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The Business Environment in Okinawa Prefecture

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The Business Environment in Okinawa Prefecture TheThe BusinessBusiness EnvironmentEnvironment inin OkinawaOkinawa PrefecturePrefecture 3 OkinawaOkinawa’’ss LocationLocation “Asian Gateway,” with major Asian cities within range of 4 hours Sapporo North Korea (DPRK) Aomori Pyongyang Sea of Japan Seoul South Korea Tokyo Osaka Japan Dalian BeijngSeoul Shanghai Tianjin Qingdao Haneda Narita Shanghai Kansai East China Sea Okinawa Islands Naha Daito Islands Miyako Islands Xiamen Taipei Guangzhou Yaeyama Islands Pacific Okinawa Taipei Taiwan Ocean Hanoi Hong Kong Manila 4 hour range from Okinawa Bangkok Ho Chi Minh City Philippines Manila Kuala Lumpur Singapore Malaysia Source: Okinawa Prefecture 4 Population in 1972 when Okinawa was returned to Japanese administration 970,000 → 1,400,000 in 2011 (+430,000) Working-age population (15-64): Okinawa Prefecture 65.1% (National average: 63.6%) (in thousands) Population Trends in Okinawa Prefecture 1,600 1,401,000 65 and over (FY2011) 15 – 64 yrs 1,400 0 – 14 yrs 1,200 970,000 (FY1972) 1,000 800 600 400 200 0 1972 74 76 78 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 08 2010 (year) Source: Bureau of Statistics, Ministry of Internal Affairs and Communications Note: Data for each year as of October 1 5 Okinawa is the only prefecture in Japan expected to experience an increase in its population through to 2025 (％) Estimates of population changes (2005-2030) 3.0 2.6 2.4 1.9 2.0 1.5 1.5 1.0 0.8 0.4 (0.3) (0.5) (0.5) (0.5) Fukuoka Saitama JapanAll Tokyo Okinawa Hyogo Tochigi - Chiba Shiga (0.2) Kanagawa Aichi (1.0) (1.1) (1.4) (2.0) (1.8) (1.7) (3.0) (2.9) (3.1) (3.3) (3.4) (3.4) (3.6) (4.0) Ratio of population changes Ratio of population changes Ratio of population changes Ratio of population changes Ratio of population changes (2005-2010) (2010-2015) (2015-2020) (2020-2025) (2025-2030) Source: Population Estimates by Prefecture (May 2007), National Institute of Population and Social Security Research 6 Forecast to increase through to 2025 Firm growth in mortgage loans (％) Ratio of changes in the number of households (2005-2025) 7.0 6.1 6.0 5.7 5.0 4.6 4.0 3.4 3.4 3.3 3.3 3.1 3.0 2.2 2.2 2.2 2.0 1.0 - Tokyo Shiga Saitama Okinawa Yamanashi Tochigi Ibaraki All JapanAll Chiba Kanagawa Mie (1.0) (2.0) Ratio of population changes Ratio of population changes Ratio of population changes Ratio of population changes (2005-2010) (2010-2015) (2015-2020) (2020-2025) Source: Household Projections by Prefecture in Japan (August 2005), National Institute of Population and Social Security Research 7 Despite a decrease of 177,000 attributable to the impact of the earthquake disaster, increase of 18,000 in the number of overseas visitors Number of visitors 5,520,000 and Tourism revenue ¥378.2 billion → Targets: 10,000,000 and ¥995.7 billion, respectively (persons) Number of visitors and tourism revenues (¥ million) 7,000,000 500,000 Air fares deregulated; Okinawa Summit 9.11 travel package prices slashed (2000) terrorist attacks 450,000 6,000,000 Competition with overseas 400,000 destinations due to strong yen 5,000,000 350,000 Economic bubble bursts 300,000 4,000,000 250,000 Okinawa Ocean 3,000,000 Expo ‘75 200,000 2,000,000 150,000 100,000 1,000,000 Number of visitors in FY1972 Number of visitors in FY2011 560,000 5,520,000 50,000 0 0 1972 74 76 78 1980 82 84 86 88 1990 92 94 96 98 2000 02 04 06 08 10 (fiscal year) Japanese visitors (left axis) Overseas visitors (left axis) Tourism revenues (right axis) Source: Tourism Handbook, Okinawa Prefecture 8 ・After the return of Okinawa to Japanese administration in 1972, 10-year promotion plans continuously put in place and implemented; Current plan represents the fifth plan in succession. ・Principal responsibility for the putting in place each plan transferred to the prefecture; In addition to placing greater emphasis on the independence of the prefecture, steps taken to upgrade and expand national government support measures focusing mainly on fiscal and taxation system assistance including the payment of lump-sum subsidies. ・10-year period from 2012 to 2021. ● Promoting tourism ● Building an international logistics base ・Implement initiatives aimed at bringing forward the expansion/extension of runways at Naha Airport Promote the development of health, medical and the construction of an international passenger treatment and other tourism as a part of efforts to terminal ・ add new value to existing aspects of tourism in Take steps to attract peripheral airport and seaport industries Okinawa ・Promote overseas development by businesses within the prefecture with this logistics base as a central hub ● Increased sophistication and ● Balanced development diversity in the information and telecommunications