Prewar Tourism Promotion by Japanese Government Railways Koichi Nakagawa

Features Railways and Tourism

Japan’s balance of payments in interna- high growth, the income from tourism was proposal. There also was an intention to tional tourism recorded the largest deficit US$116 million, ranking seventh in the show visiting westerners that Japan was in the world again in 1996; a far greater country’s foreign currency revenue. To as civilized as the great western powers, amount of yen was spent abroad by more understand the significance of this not to mention that the incoming foreign than 16.5 million Japanese travellers than amount, 1960 steel exports ranked top, currency would contribute to reinforcing the money spent by visiting foreign tour- earning US$388 million at the then ex- the nation’s wealth and military strength. ists in Japan. Although Germany exceeds change rate of $1 to ¥360, and even ex- In March 1893, a voluntary organization Japan in the amount of money spent by ports of Japan’s famed transistor radios called Kihin-Kai (The Welcome Society of Germans abroad, its deficit in interna- earned US$144 million, much the same Japan), headquartered in Tokyo Shokokai tional tourism has been kept compara- as tourism income. (the predecessor of the present Tokyo tively small because the country enjoys a Tourism has long been considered an easy Chamber of Commerce and Industry), was relatively larger number of visiting foreign source of foreign currency and this policy formed to promote foreign tourism. Eiichi tourists. is still adopted commonly by many de- Shibusawa, who is famous as the found- In the 1990s, the number of tourists visit- veloping countries. Japan was no excep- ing father of Japanese capitalism, was ing Japan exceeded 3 million a year, tion until the 1950s, and railway operators General Secretary; he was assisted by mostly from East and Southeast Asia visit- were the first to take the lead in promot- Takashi Masuda, regarded as the head of ing Tokyo Disneyland and other theme ing international tourism. the Mitsui zaibatsu (industrial and finan- parks. However, the income from these cial combines). Masuda had visited Eu- tourists was only a drop in the bucket rope and believed that Paris flourished when as many as one in seven Japanese Dawn of Tourism Promotion because the city had a successful system travelled overseas during these years. As for attracting foreign tourists and encour- a result, Japan’s 1996 deficit in interna- The idea of attracting foreign tourists to aging them to spend money. tional tourism offset 39.5% of the nation’s Japan for the sake of promoting national In those days, the estimated annual num- trade surplus. interests was first proposed in the early ber of westerners visiting Japan was Foreign currency from tourists visiting Ja- 1890s by concerned politicians and fin- probably no more than 10,000, a more- pan was a precious income for the coun- anciers. A fervent desire to correct exist- than-obvious reason for establishing try until overseas travel was deregulated ing unequal treaties—the most critical Kihin-Kai. Shibusawa and Masuda ar- for Japanese. Back in 1960, when the diplomatic problem in the Meiji Era dently tried to establish a system of tour- Japanese economy was on the brink of (1868–1912)—was apparently behind the ism at the non-government level before the administration involved itself in the business. They were confident that a pros- pering tourism industry would contribute to national interests. They persuaded hotels and inns to improve their buildings and facilities, urged upgrading the qual- ity of tour guides and interpreters, and arranged tours of noted and historic places. English guidebooks and maps were written and distributed to arouse foreigners’ interest in visiting the country. Kihin-Kai was funded by donations from railways and international shipping companies, hotels and inns, department stores, profiting from foreign tourists. However, in 1906, all major railway companies were nationalized into government railways in line with the Railway National- ization Bill (JRTR 4, pp 42–45), radically Observation car of limited-express train running between Shimbashi and Shimonoseki in 1912 (Transportation Museum) slashing the resources of Kihin-Kai and

22 Japan Railway & Transport Review • March 1998 Copyright © 1998 EJRCF. All rights reserved. Establishment of nization to establish sound international Japan Tourist Bureau tourism. Until the Bureau was established, foreign The Japan Tourist Bureau was a semi-gov- tourists to Japan usually hired Japanese ernmental organization founded to pro- guides at their port of entry, and relied on mote international tourism. It operated the guides’ itineraries. These guides in- under the direction of the Japanese Gov- creased the tourists’ costs by demanding ernment Railways, which managed the huge commissions from hoteliers, spoil- state-owned railways. The Bureau pro- ing the impression of Japanese tourism. moted tourism for the railways of Korea Consequently, eliminating the guides and Taiwan (Japanese colonies at that through public relations efforts by the time), and the South Manchuria Railway Bureau was an urgent matter. (acquired under terms of Treaty of Ports- To assist foreign tourists and discourage

