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White Paper on in , 2020 (Summary)

Japan Tourism Agency June 2020 Outline of White Paper

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. This Paper consists of the following four parts. Part I Tourism Trends in 2019 Chapter 1 Global Tourism Trends Chapter 2 Tourism Trends in Japan

Part II Responding to the Impact of COVID-19 and Restarting Regional Revitalization through Tourism Chapter 1 Impact of COVID-19 on Tourism and the Countermeasures Chapter 2 Restarting Regional Revitalization through Tourism

Part III Measures Taken in FY2019

Chapter 1 Development of Environment that Foreigners Truly Enjoy Visit to Japan Chapter 2 Development of New Tourism Contents in Regional Areas Chapter 3 Appropriate Sharing of Roles and Strengthening Cooperation between Japan National Tourism Organization and Regional Organizations (Local Governments and Destination Management/Marketing Organizations) Chapter 4 Other Measures Contributing to Increase in Consumption and Visitors in Regional Areas

Part IV Measures to be Taken in FY2020 Chapter 1 Countermeasures against COVID-19 in the Field of Tourism Chapter 2 Strategies beyond COVID-19 1 Part I Tourism Trends in 2019

Global Tourism Trends…………..……………………………………………….…………..…3

Tourism Trends in Japan (International Visitors Traveling to Japan)...... ………6

Tourism Trends in Japan (Japanese Overseas/Domestic )...... 8

Tourism Trends in Japan (Overnight Trips) ………...... ………………………10

Tourism Trends in Japan (Tourism Trends in Regional Areas)……………....…………… 12 Part I: Global Tourism Trends (1)

According to the global tourism trends announced by the United Nations World Tourism Organization (UNWTO), the total number of international tourists was 1,461 million in 2019, increasing by 54 million (3.8%) from 2018. By region, both arrivals and departures in the Asia-Pacific have been increasing in recent years.

(Figure I-2) Number of International Tourists (Figure I-5) Number of International Tourists (100 million people) by Region of Origin 16 5.4%

14.6 2009 53.0% 20.6% 15.8% 5.2% 14.0 4.9% 14 13.3 2014 50.7% 23.7% 16.0% 4.8% 12.4 11.9 4.4% 12 11.4 2019 50.8% 24.9% 15.1% 4.9% 11.0 10.4 (Year) 10.0 0% 20% 40% 60% 80% 100% 9.5 10 9.3 Europe Asia-Pacific Americas Middle East Africa 9.1 8.9 8.6 8.1 3.5% 7.6 8 2008 55.2% 19.7% 16.4% 2.9% 6.8 6.8 7.0 7.0 6.3 3.0% 5.96.1 6 2013 52.1% 23.0% 16.4% 3.1%

2.9% 2018 4 48.0% 25.6% 16.8% 3.2% (Year) (Year) 0% 20% 40% 60% 80% 100% Europe Asia-Pacific Americas Middle East Africa Unknown origin 3 Source: Prepared by the JTA based on data from UNWTO Part I: Global Tourism Trends (2)

In the “International Tourist Arrivals by Country/Region Rankings” of 2018, Japan ranked 11th, with 31.19 million, while in the “International Tourist Arrivals by Air or Sea Rankings,” Japan ranked 7th (1st in Asia). The total number of international visitors to Japan in 2019 (31.88 million) was equivalent to 11th and 7th in the “International Tourist Arrivals by Country/Region Rankings(2018)” and the “International Tourist Arrivals by Air or Sea Rankings(2018)”. (Figure I-6) International Tourist Arrivals by Country/Region Rankings (Figure I-7) International Tourist Arrivals by Air or Sea

(2018) (10,000 people) Rankings(2018) (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 8,940 Spain 8,281 Spain 6,950 USA 7,975 USA 5,124 6,290 Italy 3,893 Italy 6,157 Turkey 3,627 Turkey 4,577 France 3,465 Mexico 4,131 UK 3,386 31.88 million in 2019 (all Germany 3,888 (★Japan) 3,188 3,818 ★Japan 3,119 arrivals are by air or sea) UK 3,632 Thailand 3,061 (Japan) 3,188 31.88 million in 2019 China 2,911 Japan ranked 7th in the world and 1st Japan 3,119 Greece 2,132 in Asia Austria 3,082 Mexico 1,937 * The ranking of the number of Greece 3,012 Japan ranked 11th in the world 1,921 1,639 international tourist arrivals by air or sea Hong Kong 2,926 and 3rd in Asia 2,583 ★ 1,535 Russia 2,455 Macau 1,365 Portugal 1,284 2,280 Canada 2,113 1,270 Saudi Arabia 1,206 Poland 1,962 Canada 1,133 Netherlands 1,878 1,107 Macau 1,849 ★ Morocco 1,087 India 1,743 Malaysia Hungary 1,014 1,715 ★Egypt 1,008 Croatia 1,665 Ireland 927 *UAE 1,592 925 Vietnam 1,550 Russia 894 Saudi Arabia 1,535 India 849 South Korea 1,535 717 Singapore 1,467 ★Croatia 620 Ukraine 1,421 Hungary 611 ★Czech Republic 1,367 Poland 559 Indonesia 1,340 South Africa 310 Denmark 1,275 Ukraine 269 Morocco 1,229 Germany Switzerland 1,172 Austria Egypt 1,135 Netherlands Taiwan 1,107 Portugal Ireland 1,093 Czech Republic NA South Africa 1,047 Denmark Bulgaria 927 Switzerland

Source: Prepared by the JTA based on data from UNWTO Note 1. It should be noted, particularly for the purpose of strict comparison, that the number of international tourist arrivals is calculated and published by different statistical criteria for Source: Prepared by the JTA based on data from UNWTO each country and region. Note 1. Figures shown above are provisional as of May 2020. Note 2. The figures shown above are provisional as of January 2020. Note 2. In countries marked with ★, figures for 2018 are yet to be announced, and figures for 2017 have been adopted instead. Note 3. Excluding countries/regions marked with a ★, the above chart shows the statistics of the number of international visitors who had at least one overnight stay in the country/region Note 3. Figures for the United Arab Emirates are for Dubai only. they visited. Note 4. The above chart shows the statistics of the number of tourist arrivals who had at least one overnight stay in the country/region they visited, except for Japan, Russia, South Korea, Note 4. Countries/regions belonging to Asia are indicated in green. Vietnam, and Taiwan. Note 5. In countries and regions where figures for 2018 are unannounced or unknown, figures for the latest year for which the statistics are available are adopted. Note 5. Rankings are subject to change depending on the timing of data collection, as related data may be updated or modified from time to time. Note 6. The above chart shows the statistics of the number of international visitors arriving by air and sea, which excludes those arriving by land (by car, etc.). Note 6. It should be noted, particularly for the purpose of comparison, that the number of international tourist arrivals is calculated and published based on different statistical criteria for each Note 7. The number of international tourist arrivals by air or sea is unknown for Germany, Austria, the Netherlands, Portugal, Czech Republic, Denmark, and Switzerland, as 4 country and region. transportation mode-specific data is unavailable. (For example, the number of foreign crew members is not included in statistics related to Japan, but it is included in the statistics of France, Spain, China, South Korea, and others.) Note 8. Rankings are subject to change depending on the timing of data collection, as related data may be updated or modified from time to time. Part I: Global Tourism Trends (3)

In the “ Revenue by Country/Region Ranking” of 2018, Japan recording 42.1 billion USD, ranked 9th (2nd in Asia), up from 11th (4th in Asia) in 2017. In the “International Tourism Expenditure by Country/Region Rankings,” Japan posting 20.2 billion USD, ranked 16th (6th in Asia), up from 18th (6th in Asia) in 2017.

