Ms. Sabine Kampmeier, PM&Partners

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Ms. Sabine Kampmeier, PM&Partners Japanese Tourism Industry Market Entry Opportunities for Swiss Companies Sabine Kampmeier/ PM&P Bern December 3rd, 2015 Photo: JNTO 2 Japan’s Comeback . Attracting foreign companies . Attracting foreign visitors Japan . Becoming a tourism nation is back Ease visa regulations Improve immigration procedures Expansion of LCC Improve infrastructure 3 Becoming a Tourism Nation Domestic 30 trillion Yen in 2020 (+36%) Inbound Outbound 20 mill. travellers in 2020 20 mill. visitors in 2020 Source: JETRO Image Source: Wikipedia 4 Some Information About PM&P . Consulting company specialized in international expansion and strategic FDI . 3 offices: Frankfurt, Munich, Berlin . Team of industry experts of different sectors . Current investment promotion initiative with JETRO 5 Japanese Outbound Tourism mainly to Asia . 8th “top spenders business & leisure trips” . 3rd biggest business travel market outside Europe . 17% of population travels abroad Source: JETRO & JNTO 6 Japanese Outbound Tourism Offline/Online Market Players Foreign Market Entry Expedia (USA) 2006 Booking (NL) 2009 Shanghai Spring International Travel (China) 2012 CTRIP (China) 2014 Airbnb (USA) 2014 Agoda (NL) 2015 Source: JETRO, based on Japan Tourism Agency estimations, 2013 7 Japanese Outbound Tourism Opportunities for Swiss Companies . Hotels . DMCs . Tour operator . Activities . Attractions . Shopping tourism Opportunities . OTAs . Business travel Image source: Süddeutsche Zeitung 8 Market Entry: HRS – Hotel Reservation Service Company: Hotel Reservation Service GmbH, Germany About: Worldwide hotel reservation system for business and private travellers. Database > 250.000 hotels in 190 countries. Business travel platform delivers BT solutions & travel expense management. Year: 5/2014 Project: Subsidiary Tokyo and launch of web portal. Links: www.hrs.com 9 Japanese Inbound Tourism with Strong Growth 2015: as per Oct. 31st: 16,31 million tourists The aim of 2020, 20 million tourists, is within reach in 2015! 2015 Source: JNTO 2015 10 Japanese Inbound Tourism Mainly from Asia . 77% of all guests come from Asia . Only 5 % come from Europe Source: Wikipedia 11 Japanese Inbound Tourism Growth Areas OTAs Tour Accomodation Operator Inbound Shopping Tourism Transport Tourism Growth Areas Leisure MICE Cruises 12 Transport . 5% of global air traffic . 10% of global airline industry’s revenues . Haneda: 5th biggest airport of the world . Airport privatization under way . Infrastructure: terminal buildings . LCC market entries (Asia) Image source: JNTO 13 Opportunities in the Transport Sector Low Cost MRO Carrier Opportunities Airport Airport Technology & Shopping Equipment Conveyor Catering Technology Security Passenger & Air Traffic Systems Control Systems Image source: JNTO 14 Tour Operator Offering Japan as Destination Opportunities . 5% of visitors are from Europe . Recent news from European operators TUI: several tours Hauser: Skiing in Japan Etc. 15 Japanese Inbound Tourism “What do you plan to do in Japan?” “Eat Sushi” Ryokan Japanese Hospitality 16 Japanese Food and Shopping Are Important “What do you plan to do in Japan?” Eat Japanese food 69% Go shopping 53% Sightseeing 37% Walking in shopping districts 36% “Eat sushi” Bath in a hot spring 33% Drink Japanese alcohol 21% Ryokan Japanese Hospitality Stay in a Japanese style inn 19% “Go shopping” Source: Consumer Trend Survey, Japan Tourism Agency 17 Shopping Tourism as a Driver . Shopping surpassed accommodation in travel expenditure . Travel expenditure +43% (Chinese +133%) . Duty-free shops doubled in one year to 9.361 . Luxury brands re-enter market > Opportunities for Swiss luxury brands Source: JETRO NEWSLETTER, based upon consumption Trend survey for foreigners visiting Japan 18 Leisure Industry Is Huge Amusement Parks Leisure Market . The Wizzarding World of Harry Potter 2014 64,7 trillion YEN . Legoland 2017 539 billion CHF Restaurants . Heinz Beck 2014 . Blue Bottle Café 2015 . Carl’ s Jr. 2015 . Guzman y Gomez 2015 . Shake Shack 2016 Shopping . Luxury brands . Sports equipment, esp. running Image source: Tokyodisneyresort.jp 19 Japanese Inbound Tourism