industry ● Infrastructure development ● Employment promotion ● Culture promotion ● Okinawa Development Council Source: Collated by the Bank based on materials from Japan’s Cabinet Office and Okinawa Prefecture 9 Number of persons employed and Population the unemployment rate 【Growth acceleration case】＜2021＞ ○1,440,000 (2021) (average annual increase of 0.3%) ○Number of persons employed: 690,000 (average annual increase of 0.9%) ○Okinawa is the only prefecture in Japan forecast to ○Unemployment rate: experience continuous population growth through to 4.0% (average annual decrease of 0.3 of a percentage point) around 2025 (1,443,000) 【Standard trend case】＜2021＞ ○Number of persons employed: Note: Based on estimates (May 2007) by the National 676,000 (average annual increase of 0.8%) Institute of Population and Social Security Research ○Unemployment rate: 6.1% (average annual decrease of 0.1 of a percentage point) (in thousands) (%) (in thousands) 800 9.0 1,500 1,440 8.4 8.0 1,393 7.6 1,400 700 690 Number of persons 676 1,327 employed 7.0 Unemployment rate 622 1,300 6.1 600 577 6.0 1,229 549 5.4 1,200 5.0 1,118 500 1,100 439 4.0 4.0 4.0 3.0 400 3.0 1,000 364 960 2.0 900 300 1.0 800 200 0.0 1972 1981 1991 2001 2010 2021 1972 1981 1991 2001 20102021 2021 Standard Growth trend acceleration Source: Okinawa Prefecture 10 Prefecture GDP ・ Prefecture per capita Number of visitors ・ disposable income tourism revenue 【Growth acceleration case】＜2021＞ 【Growth acceleration case】＜ 2021 ＞ ○Prefecture GDP: ○Number of visitors: ¥5,143.9 billion (average annual increase of 3.0%) 10,000,000 (average annual increase of 5.2%) ○Tourism revenue: ○Prefecture per capita disposable income: ¥2,710,000 ¥995.7 billion (average annual increase of 8.6%) 【Standard trend case】＜ 2021 ＞ 【Standard trend case】＜ 2021 ＞ ○Prefecture GDP: ○Number of visitors: ¥4,727.7 billion (average annual increase of 2.2%) 8,170,000 (average annual increase of 3.3%) ○Prefecture per capita disposable income: ¥2,490,000 ○Tourism revenue: ¥694.5 billion (average annual increase of 5.1%) (¥ billion) (¥ million) (in thousands) (¥ billion) 7,000 3.0 12,000 1,200 2.71 2.49 6,000 10,000 Prefecture GDP （left axis) 2.5 10,000 995.7 1,000 Prefecture per capita Number of visitors to Okinawa (left axis) disposable income (right axis) 5,143.9 Tourism revenue (right axis) 5,000 4,727.7 8,170 1.97 2.11 2.07 2.0 8,000 800 694.5 4,000 3,727.8 3,583.6 5,718 1.5 6,000 600 1.29 3,014.8 3,000 4,433 1.0 4,000 400 403.3 2,000 3,015 339.0 1,616.0 275.3 0.44 1,930 0.5 2,000 200 1,000 163.5 459.2 444 32.4 0 0 0 0 1972 1981 1991 2001 20102021 2021 1972 1981 1991 2001 20102021 2021 Standard Growth Standard Growth trend acceleration trend acceleration Source: Okinawa Prefecture 11 Subsidy Business of Economy, Trade and Industry Department, Okinawa General Bureau (Fiscal 2011) Purpose This business was first identified by the Okinawa Wellness Industry Research Committee to help create an Okinawa wellness industry through international medical exchange unique to Okinawa in fiscal 2010, and was established for the purpose of building a new growth industry in Okinawa Prefecture. Through this business, steps are being taken by related companies within the prefecture to build a network that is capable of promoting future independent international medical exchange. Initiatives of the business Verification business Details Implement medical spa Introduce a Russian couple as monitors; business monitoring implement a medical consultation monitoring tour over four nights and five days (November 6-10, 2011) Implement rehabilitation Introduce patients from such countries as China business monitoring for a long-term period of around one month; implement a Japanese rehabilitation program (February 21, 2012 to March 16, 2012) 12 Okinawa Wellness Industry Research Committee Report － “Bankoku-Iryo-Shinryo” and Okinawa Regional Economic Development － Part 1 Part 2 Part 3 “Bankoku-Iryo-Shinryo” Medical lifestyle industry aimed at Building a platform to support the (International Medical Exchange) maintaining health and longevity Okinawa wellness industry in Okinawa in Okinawa Fiscal 2011 Fiscal 2012 Regional New Growth Industry Group Creation Business, Implementation Business Okinawa General Bureau Bank of Okinawa Group: Okigin Economic Research Institute Co.,Ltd. Bank of Okinawa Group: Okigin Economic Research Institute Co., Ltd. Fiscal 2011 Implement a “Bankoku-Iryo-Shinryo” (1) Create a medical lifestyle industry by building a network between business (International Medical Exchange) operators within the prefecture and utilizing IT creation business (2) Conduct events including international conferences and exhibitions 13 Second Round of Bank of Okinawa Churashima Business Meetings Bring courage to Japan! Also support Asia! Okinawan foods makes the bridge to the world.
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