(Figure I-8) International Tourism Revenue by Country/Region Ranking (Figure I-9) International Tourism Expenditure by Country/Region Rankings (2018) (100 million USD) (2018) (100 million USD) 0 200 400 600 800 1,20,00000 1,22,0200 0 500 1,000 1,500 2,000 2,500 3,000 USA 2,147 China 2,773 Spain 815 USA 1,445 France 655 Germany 956 Thailand 564 UK 690 Italy 493 France 479 UK 486 Australia 370 (Japan) 461 46.1 billion USD in 2019 South Korea 351 Australia 450 Canada 344 Germany 430 Russia 343 Japan 421 Japan ranked 9th in the world and 2nd in Asia Italy 301 Macau 407 Spain 268 China 404 Hong Kong 264 Hong Kong 369 Singapore 262 India 286 (Japan) 213 21.3 billion USD in 2019 Canada 264 India 213 Turkey 252 Netherlands 212 Austria 231 Japan 202 Japan ranked 16th in the world and 6th in Asia Mexico 225 Taiwan 194 185 UAE 214 Belgium Switzerland 184 Singapore 204 Brazil 183 Portugal 201 Sweden 181 196 Malaysia UAE 180 Greece 190 Norway 173 South Korea 186 Saudi Arabia 166 Netherlands 180 Kuwait 143 Switzerland 170 Malaysia 122 Indonesia 164 Thailand 121 Sweden 149 Austria 120 Poland 140 Philippines 119 Taiwan 137 ★Iran 113 Saudi Arabia 120 Mexico 112 Egypt 116 Argentina 107 Russia 116 Denmark 105 Croatia 111 Indonesia 103 New Zealand 109 Poland 97 Vietnam 101 Nigeria 96 Denmark 91 Qatar 93 South Africa 89 Ukraine 79 Belgium 89 Iraq 79 Lebanon 84 Israel 77 Philippines 82 Source: Prepared by the JTA based on data from UNWTO and each country’s national tourism offices Source: Prepared by the JTA based on data from UNWTO and each country’s national tourism offices Note 1. Figures shown above are provisional as of May 2020. Note 1. Figures shown above are provisional as of May 2020. Note 2. In countries marked with ★, figures for 2018 are yet to be announced, and figures for 2017 have been adopted instead. Note 2. International tourism revenue does not include international passenger fares. Note 3. International tourism expenditure does not include international passenger fares. Note 3. Data on international tourism revenue may be updated or modified from time to time. Note 4. Data on international tourism expenditures may be updated or modified from time to time. Calculated values of international tourism receipts are subject to fluctuations in currency exchange rates to the US dollar. Calculated values of international tourism expenditures are subject to fluctuations in US dollar exchange rates. Thus, rankings may change depending on the timing of data collection. Thus, rankings may change depending on the timing of data collection. 5 Part I: Tourism Trends in Japan (International Visitors Traveling to Japan) (1)

In 2019, total number of international visitors to Japan increased by 2.2% from 2018 to 31.88 million. Of this total, the number of visitors from Asia was 26.37 million (82.7% of the total), including 22.36 million (70.1%) from East Asia and 3.83 million (12.0%) from six major ASEAN countries. The figures for North America and five major European countries (UK, France, Germany, Italy, and Spain) were 2.1 million and 1.29 million, respectively.

(Figure I-11) Number of International Visitors to Japan: Breakdown (Figure I-10) Number of International Visitors to Japan by Country/Region(2019) (10,000 people)

(10,000 people) Germany Italy Spain Russia Australia 24 (0.8%) 16 (0.5%) 13 (0.4%) 12 (0.4%) 62 (1.9%)

3,500 France 3,188 34 (1.1%) 3,119 UK 3,000 2,869 42 (1.3%) Other 138 (4.3%) Canada 2,404 38 (1.2%) 2,500 USA 5 major European China India 172 countries 959 18 (0.6%) (5.4%) 1,974 129 (4.0%) (30.1%) 2,000 Vietnam North America 50 (1.6%) 210 (6.6%) 1,500 Philippines 1,341 61 (1.9%) Total 1,036 Indonesia Thailand 41 (1.3%) 132 3,188 1,000 835 835 861 836 733 (4.1%) Asia 2,637 (82.7%) 673 679 Malaysia 614 622 Hong Kong East Asia 2,236 (70.1%) 521 50 (1.6%) Southeast Asia 383 (12.0%) 229 500 Singapore (7.2%) South Korea 49 (1.5%) 558 (17.5%) 0 Taiwan 489 (15.3%) (Year) Source: Prepared by the JTA based on data from JNTO Note 1. Figures in parentheses indicate a percentage among the total number of international visitors to Japan. Source: Prepared by the JTA based on data from JNTO Note 2. “Other” includes countries and regions in Asia and Europe not specified in the above chart. Note 3. Totals may not be exact due to rounding. 6 Part I: Tourism Trends in Japan (International Visitors Traveling to Japan) (2)

Tourism consumption by international visitors in 2019 hit a record high of 4.8135 trillion yen (up 6.5% from 2018), recording a new high for the seventh consecutive year. By country/region, China took first place with 1.7704 trillion yen (36.8% of the total), followed by Taiwan with 551.7 billion yen (11.5%), South Korea with 424.7 billion yen (8.8%), Hong Kong with 352.5 billion yen (7.3%), and the United States with 322.8 billion yen (6.7%). These top five locations accounted for 71.1% of the total.

(Figure I-13) Tourism Consumption by International Visitors (Figure I-14) Tourism Consumption by International Visitors: Breakdown by Country/Region

Consumption by Italy Spain India Russia Year Germany international visitors Indonesia 32.4 28.8 27.4 21.8 46.5 0.7% 0.6% 0.6% 0.5% 53.9 1.0% 2012 Philippines 1.1% 1.08 trillion yen 65.9 1.4% Other 304.0 2013 1.42 trillion yen Malaysia 6.3% 66.5 1.4% 2014 2.03 trillion yen Canada France China 67.0 1,770.4 79.8 2019 1.4% 1.7% 36.8% 2015 3.48 trillion yen Excelの図表Ⅰ-14シー(2ト0の19の)グラフがこちらの 環境では正常に表示されませんので Consumption by international Singapore Vietnam (テキストが一部しか表示せれない。)、Excelの 2016 85.2 87.5 グラフの貼りv付isiけtoはrs 行to っJaてpいanません。 3.75 trillion yen 1.8% 1.8% 4.81 trillion yen 2017 4.42 trillion yen UK USA 99.9 322.8 2.1% 6.7% 2018 4.52 trillion yen Hong Kong Australia Thailand 352.5 Taiwan 173.2 151.9 7.3% South Korea 551.7 2019 3.6% 4.81 trillion yen 3.2% 424.7 11.5% 8.8% Note 1. Please note that there was a change of statistical basis. The survey focused mainly on travelers using airports until 2017; however, in light of the rapid increase in the number of cruise travelers, who tend to stay for a short period of time, the scope of the survey was expanded to cover cruise travelers since 2018. 7 Source: International Visitor Survey (JTA) Part I: Tourism Trends in Japan (Japanese Overseas/Domestic Travel) (1)