Eiichi Shibusawa (1840–1931) mouth ending Russo-Japanese War (1904– malicious guides, English-speaking per- —The founder of modern Japanese capitalism 1905)), and shipping lines, such as sonnel were provided at major railway (Shibusawa Memorial Museum) Nippon Yusen, and Toyo Kisen. It also stations and on express trains. It was rea- disrupting its operation. However, the assisted service facilities, such as the Im- soned that this would limit hiring of guides imminent collapse was averted by Yoshio perial and Fujiya hotels, and the to sightseeing at specific spots, thereby Kinoshita, an enlightened government Mitsukoshi and Takashimaya department improving the image of Japanese tourism railway official. He had studied in Eu- stores. and defining a role for the Bureau. rope and was well aware of the necessity The Bureau’s establishment was supported Kinoshita’s policy for promoting interna- for promotion to attract foreign tourists. by Takashi Hara, Interior Minister and tional tourism was based on his personal The Japan Tourist Bureau (predecessor of President of the Japanese Government experiences during stays in America and Japan Travel Bureau (JTB)) was founded Railways. Seijiro Hirai, Vice-President of Europe from 1904 to 1907. in March 1912 under his leadership. JTB the government railways, played a vital is now one of the three largest travel agents role in shaping the Bureau. Hirai had at- in the world. tended the International Railway Congress International Railway Links in 1910 and inspected the tourism sys- tems and facilities of Switzerland, recog- The Japanese Government Railways had nizing that provision of such facilities another reason for being actively commit- would contribute to Japan’s national in- ted to international tourism. terests. The Treaty of Portsmouth mandated a par- Behind the commitment of high-ranking tial transfer of Russia’s railway rights in government officials to promote tourism Manchuria, south of Changchun, to Japan. was a compelling need for foreign cur- This gave birth to the South Manchuria rency to redeem large amounts of foreign Railway Company which provided links bonds issued to finance the Russo-Japa- with Europe via the Russian railways. nese War. No doubt the business of at- During the Russo-Japanese War, the Japa- tracting foreign tourists was considered a nese military had built supply railway lines vital source of hard currency. through Korea, which permitted strength- It should also be noted that middle-man- ened international links with Japan’s do- agement railway officials, who had been mestic lines at the War’s end. addressing the issue of promoting inter- These developments gave Japan’s domes- national tourism since the early 1900s, tic railways the prospect to become a vi- made efforts to persuade high-ranking of- tal link in the around-the-world tourist ficials to recognize the need for tourism route by establishing a connection with promotion. Kinoshita was manager of the the transcontinental railroads in North Yoshio Kinoshita (1874–1922) passenger services and he described the America. —The founder of the Japan Tourist Bureau (now JTB) (Transportation Museum) necessity for a semi-governmental orga- The domestic railways could also be in-

tegrated into the circular tour route around to Eastern Asia and Volume 1 entitled the Eurasian continent by connecting to English-language Guidebooks Manchuria & Chosen (Korea) was pub- the regular steamer services via the Indian lished in February 1913. It contained Ocean and Suez Canal. An official English guidebook is said to many detailed city plans similar to Talks between Japan and Russia for joint have been planned as early as 1908 to Baedeker’s Guides (the world’s foremost rail transport started in June 1907 at St. provide accurate and detailed travel in- guidebooks published in German, English, Petersburg. After a series of negotiations, formation for foreign visitors, as well as and French), but unlike Baedeker’s, dif- joint through traffic started in April 1910 to defeat dishonest, profiteering guides. ferentiated itself using many photographs. between the Japanese Government Rail- Prior to this plan, some Englishmen living The Times (of London) praised it as ‘an ways and the Dongqing Railways (the in Japan had planned a guidebook to Ja- excellent guidebook for English speaking Russian-controlled railways in North East pan in the 1880s, later published as one tourists’. China). In the following year, this link- of the famous series of Murray’s guide- Volumes 2 and 3 were published in July age was extended, through the Trans-Si- books. In the 1900s, American editors 1914, covering northeast and southwest berian Railway, to other major Russian also came to Japan to write a guidebook. Japan, including Hokkaido, Honshu, cities including Moscow and then Rus- Shikoku, and Kyushu. Volume 4 cover- sian-controlled Warsaw. An Official Guide to Eastern Asia, ing China was published in April 1915. 1910s A notable event preceding these publica- Since the official guidebook was to be a tions was the introduction by the Domestic Railways publication of the Japanese railways, it Japanese Government Railways of round- was determined that it should supersede the-world and eastern-hemisphere excur- The first limited express in Japan was in- previous guidebooks compiled by foreign- sion tickets on 15 September 1913. troduced in 1912 with one train per day ers. Kinoshita’s concept for the framework The world drifted into WWI and although in each direction between Shimbashi (To- was grand and global. The four volumes Japan sided with the Allies, its status re- kyo) and Shimonoseki (Western tip of included Manchuria and Korea, as well mained more or less neutral and exports Honshu). The train was composed of sec- as the rest of China extending west be- of industrial products, and shipping ond-class passenger coaches and sleep- yond the Great Wall. thrived. In the meantime, Southeast Asia ers, first-class sleepers, and a special The series was called An Official Guide (then known as Nanyo or the South Seas) saloon-cum-observation coach, all of which were luxuriously designed with foreign tourists in mind. All other Japa- nese passenger trains at the time had three classes of coaches, indicating the appar- ent aim of serving foreign tourists and wealthy Japanese travellers. The crew of this limited express had com- pleted an English course at the Central Training Institute which succeeded the English Conversation School for Railway Employees established earlier in Septem- ber 1908. The first limited express, nicknamed Fuji in 1929 after Mt. Fuji, maintained its two- class composition until 1933.