Onsen The Soul of Japanese Wellness Ishizuchiyama Onsen Source: JNTO 20 Most Accomodation Units Are Ryokan 65% of units Ryokan Japanese Hospitality 14% of rooms Matsue Shinji-ko Onsen Source: JNTO 21 Only a Small Proportion of Full Service Hotels 3% of units Full Service Hotels 18% of rooms Nikko Hotel Tokyo Source: JNTO 22 Most Rooms Are in Limited Service Hotels Limited Service Hotels: 18% of units - 56% of rooms A special kind of Limited Service Hotel Source: Die Welt 23 Hotel Occupation Rates High and Going Up 100% . Occupation rates Full Service Hotels 75.7% 80% 75.7% 71.1% 72.5% 69.5% certain cities: 68.3% 67.1% 67.2% 67.3% 59.4% 62.3% 59.3% > 85% 60% 52.9% 53.3% 52.6% 52.3% 49.4% 48.0% 46.8% 41.2% . ADR 40% 34.7% 35.5% 33.1% 41.6% 33.7% 32.3% 31.6% 30.6% . REVPAR 20% 2008 2009 2010 2011 2012 2013 Ryokan Resort Limited Service Full Service Others . Request for international brands Source: JETRO & JNTO 24 Accomodation Tokyo: 4th most attractive real estate market of the world 2015: 78 new hotels - 13.000 rooms 25 Accomodation (back up) Market Entry by Foreign Hotel Companies Number Hotel Name Open Operation Owner Owner's profile Operator Note of room Shangri-La Opened on selected floors of Shangri-La Hotel, Tokyo 2009 200 Leasing Mori Trust Developer International Hotel redeveloped office building Management Opened on selected floors of The St. Regis Osaka 2010 160 Leasing Sekisui House Corporate St. Regis redeveloped office building NTT,ORIX Opened on selected floors of InterContinental Osaka 2013 272 MC Developer IHG Japan Osaka Others redeveloped office building Mori Trust Hotels & Tokyo Marriott Hotel 2013 249 MC Mori Trust Developer Rebranded in 2013 Resorts Osaka Marriott Miyako Kintetsu Hotel Opened on selected floors of 2014 360 FC Kintetsu Railway company Hotel Systems redeveloped office building The Ritz-Carlton Scrap and build new hotel The Ritz-Carlton, Kyoto 2014 134 Leasing Sekisui House Corporate Hotel Company property Opened on selected floors of Andaz Tokyo 2014 164 MC Mori Hospitality Developer Mori Hospitality redeveloped office building Berjaya Group Four Seasons Hotel Kyoto 2014 186 Leasing Global investor The Four Seasons New hotel property (Malaysia) Aman resorts Opened on selected floors of Aman Tokyo 2014 約80 Leasing Tokyo Tatemono Developer International redeveloped office building Source: JETRO & JNTO 26 Opportunities in the Accomodation Sector Hotel Equipment Opportunities Seismic Hoteliers school Retrofitting Ecologic Technology Hotel 2015: 78 new hotels 13.000 rooms Software (PMS, IBE, Channelmanager) 27 Revolution in Hospitality? – Henn-na Hotel Source: OE24.at Source: easyvoyage.de Source: web.de 28 Japanese Hospitality Source: www.wattention.com 29 MICE Major Events . 2020 Olympic Games & Paralympics . 2019 IRB Rugby World Cup . 2017 Asian Winter Games . Tokyo: Builds 4 big sports clusters . Host international sports competitions . Increase conferences by 50%, become top hosting nation in Asia (2012: 731) Image: © Getty Images 30 Revolution in Hospitality? Source: OE24.at 31 Opportunities in MICE Ticketing Platforms & Systems Example: Ticketbis SL/Spain Opportunities Conference Equipment management software & systems Building Language & Translation Visitor access systems Security Systems Image: © Getty Images 32 Cruises . Annual growth rate in port calls 31% (2013 + 2014) . Carnival Cruise Lines opened office in Japan . International cruise companies to allocate vessels in Southeast Asia with calls in Japan . Domestic cruise market #1 in Asia, #11 worldwide Source: Asia Cruise Trends 2014 33 Overall Trends in Travel & Tourism Source: teiet.org Source: sustainablebrands.com • Carsharing: Toyota • Couchsurfing • Uber? • Carsharing Overall • Uber? Trends Long Tail Source: zacjohnson.com • Airbnb Source: mazeberry.com • specialized OTAs/TOs 34 Conclusion: Market Entry Opportunities OTA DMC TO Hotel Hotel Outbound Inbound Activities MICE Attractions Supplier (Luxury) Consumer Brands Image source: sayfc.org 35 Thank You Thank you for your attention Sabine Kampmeier PM & Partner (Senior Consultant) Email: [email protected] Phone: +49 541 38594545 Cell: +49 176 78335846 Image source: www.wattention.com .
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