Total number of Japanese overseas travelers hit a record high of 20.08 million in 2019 (up 5.9% from 2018) , exceeding 20 million for the first time in about 30 years after reaching 10 million in 1990. In 2019, the total number of Japanese who took domestic overnight trips was 311.62 million (up 7.1% from 2018), and the figure for domestic one-day trips was 275.48 million (up 1.8% from 2018). (Figure I-29) Total Number of Japanese Taking Domestic (Figure I-25) Number of Japanese Overseas Travelers Overnight Trips and One-Day Trips (10,000 people) (10,000 people)

2,008 34,000

32,566 32,333 1,895 32,042 1,849 31,555 32,000 31,299 31,162 29,734 1,789 1,747 1,7401 ,753 32,418 29,105 1,729 1,712 1,699 30,000 31,542 1,664 1,690 31,053 29,720 29,788 1,599 1,612 29,173 1,545 28,000

27,548 27,073 26,000

24,000

22,000 Overnight trip One-day trip

20,000 2005 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2012 13 14 15 16 17 18 19 (Year) (Year) Source: Prepared by the JTA based on data from JNTO Source: National Tourism Survey (JTA) 8 Part I: Tourism Trends in Japan (Japanese Overseas/Domestic Travel) (2)

Japanese domestic tourism consumption totaled 21.9 trillion yen in 2019 (up 7.1% from 2018). In 2019, domestic tourism consumption by Japanese and international visitors totaled 27.9 trillion yen (up 7.1% from 2018). Of this total, 17.2% was related to international visitors.

(Figure I-31) Domestic Tourism Consumption in Japan (Figure I-30) Japanese Domestic Tourism Consumption (trillion yen) 27.9 trillion yen 25 21.9 21.0 21.1 20.2 20.4 20.5 19.4 20 Consumption by international visitors to Japan 18.4 4.8 4.8 trillion yen (17.2%) 4.9 5.0 4.8 4.6 4.7 Domestic consumption by 4.4 Japanese overseas travelers 4.5 1.2 trillion yen (4.3%) 15 Domestic overnight trip Domestic one-day trip consumption by Japanese consumption by Japanese 17.2 trillion yen (61.4%) 4.8 trillion yen (17.1%)

10 17.2 16.0 16.1 15.0 15.4 15.8 15.8 13.9 5

0 2012 13 14 15 16 17 18 19

(Year) Overnight trip One-day trip Domestic travel total

Source: National Tourism Survey (JTA) Source: National Tourism Survey (JTA) and International Visitor Survey (JTA) 9 Part I: Tourism Trends in Japan (Overnight Trips) (1)

Total number of nights stayed in and (Japanese-style ) in Japan increased to 543.24 million in 2019 (up 1.0% from 2018). Of this total, Japanese travelers accounted for 441.80 million (down 0.4% from 2018) and international visitors for 101.43 million (up 7.6% from 2018), exceeding 100 million for the first time since the start of the survey in 2007. Total number of nights of international visitors stayed in regional areas increased to 39.21 million in 2019 (up 1.9% year on year). (Figure I-32) Total Number of Nights stayed (Figure I-33) Total Number of Nights of International Visitors' stays: (Japanese/International Travelers) 3 Major Metropolitan Areas and Regional Areas (10,000 guest nights) (100 million guest nights) 3 major metropolitan areas 6 8,000 5.432 5.380 7,000 6,223 5.096 5.041 4.925 6,000 5,580 5 4.659 4.735 0.943 1.014 5,000 0.656 0.797 0.335 0.448 0.694 4,000

4 3,000 2,000 1,000 3 0 2018 2019 (Year)

(10,000 guest nights) 4.324 4.287 4.385 4.231 4.299 4.437 4.418 Regional areas 2 5,000 3,921 4,000 3,848 1 3,000

0 2,000 2013 14 15 16 17 18 19 1,000 (Year) Total number of guest nights Total number of guest nights of international visitors 0 2018 2019 (Year) Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) Note 1. Preliminary figures for 2019. Note 1. Preliminary figures for 2019. Note 2. Figures given above each bar indicate the total number of nights of Japanese and Note 2. “3 major metropolitan areas” refers to eight prefectures: Tokyo, Kanagawa, Chiba, international travelers' stays combined. Saitama, Aichi, , , and Hyogo. 10 “Regional areas” refers to all other prefectures. Part I: Tourism Trends in Japan (Overnight Trips) (2)

In 2019, the national average for room occupancy rates rose to 62.1%, increasing from 61.2% in 2018. In particular, the rates were high in Tokyo at 79.7%, and Osaka at 79.5%. By accommodation type, the rates for “city ,” “business hotel” and ryokan were 79.4%, 75.4% and 39.5%, respectively.

(Figure I-35) Room Occupancy Rates (Figure I-36) Room Occupancy Rates by Accommodation Type (%) 90% 90 Tokyo, 79.7%

79.2 80.2 79.4 Osaka, 79.5% 78.7 79.5 80 75.7 77.3 80% Fukuoka, 71.3% 75.3 74.2 74.4 75.5 75.4 70 72.1 , 69.3% 69.5 62.1 60.3 60.5 61.2 70% Aichi, 68.8% 59.7 60 55.2 57.4 , 65.0% 57.5 58.3 58.6 56.0 56.9 Okinawa, 63.4% 54.0 50 52.3 National average, 60% 62.1%

Kagawa, 59.3% 40 Ishikawa, 59.2% 38.8 50% 37.0 37.1 37.5 39.5 Miyagi, 57.5% 35.2 30 33.4

20 40% 2013 14 15 16 17 18 19 2013 14 15 16 17 18 19 (Year) (Year) City hotel Business hotel Total hotel Ryokan Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) 11 Note 1. Preliminary figures for 2019. Note 1. Preliminary figures for 2019. Part I: Tourism Trends in Japan (Tourism Trends in Regional Areas)

In 2019, total number of stays of international visitors increased substantially in four regions: Tohoku (17.3%), Chubu (17.8%), Kinki (15.1%) and Shikoku (17.1%). In contrast, in Kyushu and Okinawa, the number dropped, mainly due to many South Koreans refraining from visiting Japan. China ranked 1st in four regions (Hokkaido, Kanto, Chubu, and Kinki), South Korea in Kyushu, and Taiwan in five regions (Tohoku, Hokuriku-Shin’etsu, Chugoku, Shikoku, and Okinawa).

(Figure I-43) (Figure I-44) YoY Changes in Total Number of Nights Stayed Regional Breakdown of Total Number of Nights of International (Overall/International Visitors) in Japan by Region (2019) Visitors' stayed by Country/Region (2019)

20% 17.3% 17.8% 17.1% 15.1% 15%

YoY changes in average total number of guest nights of international visitors: +7.6% 10% 7.0% 6.6% 4.5% 5% 2.7% 2.2% 2.8% 2.2% 1.6% 0.9% 0% -0.3% -1.3% -1.1% -1.3% -3.1% -5% -3.7%

YoY changes in average total number of guest nights +1.0% -6.6% -10%

Total number of guest nights Total number of guest nights of international visitors Source: Overnight Travel Statistics Survey (JTA) Source: Overnight Travel Statistics Survey (JTA) Note 1. Preliminary figures for 2019. Note 1. Final estimate figures for 2018 and preliminary figures for 2019. Note 2. “Europe” refers to six countries: Germany, UK, France, Russia, Italy, and Spain.