An Official Guide to Japan (JGR, 1933), and A Guide Book for Tourists in Japan (Kihin-Kai, 1910) (Author)

24 Japan Railway & Transport Review • March 1998 Copyright © 1998 EJRCF. All rights reserved. a result, the government decided to cre- ate a department in charge of tourism promotion within the Japanese Government Railways. The basic planning was conducted by the International Payment Improvement Council of the Hamaguchi Cabinet. The Council recommended stepped-up international propaganda, maintenance of sce- nic spots, and development of tourist resorts, accommodation facilities, and transportation.

Board of Tourist Industry The Board of Tourist Industry was created in April 1930 within the Japanese Gov- ernment Railways. At the start, the Board was a small organization composed of a director, two managers, two administra- tive clerks, 15 subordinate clerks, and three assistant engineers. The Board took charge of tourism promotion including Extensive advertising inside the front cover of A Guide Book for Tourists in Japan promoted shipping lines and department stores, etc. (Author) revision of guidebooks, distribution of posters, etc. Overseas promotion and East Asia had become big markets for have caused enormous difficulties to then offices were also set up by the Board in Japanese products. on-going revision work of Volume D. Against this background, the Japanese The volume numbering was changed Government Railways decided to include probably because it was assumed that the Southeast Asia in the guidebook project, second and third volumes would become and published a fifth volume covering the Volumes B and C, respectively. However, East Indies in 1917. they would later be combined into one guidebook, published as An Official Revisions Guide to Japan in 1933. Good guidebooks must be updated and revised continuously to provide the latest information, or risk becoming outdated. Government Policy in 1930s However, revision of An Official Guide to Eastern Asia did not go as planned. Re- The policies on attracting foreign tourists vision started with the Volumes 1 and 4. in the 1910s were formulated by the Japa- The revised Volume 1 added Siberia to its nese Government Railways. However, in original coverage of Manchuria and Ko- the 1930s, their tourism undertakings rea. The revised fourth volume was re- were made mainly in accordance with ex- named Guide to China and published as ternal requests and to counter the eco- Volume D in April 1924; this guide was nomic depression. subtitled With Land and Sea Routes Be- The government demanded measures to tween the American and European Con- earn foreign currency at the 56th Impe- tinents, emphasizing the attraction of rial Diet (parliament) in 1929; the request Japan to round-the-world tourists. The apparently originated from the Japan Tourism promotion poster for Japanese Government Railways during 1930s Great Kanto Earthquake of 1923 must Chamber of Commerce and Industry. As (Japan National Railways: A Centennial Photo History)

major cities such as New York, Paris and London. However, the outbreak of WWII in 1939 and the cancellation of the sched- uled 1940 Tokyo Olympics both adversely affected international tourism.

New Guidebook

An Official Guide to Japan (1933) only mentions the name of the Japanese Gov- ernment Railways in its preface. It is not known whether it was published by the Passenger Department of the Transport Bureau, which edited a concise Japanese- language guidebook to Japan, or by the Board of Tourist Industry.

