) US (%) EU 0.30 0.30 0.25 0.25 0.20 0.20 0.15 0.15 0.10 0.10 0.05 0.05 0.00 0.00 Travel service receipts Travel service receipts Travel service payments Travel service payments 2．Initiatives to spread the benefits of the increase in tourists to local industries (1) Resourceful measures to broaden the scope of tourism in France It is important not only to increase the number of tourists but also to spread the benefits of consumption by tourists to local industries. In this paragraph, we will look at examples of initiatives to promote the spread of the benefits of tourism to local industries in France and consider suggestions for Japan. France is conducting various analyses and promotional activities concerning tourism. Here, we will focus on experience-based tourism, which is a factor of France’s success in promoting tourism. In France, 445 regions are implementing various experience-based tourism programs (Figure II-2-2-8) in order to encourage tourists to make repeat visits by taking advantage of their respective specialty products. Figure II-2-2-8 Examples of experience-based tourism programs in France Bordeaux: Wine ▸ 1 The downtown of Bordeaux has been renovated and upgraded. The City of Bordeaux has globally promoted itself as a town of wine, opening a wine museum in 2009 along with brand new restaurants and shops. ▸ Caudalie is a popular cosmetic brand that provides products made from byproducts of wine. The store also has a spa facility called “Caudalie Vinothérapie Spa,” which is leading to longer stays by tourists. Cognac: Cognac (brandy) ▸ 2 Visitors can buy cognac and designate its composition to their taste. Toulouse: Indigo dye and beauty 3 products ▸ Toulouse used to be a producing region of indigo dye but the industry declined over time. The houses of dyers have become the town’s tourism resources. ▸ Beauty products made from pastel are used at hotels and are selling successfully. Grasse: Perfumes ▸ 4 Grasse is known for perfumes. Visitors can create an original beauty cream to their taste. Source: “Survey on the Influence of the Rise of Innovative Industries on Trade and Investment Patterns around the World” (Accenture) The Beaujolais region, which is known for the Beaujolais Nouveau wine, has stimulated consumers’ interest and attracted tourists by promoting its wine based on the narrative of the new wine being released at midnight on the third Thursday of each November. At the same time, the region is encouraging tourists to make repeat visits through experience-based tourism. The annual Sarmentelles festival, which is held to coincide with the release of the Beaujolais wine, is a popular event that attracts Beaujolais wine enthusiasts from countries around the world.
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