12 [Part II] Responding to the Impact of COVID-19 and Restarting Regional Revitalization through Tourism

Impact of COVID-19 on Tourism and the Countermeasures …….…………………………………………… 14

Japanese Domestic Travel Trends and Revitalization Strategies...... ………………………………………….20

Situation of International Visitors to Regional Areas………………………………..…………………………... 22

International Visitors coming to Japan to Watch 2019 Rugby World Cup Matches: Consumption and Visits to Regional Areas…………..…………..……………………………………………... .23

Encouraging Repeat Visitors from East Asia to Visit Regional Areas…………………………………………24

Attracting International Visitors to Regional Areas by Utilizing Local Characteristics……………………… 26

Popular Local Foods among International Visitors………...…………………………………………………… 28

Measures Taken by Ryokan which Succeeded in Raising Room Occupancy Rate by attracting International Visitors……………………..……………………………………………...….....……. 29 Part II: Impact of COVID-19 on Tourism and the Countermeasures (1)

As a result of entry restrictions to control the COVID-19 outbreak, the number of international visitors to Japan in April 2020 plunged by 99.9% year on year to 2,900, and tourism consumption by international visitors for the January-March 2020 period decreased by 41.6%. (Figure II-1) Number of International Visitors to Japan and YoY Changes (%) 31.88 million 20.0 31.19 million 7.5 6.5 people 3.8 5.8 3.7 5.6 5.2 people 0.9 -0.4 -1.1 -2.2 -4.0 0.0 -5.5 l l t r r r r i i y y y y y y h e h l s r r r r r r e e e e c a c n u u p p a a r a a r b b b b u J M g u u a u u a A o A J r m t m m r u n n M c M b e e e b a a A t v c

-20.0 e e J O J p o e F F e N D S -40.0 2019 2020 8.36 million Jan.-Apr. -58.3 April people -60.0 Jan.-Apr. 3.94 million 2,900 people people March 10.98 million 194,000people February -80.0 people 1,085,000 people -93.0 January -99.9 2,661,000 people 2012 2018 2019 2020 -100.0 (Figure II-2) Tourism Consumption by International Visitors to Japan and YoY Changes 4.81 trillion yen 20.0 (%) 4.51 trillion yen 11.8 7.4 10.0 3.6 3.4

0.0 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar

-10.0 2019 2020

-20.0 1.08 trillion yen Jan.-Mar. 0.67 trillion -30.0 Jan.-Mar. yen -41.6 1.15 trillion -40.0 yen

2012 2018 2019 2020 -50.0 Source: Prepared by the JTA based on data from the JNTO on the number of international visitors to Japan and International Visitor Survey (JTA)14 Part II: Impact of COVID-19 on Tourism and the Countermeasures (2)

Japanese domestic tourism consumption was 786.4 billion yen in March 2020, decreasing by 53.1% from March 2019.

(Figure II-3) Japanese Domestic Tourism Consumption and YoY Changes

25.3% 21.93 trillion yen 19.9% 20.48 trillion yen 19.42 trillion yen 13.5% 10.4% 8.7% 9.6% 7.0% 4.3% 5.3% 2.7% 0.8% -2.8% -2.6% l t r r r r i y y y y y y h e h l s r r r r r e e e e c a c n u u p a a r a a r b b b b u J M g u u a u u a A o J r m t m m r u n n M c M b e e e b a a A t v c e e J O J p o e F F e N D S -11.9% 2019 2020

Jan.-Mar. March 3.34 trillion 0.79 trillion yen yen February Jan.-Mar. 1.23 trillion yen January 4.21 trillion 1.33 trillion yen yen

2012 2018 2019 2020 -53.1%

Source: Prepared by the JTA based on data from National Tourism Survey (JTA)15 Part II: Impact of COVID-19 on Tourism and the Countermeasures (3)

Total number of nights stayed in March 2020 was 23.61 million, declining by 49.6% from March 2019. Room occupancy rates plunged to 31.9% in March 2020.

(Figure II-4) Total Number of Nights Stayed (Figure II-5) Room Occupancy Rates (million guest nights) 70 (%) 58.3 60 100 47.3 46.9 46.5 47.3 50 45.4 44.5 43.2 39.8 43.8 39.4 42.0 42.1 40 37.4 50.0 80 30 36.4 37.7 38.5 38.7 36.4 36.8 33.5 23.6 31.1 31.6 33.4 36.8 34.3 20 32.6 69.0 64.7 64.7 22.4 62.8 62.8 62.9 62.762.9 10 61.0 10.1 60.3 8.3 8.3 8.4 8.6 8.5 9.6 8.3 6.9 9.0 7.7 7.8 9.7 4.9 1.2 57.6 0 60 53.2 54.052.7 2019/1 2 3 4 5 6 7 8 9 10 11 12 2020/1 2 3 International visitors Japanese travelers (%) (Figure II-4) YoY Changes in Total Number of Nights Stayed 16.9 31.9 22.2 14.1 30 40 12.7 13.3 10.4 9.3 8.8 9.6 20 9.4 1.7 1.0 6.5 1.3 5.1 -1.7 10 0.4 -3.3 2.7 -2.4 -1.5 3.3 -2.5 -1.7 -4.3 0 8.4 7.7 5.6 3.7 2.4 0.5 -10 -0.5 -0.8 -2.5 -2.1 -2.2 -5.0 -4.5 -20 -0.3 0.0 -6.0 20 -30 -40 -41.3 -41.8 -50 -49.6 -60 0 -70 2019/1 2 3 4 5 6 7 8 9 10 11 12 2020/1 2 3

-80 -85.9 -90 2019/1 2 3 4 5 6 7 8 9 10 11 12 2020/1 2 3 Source: Prepared by the JTA based on data from Overnight Travel Statistics Survey (JTA) Total International visitor Japanese traveler Note 1. Secondary Preliminary figures for January 2019 to February 2020; Primary Preliminary figures for March 2020. 16 Part II: Impact of COVID-19 on Tourism and the Countermeasures (4)

According to surveys of accommodation services, the percentage of respondents reporting a 70% or more decline in the number of reservations received was 2% for February and 30% for March. The percentage jumped to 90% for April onwards, after the national state of emergency was declared. About 50% of accommodation providers have already used government financial assistance programs, while about 40% plan to do so. (Figure II-6) COVID-19 Impact on Accommodation Services YoY changes in total number of reservations received YoY changes in sales reported by accommodation services by accommodation services (estimates for May and June) 2% 2% (estimates for May and June) February February 32% 17% 14% 16% 16% 2% (256 respondents) 27% 21% 17% 12% 18% 4% (255 respondents) 1% March 2% March 2% 3% 9% 26% 26% 33% (111 respondents) 5% 7% 7% 21% 32% 27% (111 respondents)

April April 2% 8% 90% (111 respondents) 5% 9% 86% (111 respondents) 2% May 1% May 3% 95% (111 respondent2s)% 3% 95% (111 respondents)

June 2% June (111 respondents) 8% 90% (110 respondents) 3% 7% 90%

0% 25% 50% 75% 100% 0% 25% 50% 75% 100% No decrease 0-10% decrease 10-20% decrease 20-30% decrease No decrease 0-10% decrease 10-20% decrease 20-30% decrease 30-50% decrease 50-70% decrease 70-90% decrease 30-50% decrease 50-70% decrease 70-90% decrease Usage of Government Financial Assistance Programs Financing Assistance Employment Adjustment Subsidy (Safety net loan/guarantee, etc.)