Japan, The Official Guide, 1941 Gamagori Hotel in Aichi Prefecture (Japan Hotel Guide, 1959) In 1941, An Official Guide to Japan was revised and renamed Japan, The Official This Association first carried out the afore- cially unprofitable. Also the depression Guide, with the publisher clearly identi- mentioned 1930 survey of hotels, the re- forbade the government subsidizing the fied as the Board of Tourist Industry which sults of which indicated that there were project. by that time had doubled its staff. only a very few hotels capable of accom- However, a breakthrough was made, The revised guidebook covered all terri- modating foreign tourists and a marked when the City of Osaka obtained a long- tories then under Japanese rule, except the shortage of resort hotels suitable for at- term, low-interest loan from the Finance South Seas (Micronesia). Korea, which tracting them. Nevertheless, no action Ministry to build a tourist hotel, and lease was not included in the earlier An Offi- was taken to improve the situation be- it to a private enterprise for management. cial Guide to Japan, was also covered. By cause it was determined to be commer- In January 1935, the Board of Tourist In- this time, however, there was no longer any intention to include Japan’s puppet state of Manchuria, China, and the South Seas in this revised guidebook.

Development of Tourist Hotels

As previously described, the Hamaguchi Cabinet took the initiative in attracting foreign tourists as a vital source of hard currency. However, due to serious budgetary constraints, the government could not carry out the initial recommendations made by the International Payment Improvement Council. Consequently, the government had to join forces with the private sector to form the Japan Tourist Association, a semi- government organization to execute the work. Kamikochi Imperial Hotel in Nagano Prefecture (Japan Hotel Guide, 1959)

26 Japan Railway & Transport Review • March 1998 Copyright © 1998 EJRCF. All rights reserved. dustry began arranging financing using state funds for construction of hotels by local governments for leasing, successfully completing 14 new hotels throughout the country. This was an unprecedented ac- complishment. The vicious inflation following the end of WWII made it easy to pay back these long-term, low-interest loans. After the war, these hotels were eventually sold to private enterprises. The long-standing resort hotels still oper- ating today at Gamagori in Aichi Prefec- ture, Kamikochi in Nagano Prefecture, and Lake Biwa in Shiga Prefecture were started by railway operators before WWII, but they can no longer serve their original purpose and are in the red, because most foreign tourists are absorbed in met- ropolitan areas and theme parks. Lake Biwa Hotel in Shiga Prefecture (Japan Hotel Guide, 1959)

Postwar Development In today’s age of travel, it seems only a every JR station. The JRs now run travel matter of time until the number of Japa- agencies as part of their business diversi- After WWII, railway operators again made nese travelling overseas reaches 20 mil- fication. This may be necessary to make efforts to promote Japan’s tourism; new lion a year, which will in due course offset more profits, but is overseas travel the train coaches were built or modified es- most of the current trade surplus. business of domestic railway operators? pecially for foreign visitors. Industry was A tourism deficit will not be such a bur- Instead of adversely affecting the country’s in ruins, agricultural output was down, den if Japan’s trade surplus continues to balance of payments in international tour- and people were hungry, but the attrac- grow but the manufacturing sector is suf- ism, perhaps the JRs should make more tive mountains and rivers remained as fering severe competition from newly-in- effort to attract foreign tourists to Japan. they had always been. The countryside dustrializing economies. Furthermore, the I and surviving historic Shinto shrines and so-called hollowing out of Japanese in- Buddhist temples were a precious tour- dustry by overseas transfer of manufac- ism resource for earning the foreign cur- turing facilities is creating worries and rency needed to rebuild the country. The insecurity about unemployment. There prewar experience of the railway opera- is no guarantee that the manufacturing tors in preparing English guidebooks and sector can continue generating the huge travel literature as well as constructing and trade surplus. managing resort hotels proved useful in Today, many leaflets advertizing JR-orga- reviving tourism. nized overseas trips can be found at However, the Korean War (1950–53) hit efforts to promote international tourism, Koichi Nakagawa but the resultant military procurement boom made the rapidly-recovering manu- Professor Koichi Nakagawa is Professor of Economics at Ryutsu-Keizai University in Ibaraki Prefec- facturing industries leading foreign-cur- ture, Japan. He specializes in the geography of communications and tourism, and published Cultural History of Subways (in Japanese) in 1984, and Cultural History of Tourism (in Japanese). rency earners. Nevertheless, the tourism industry was still a major source of foreign currency because overseas travel re- strictions for Japanese had not been lifted.