7 operators 15 operators 6% 14%

51 operators 61 operators 51 operators 47% 34 operators 55% 47% 31%

Received Considering application No plan to apply Received Considering application No plan to apply Source: Prepared by the JTA based on data from MLIT surveys (as of April 30, 2020) 17 Part II: Impact of COVID-19 on Tourism and the Countermeasures (5)

The number of reservations handled by major travel agencies in April and May 2020 decreased by more than 90% year on year. In particular, that for Japanese overseas travelers and international visitors to Japan declined to zero in April. The number of reservations handled by small and medium-sized travel agencies plunged by 88% in April and is expected to drop by a severer 91% in May. About 40% of these agencies have already used government financial assistance programs, while about 50% plan to do so. (Figure II-7) COVID-19 Impact on Travel Services

YoY changes in total number of reservations handled by travel agencies (estimates Total revenue travel services recorded by major agencies (estimates for May and June 2020) for May and June) 47 small/medium-sized 5,000 ▲ 3744 ▲ 4356 ▲ 4277 10 major agencies agencies 207 274 3554 4,500 ▲ 732 ▲ Overseas travel by Domestic travel by Travel by international *Handle almost ▲ 282 231 exclusively domestic 4,000 199 Japanese Japanese visitors travel by Japanese 158 3,500 0 133 145 87 2,552 3,000 2,321 2,519 2,274 -20 2,047 2,500 1,842 ▲ 14 1,745 2,000 1,748 -40 ▲ 22 1,500 1,000 1,888 31 -60 1,657 1,819 1 1,661 21 1,739 16 ▲ 51 1,411 1,286 1,298 656 500 65 103 437 0 10 -80 ▲ 67 0 283 205 ▲ 74 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 ▲ 81 ▲ 88 ▲ 88 ▲ 86 January February March April May June -100 ▲ 85 ▲ 96 ▲ 89 ▲ 92 ▲ 88 ▲ 99 ▲ 91 ▲ 91 (%) ▲ 97 ▲ 100 ▲ 100 February March April May June Overseas travel by Japanese Domestic travel by Japanese Travel by international visitors Usage of Government Financial Assistance Programs Financing Assistance Employment Adjustment Subsidy (Safety net loan/guarantee, etc.) 7 4 operators operators 15% 9% 18 operators 19 operators 38% 40%

24 22 operators operators 51% 47%

Received Considering application No plan to apply Received Considering application No plan to apply 18 (n=47 small/medium-sized agencies) (n=47 small/medium-sized agencies) Source: Prepared by the JTA based on data from MLIT surveys (as of April 30, 2020) Part II: Impact of COVID-19 on Tourism and the Countermeasures (6)

In the charter bus service sector, around 80% of operators faced a year-on-year decrease of 70% or more in transportation services revenue in March. This figure increased to 90% in April after the national state of emergency was declared, and is expected to remain at a severe level from May onwards. The fleet utilization rate is expected to decline by 95% from May onwards. (Figure II-8) COVID-19 Impact on Charter Bus Services Charter bus transportation services revenue (YoY changes) (estimates for May and June) Year-on-year changes in fleet utilization rate (%) (estimates for May and June)

February 45% 16% 10% 14% 14% 2% 54.5 (n=64) 48.4 50.0 45.9 March 4% 6% 13% 77% 43.1 40.5 42.9 2% 40.0 April 3% 3% 92% 30.0 Decreased 73% Decreased 89% 2% Decreased 89% May 2% 3% 92% 2% 20.0 11.6 June 3% 3% 8% 84% 10.2 2% 10.0 5.3 5.9 0% 25% 50% 75% 100% 0.0 No decrease 0-10% decrease 10-20% decrease 20-30% decrease February March April May June 30-50% decrease 50-70% decrease 70-90% decrease Usage of Government Financial Assistance Programs Financing Assistance Employment Adjustment Subsidy (Safety net loan/guarantee, etc.) 2 10 operators operators 3% 16%

27 operators 27 35 operators 42% operators 42% 55% 27 operators 42%

Received Considering application No plan to apply Received Considering application No plan to apply

Source: Prepared by the JTA based on data from MLIT surveys (as of April 30, 2020) 19 Part II: Japanese Domestic Travel Trends and Revitalization Strategies(1)

The first step to restarting regional revitalization through tourism will be to boost demand for Japanese domestic tourism as soon as possible once the COVID-19 situation begins to settle down. Japanese domestic travelers account for more than 80% of Japan’s tourism consumption, and 60% is related to visits to regional areas. The percentage of Japanese below the age of 40 who have travel experience has been on the rise recently. This trend is particularly evident in those below 20.

(Figure II-10) Domestic Tourism Consumption in Japan (Figure II-12) Percentage of Japanese with Domestic Overnight Travel Experience (trillion yen) 30 65%

4.8 25 4.4 3.7 4.5 3.5 60% 1.4 1.2 1.1 1.1 1.2 1.2 2.0 1.0 1.1 20 1.3 4.8 1.1 4.9 5.0 4.8 4.6 4.7 4.4 4.5 55% 15

10 50% 17.2 15.4 15.8 16.0 16.1 15.8 15.0 13.9 5 45%

0 2012 13 14 15 16 17 18 19 All ages Below 20 20s and 30s (Year) 40s and 50s 60s and 70s Consumption by international visitors to Japan Domestic consumption by Japanese overseas travelers 40% One-day trip Overnight trip 2012 2013 2014 2015 2016 2017 2018 2019

Note: “Regional areas” refers to prefectures excluding Saitama, Chiba, Tokyo, Kanagawa, Aichi, Kyoto, Osaka and Hyogo. Source: Prepared by the JTA based on data from National Tourism Survey (JTA) 20 Part II: Japanese Domestic Travel Trends and Revitalization Strategies(2)

Major factors inhibiting tourism are associated with the timing of taking holidays, which tend to be concentrated at certain periods of the year. Therefore, it is important to encourage dispersion of holidays. The number of Japanese taking domestic overnight trips has not increased in recent years, while total consumption and per-capita consumption have been on the rise. It is important to offer value-added travel plans and services in the face of population decrease.

(Figure II-14) Factors Inhibiting Tourism (2019) (Figure II-17) Number of Japanese Taking Domestic Overnight Trips and Couldn’t take a at desired period 34% Per-capita Consumption

(10,000 yen/person) Couldn’t take a vacation at the same time as the (10,000 people) person I want to travel with 31% 18,000 17,862 7 17,642 17,667 Economic reasons 27% 17,500 No particular reason 25% 17,176 17,169 17,173

17,000 To avoid crowds (because it was a high season) 16% 16,501 6.1 Have a pet to take care of 15% 6.1 16,500 6 (Figure II-15) Domestic Tourism Consumption in Japan by Month (2019)

(trillion yen) 16,002 4.0 16,000 Japanese travelers 3.6 5.6 3.5 5.5 International visitors 3.0 0.4 5.5 3.0 15,500 5.4 5.3 0.4 2.4 5.3 2.3 2.3 2.5 2.2 2.2 2.1 2.2 2.1 0.3 1.9 0.4 2.0 1.7 0.4 0.4 0.5 0.4 0.4 0.4 15,000 5 0.4 3.2 2012 2013 2014 2015 2016 2017 2018 2019 1.5 0.4 2.6 1.0 2.1 1.8 1.9 1.8 1.8 1.7 1.8 1.8 Number of travelers Consumption per capita 1.5 0.5 1.3 Source: Prepared by the JTA based on data from the JNTO, National Tourism Survey (JTA), 0.0 International Visitor Survey (JTA), and 2019 Annual Report on the Tourism Trends Survey (JTBF) January February March April May June July August September October November December 21 Part II: Situation of International Visitors to Regional Areas

Number of international visitors to regional areas in Japan has been increasing year by year, reporting 18.40 million in 2019. Regional areas have been a driving force of increase of the number of international visitors to Japan, particularly since 2016. In 2019, inbound tourism consumption in regional areas increased 1.6 fold compared with 2015.

(Figure II-19) Number of International Visitors to Japan by Region and Their Tourism Consumption in Regional Areas (10,000 people) 2,000 1,840 1,246.6 1,799 1,800 billion yen 1,616 1,600

1,400 1,270 1,200 758.3 1.6 times 1,020 billion yen 1,000

800 662 1,319 1,347 600 1,249 507 1,129 383 950 400 679 527 200 453

0 2012 2013 2014 2015 2016 2017 2018 2019 2015 2019 3 major metropolitan areas only Visit to regional areas 22 Source: International Visitor Survey (JTA) Note: “Regional areas” refers to prefectures excluding Saitama, Chiba, Tokyo, Kanagawa, Aichi, Kyoto, Osaka and Hyogo. Part II: International Visitors coming to Japan to Watch 2019 Rugby World Cup Matches: Consumption and Visits to Regional Areas

The 2019 Rugby World Cup (RWC) provided a golden opportunity to attract international visitors, having a remarkable impact on local economies. Total number of nights international visitors from major qualifying countries stayed in regional areas was significantly larger during RWC. Per- capita consumption of international visitors related to RWC was 2.4 times as large as that of other visitors who were not.

(Figure II-22) (Figure II-23) (Figure II-27) Changes in Total Number of Nights International Visitors from Change in Number of International Per-Capita consumption by Major 2019 RWC-qualifying Countries Stayed(September and October) Visitors to Japan 2019 RWC-qualified International Visitors to RWC Countries 9.0 times 764 385 thousand thousand people yen/person

590 thousand people

159 National thousand average 3.8 times yen/person 1.33 times

2.1 times 2.3 times 1.9 times 1.9 times

Didn’t watch the Watched the 2018 2019 Hokkaido Iwate Fukuoka Kumamoto Oita games games Note 1. Major 2019 RWC-qualifying countries refer to the following seven countries: USA, Canada, UK, France, Russia, Australia and Italy. Note 2. Created based on data from surveys of accommodation services with at least 10 Source: Prepared by the JTA based on data from the JNTO on the number of international visitors to Japan, employees. International Visitor Survey (JTA), and Overnight Travel Statistics Survey (JTA) Note 3. Preliminary figures for 2019. 23 Part II: Encouraging Repeat Visitors from East Asia to Visit Regional Areas (1)

About 60% of international visitors to Japan are repeat visitors, and more than 80% of such visitors are from four East Asian countries/regions. Among visitors from Hong Kong and Taiwan, the percentage of visitors who visited Japan at least 10 times is high, as opposed to visitors from China, where about half of visitors are first-time visitors. Generally, per-capita consumption tends to grow as the number of repeat visits increases. Per-capita spending and purchase rates of local products, such as agricultural products and alcoholic beverages, by repeat visitors is high.

(Figure II-30) Percentage of Repeat Visitors to Japan by Country/Region (Figure II-33) Tourism Consumption Per Capita by Number of Visits (10,000 yen/person) Other Taiwan 17.4% 24.6% 23.0 Hong Kong 19.6 12.8% 15.6 13.6 11.6 South Korea 10.1 China 23.2% 6.3 7.0 22.0% Number of repeat visitors: 14.2 million First-time Repeat First-time Repeat First-time Repeat First-time Repeat Share of repeat visitors: 61.9% visitor visitor visitor visitor visitor visitor visitor visitor (Figure II-31) Composition of Number of Repeat Visits South Korea Taiwan Hong Kong China by Country/Region (Figure II-34) Per-capita Spending and Purchase Rates by Item and 6.8% 6.3% 2.1% 3.7% 2.2% by Number of Visits 19.4% 14.7% Fresh agricultural products Alcoholic beverages 29.7% 23.6% 31.7% 29.9% Per-capita spending (thousand yen) Per-capita spending (thousand yen) 40.2% Purchase rate Purchase rate 14.8 53.2% 12% 5.3

61.1% 9% 18% 17% 66.2% 4.0 10.1 3.6 8% 58.0% 13% 74.2% 12% 66.2% 66.4% 2.7 5.8 53.6% 4% 5.2 40.0% 24.1%

0.0 0% 12.3% 14.4% 0.0 0% 1st time 10 times or 1st time 10 times or 1st time 10 times or 1st time 10 times or more more Hong Kong Taiwan South Korea Southeast China Australia USA Europe more more Asia Taiwan China Taiwan China 1st time 2-9 times 10 times or more Source: International Visitor Survey (JTA) 24 Part II: Encouraging Repeat Visitors from East Asia to Visit Regional Areas (2)

In general, repeat visitors tend to travel to regional areas. In particular, many repeat visitors from Taiwan travel across Japan. In contrast, destinations chosen by visitors from China are relatively limited, but those visitors show a keen interest in traveling to new destinations in regional areas. Many visitors begin to develop an interest in visiting Japan again while traveling in Japan. It is important to make visitors feel that Japan has more to offer during their . (Figure II-35) Destinations Chosen by Number of Visits (Figure II-36) Comparison in Interest in Visiting New/Familiar Destinations 1st visit 2nd-9th visit 10th visit or more More than 70% of repeat visitors from China shows their interest in visiting a new destination.

38.3% a

e New destination 36.4% r o a

e 53.1% K r o h t K 19.1%

u h o t Familiar destination 13.6% S u o 46.9% S 46.0% New destination 62.0% n

a 72.0% w i a 22.0% T Familiar destination 30.0% 60.0%

n 48.0% a New destination 72.0% w i a a 76.0% n T i h

C 24.0% Familiar destination 38.0% 66.0% 1st-time visitor 2nd-times to 5th-time visitor 6th-time or more visitor (Figure II-41) The Timing when International Visitors Became Interested in Visiting Japan Again a n i h C 75% 13% 12%

During their previous visit to Japan After their previous visit to Japan No particular time (regular visitors, etc.)

Source: Prepared by the JTA based on overseas survey results and “Tourism/Leisure Visitors” in International Visitor Survey 2019 (JTA) 25 Part II: Attracting International Visitors to Regional Areas by Utilizing Local Characteristics (1)

The pattern of visit of international visitors to regional areas varies from prefecture to prefecture, as indicated by tourism consumption, the total number of international visitors and the average number of nights stayed. It is important for each prefecture to develop strategies to increase the number of international visitors and nights stayed by utilizing specific local characteristics. (Figure II-51) Statistics of International Visitors to Regional Areas: Average Number of Nights Stayed; Total Number of Visitors; and Consumption Hokkaido and Okinawa perform well in all three indicators. boasts an outstanding number of visitors, which contributes to larger consumption within the prefecture. In Kagawa and Kagoshima, in comparison, the average number of nights stayed is relatively high, implying larger consumption within the prefectures. → s

t The size of each circle is correlated to h

g consumption by international visitors to 5 i n

the relevant prefecture. t s Hokkaido e u g

f o

r e b m

4 u

n Okinawa

e g a r e

v Kagawa A NiigataKagoshima Fukui Ibaraki 3 Kochi Gunma

Aomori Miyagi Nagano Fukuoka Yamagata Fukushima TottoriOkayama 2 Miyazaki Hiroshima

Ishikawa Gifu

Kumamoto Shizuoka Oita 1 Yamanashi

Nara

0 Number of visitors (10,000 people) → 0 50 100 150 200 250 300 350 Note: “Regional areas” refers to prefectures excluding Saitama, Chiba, Tokyo, Kanagawa, Aichi, Kyoto, Osaka and Hyogo. Source: International Visitor Survey 2019 (JTA) 26 Part II: Attracting International Visitors to Regional Areas by Utilizing Local Characteristics (2)

Kagawa ranks first in terms of the rate of the total number of guest nights of international visitors (16 fold, compared with 3.9 fold for national average, from 2012 to 2019). This is attributable to attractive tourism resources, such as unique art museums and scenic beauty, making Kagawa a popular choice as a main destination. Compared with other prefectures in the Shikoku region, consumption in Kagawa is notably large. 16.0 (Figure II-52) Growth in Total Number of Nights of International Visitors’ Stays for Each Prefecture (times) (2012-2019)

8.3 8.0 7.7 6.8 6.5 6.0 5.8 5.7 5.6 5.6 5.5 5.4 5.0 4.9 4.7 4.7 4.6 4.6 4.5 4.5 4.4 4.3 4.2 4.0 3.9 3.9 3.8 3.8 3.7 3.6 3.5 3.5 3.5 3.4 3.3 3.2 3.0 3.0 2.8 2.8 2.7 2.5 2.4 2.3 2.1 2.1 1.8 i i i i i i i i i i i i e a a a a a r a a a a o a o a a a e a a a a a o o a a a r u e a a e a o o e k k k h h g u h g h i t t t t f t t t r i k k k i i i y g o n d g b g o n g s c w w w w a a k c c a i i a i m m m a m t m m m m o m a a m o a i k k h i i o i i a o i r M a t a o a a s z a u a a a a y G O u o a h h y a a g n a a m g r i c w s o h h u h h u i N y A h a o m t g A k a S a n g g g n I i k y y y i F a u o m K e i S K i C o s s k s s z i T b a a T E y M O i k H g a a a a a a o a I v i k h N A o u u u o T G h m h o a k k N n r a T m K s S k k m g m i F

a O I M S a a l S u H N O u o a a a H Y a K K F T Y K W Y n o i t a N (Figure II-54) Tourism Consumption by International Visitors to Shikoku Prefectures Visitors to Kagawa spent 14.6 billion yen within the prefecture, accounting for 25% of the total spending during their visit to Japan. This outstanding figure is attributable to the location’s attractive tourism resources that encourage many visitors to plan longer stay. On the other hand, the other three prefectures in Shikoku, receive a smaller amount (and percentage) of spending in each prefecture: 1.9 billion yen (11% of total) in Tokushima, 2.5 billion yen (12%) in Ehime, and 1.5 billion yen (13%) in Kochi.

Kagawa Tokushima Ehime Kochi

Tokushima Ehime Kochi 1.9 billion yen 2.5 billion yen 1.5 billion yen 11% Kagawa 12% 13% Shikoku Shikoku Others 14.6 billion yen (excluding Others Kagawa Others Kagawa (excluding Kagawa 12.5 billion yen 25% Others Shikoku 4.3 billion yen 2.6 billion yen Tokushima) 5.8 billion yen 3.2 billion yen Ehime) 1.2 billion yen 21% 3.8 billion yen (excluding 25% 15% 4.3 billion 27% 15% 4.6 billion 33% 11% Kochi) Shikoku Ehime yen Osaka yen Other (excluding 0.9 billion yen Other 2.8 billion 13.8 billion yen Kagawa) 1.3 billion yen 1.5 billion yen Osaka 5% 25% 21% Outside Outside Osaka 24% 3.8 billion yen Tokyo 6% 14% yen Tokyo 5.0 billion yen Outside Osaka Kochi 5.9 billion yen Shikoku Tokyo 8.7 billion yen 7% Shikoku Tokyo 2.4 billion yen 25% 30% 1.8 billion yen Outside 0.8 billion yen Shikoku 12% 7.0 billion Kyoto 15% 10.9 billion 1.6 billion yen 28% 1.5 billion yen 5% 16% Shikoku 5.1 billion yen 9% 14.1 billion yen 13% 9% yen 40.1 billion yen yen 62% 64% 68% 67% Source: Overnight Travel Statistics Survey (JTA) and International Visitor Survey 2019 (JTA)27 Part II: Popular Local Foods among International Visitors

According to a survey of the most important leisure activity planned for the visit to Japan, the most common answer was “eating Japanese food,” chosen by 27.2% of the respondents. The survey showed that many visitors are satisfied with unique local food, which suggests that food has a potential to serve as a tourism resource.

(Column Figure II-7-1) Activity Planned by International Visitors before visiting Japan Japanese food/Japanese sake 27.2% Beautiful scenery/nature experience 19.0% Shopping 13.3% Experiencing Japanese culture 8.4% Hot spring bath 8.4% Theme parks 7.3% Nature experience/outdoor activities 4.0% Galleries, museums 3.8% Exploring downtown areas 3.6% Others 4.9% (Column Figure II-7-5) Foods Most Enjoyed by International Visitors Among South Korean visitors, various local specialty meat dishes are popular, such as mutton barbecue in Hokkaido, motsu (offal meat) dishes in Fukuoka, and steak in Okinawa. This suggests that food plays the role of conveying the diversity of local characteristics. South Korea Taiwan Hokkaido Hokkaido

Seafood 27.7% Confectioneries Meat Meat 19.7% Seafood 18.6% Other 11.9% 10.9% Sushi Ramen Other [1] Crab Ramen Other Other [1] Mutton [1] Crab 14.2% [2] Sashimi Yakiniku 9.9% barbecue [2] Seafood rice 18.5% 9.9% 19.0% 21.8% Ice cream 17.8% [3] Seafood rice bowl Chocolate Beef [2] Pork rice bowl bowl Soup curry Biscuits/ Mutton Soup curry Hotel buffet [4] Sea urchin cookies barbecue Fukuoka Fukuoka

Seafood Meat 28.4% 8.2% Soba/ Other Meat 38.8% Sushi Ramen Other [1] Yakiniku [2] Beef udon Ramen Seafood Japanese Sushi Other Grilled eel [3] Tonkatsu cuisine [1] Motsu/motsu nabe 18.0% 17.7% 6.1% 11.3% 30.5% 12.8% 6.4% 13.5% Sashimi [4] Motsu/motsu nabe 8.5% [2] Hamburg steak Mentaiko [5] Mizutaki Okinawa Okinawa

Other Soba/ Meat 34.7% Japanese udon Other cuisine Soba/ Meat 35.9% Sushi Japanese Ramen Other [1] Yakiniku Ramen Seafood Other 9.1% udon 18.1% cuisine 8.7% 19.5% [2] Beef 18.7% 10.2% 10.2% 19.0% [1] Steak 8.7% Bitter gourd 7.1% Okinawa [3] Ishigaki beef Okinawa [2] Beef Chanpurū soba [4] Agu pork soba

Source: International Visitor Survey 2018 (JTA) 28 Part II: Measures Taken by Ryokan which Succeeded in Raising Room Occupancy Rate by Attracting International Visitors

The growing number of international visitors to Japan leads to higher room occupancy rates of ryokan, but such effect is smaller than that the case of types of accommodation. Among various measures taken by ryokan, particularly familiar options are facility renovation, employment of staff with foreign language skills, etc., which have proven effective in 80% of ryokan that have introduced these measures, though the rate of implementation is lower than that of multilingual services and improved communication environment, experienced the increase of room occupancy rates. (Figure II-64) (Figure II-60/61) Analysis of Changes in Room Occupancy Rates Effect of Growing Number of Inbound Visitors on (Changes between 2012 and 2019) Ryokan’s Room Occupancy Rates

Room occupancy Didn’t change rates rose All Accommodation Types 61.2% Ryokan 38.8% (Ryokan, hotels, etc.) 35.5% (2012) → 39.5% (2019) (+4.0%) 20% (Figure II-65) Impact of Measures on Room Occupancy Rates Room occupancy rates 54.8% (2012) → 62.1% (2019) (+7.3%) Figures in parentheses indicate an introduction rate. 20% Multilingual service (website, signage, etc.) 49% (92%) 51% (61%)

10% Improvement of payment facilities 55% (65%) 45% (34%) 9.4% Improvement of communication network (Wi-Fi 10% 7.3% network, etc.) 49% (96%) 51% (63%) 7.3% 4.0% Renovation of the facility 80% (46%) 20% (7%) 3.8% 2.1% Redesign of guest rooms (western-style furnishing) 69% (42%) 31% (12%) 0% 0% Accommodation service withdrawing from meal -5.4% service (to encourage dining out) 67% (23%) 33% (7%) -5.9% Response to dietary habits 81% (50%) 19% (7%) -10% Employment of staff with foreign language skills 86% (46%) 14% (5%) -10% Changes in number of rooms offered Foreign language training 91% (38%) 9% (2%) Changes in number of rooms used by international guests -20% Changes in number of rooms used by Japanese guests Employment of international staff 70% (54%) 30% (15%) 客室稼働率差

Employment of overseas agent services 73% (31%) 27% (7%) Note 1. Room occupancy rates = Number of rooms used / Total number of rooms offered; Total number of rooms offered = Number of rooms used / Room occupancy rates Overseas advertising 69% (35%) 31% (10%) Note 2. Please note that the number of rooms used is divided into Japanese and international guests simply in proportion to the percentage of the total number of guest nights for the two groups, which inevitably involves substantial statistical tolerance. Room occupancy rates rose Didn’t change Note 3. It should be noted that an increase/decrease in the number of rooms offered can lower/raise room occupancy rates. Note 4. Preliminary figures for 2019. Source: Prepared by the JTA based on Overnight Travel Statistics Survey (JTA) and other survey results 29 Part III: Measures Taken in FY2019

1. Environmental Development to Introduce Infrastructure that Makes 2. Development of New Regional Tourism Content (continued) Foreigners’ Stays Truly Enjoyable Development of travel experience programs for cruise passengers to increase Speedy development of multilingual service and Wi-Fi passenger satisfaction, and plans to refer cruise passengers to local commercial environment, etc. districts (Tourist destinations, local railways, cultural assets and national Nighttime leisure (nighttime events, nighttime transportation, etc.) parks and farm stays) Promotion of trains designated for tourism and train that allows cyclists to bring Improvement of MaaS and access of transportation to tourists with their bikes destinations (buses, taxis, rental cars, etc.) Promotion of , etc. Improvement of productivity to raise the profitability of Ryokan and hotels, as well as the employment of international staff, etc. 3. Appropriate Role Sharing and Strengthening of Cooperation Effective implementation of “Emergency plan to ensure the safety between the Japan National Tourism Organization and Regional and security of international visitors to Japan” (September 2019), Organizations (Local Governments and Destination etc. Management/Marketing Organizations*) Clarifying the roles of local governments and destination management/marketing organizations (DMOs) 2. Development of New Regional Tourism Content Enhancement of systems for JNTO to serve as a center to disseminate Holding “Japan Cultural Expo” across the country, exhibiting and utilizing tourist information and attractions of each region across the country to national treasures and important cultural properties the world Setting up comfortable facilities in national and enhancement of nature Enhancement of digital marketing systems of JNTO to provide research experience programs results to relevant districts Extending opening hours of public facilities and utilization of private- Focus of global campaigns from Europe/USA/Australia to East Asia sector services (China, South Korea, etc.) Drastic expansion of exhibition spaces in Sannomaru Shozokan Development of new markets (the Middle East, Central and South (Museum of the Imperial Collections) America) to attract tourists from broader areas Redesigning the Tokyo National Museum and applying the result effect to other museums; expanding the exhibition of state-owned cultural *DMO: Destination Management/Marketing Organization properties in local museums in regions related to the properties Development of Japanese traditional house and farmhouse establishment 4. Facilitation of Immigration Procedures, etc. to offer appropriate farm stay experiences; enhancement of farming Introduction of face authentication systems to accelerate immigration experience programs procedures Development of living history programs (that incorporate historical items, Strategic relaxation of visa regulations; expansion of duty-free shop activities and information related to specific cultural properties) Increasing the number of flight departure/arrival slots (40,000 slots each Castle stay, temple stay, glamping (deregulation, applying successful in Haneda and Narita); completion of Naha Airport’s second runway; approaches to other locations) increasing direct international flights to/from regional airports Revitalization of snow resort areas and Ryokan Measures against over tourism 30 Part IV: Measures to be Taken in FY2020

◆Countermeasures against COVID-19 in the Field of Tourism Due to the impact of the COVID-19 outbreak, the number of international visitors from around the world has significantly decreased. Domestic tourism demand has also plunged as a result of consumers staying home as requested by the government, refraining from booking, cancelation of booked trips, etc. This has severely affected a number of related industries, not only travel services, accommodation services, but also regional transportation services, and merchandisers in regional areas. In order to address this situation and achieve a future recovery of the tourism industry, support measures will be implemented with a focus on the following three areas: 1.)prevent the spread of infection and put an end to the outbreak as soon as possible; 2.) providing support to maintain employment and continue business running and develop infrastructure to prepare for a post-crisis turnaround; and 3.) execute a strong domestic demand stimulus package when the crisis has settled down. The condition of recovery from the crisis will be carefully assessed for each country/region. Activities to attract tourists will be resumed from where possible to recover inbound tourism demand, thus getting the industry back on track and realize the Tourism-oriented Country vision―initiative to revitalize local economy centering on tourism throughout the country. 〇 A help desk will be installed in each district bureau to receive requests from local tourism-related business operators and provide tailored responses.

〇Support to maintain ○ Subsidy program for sustaining businesses employment and continue ○ Raising payment limits for Employment Adjustment Subsidies; providing video instructions on application procedures, etc. business 〇 Financing support through expanding the framework for effectively interest-free and unsecured loans, and providing safety net guarantees, etc. ○ Deferral and reduction of fixed asset tax and other taxes and public dues ○ Postponed payment and reduction of NHK fees 〇Infrastructure ○ Development of environment to ensure tourists’ safety , including supports to formulate appropriate guidelines in tourism development to prepare industries for a turnaround ○ Dispatching advisors to accommodation facilities to help with applications for subsidy programs, formulation of renovation plans, etc. as well as dispatching licensed guide interpreters to provide language training to employees, etc. ○ Introducing preventive measures against COVID-19 to tourist facilities and improving tourist destinations and related transportation services to accept international visitors ○ Improvement of local tourism resources 〇Stimulating demand for ○ “Go To Travel” Campaign that offers the following benefits: Japanese domestic travel ・ Discount on one-day trip plans in addition to overnight trips. ・ Issue discount coupons that embrace a wide range of retailers from shops, restaurants, tourist facilities to transportation and other services in regional areas ○ Consideration of new styles of tourism in line with the New Lifestyle concept beyond COVID-19 〇Recovery of inbound ○ Joint advertising by JNTO and airline companies, etc. travel ○ International promotion of Japan’s tourist destinations and attractions by JNTO, utilizing media advertising and other videos and employing popular influencers

◆Strategies beyond COVID-19 Aiming to realize the tourism-oriented country vision, improvement of the environment to accept international visitors and enhancement of local tourism resources will be implemented in FY2020. 31