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A Survey of Travel Trends for Golden Week 2010 (Apr. 24 ~ May 4)

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A Survey of Travel Trends for Golden Week 2010 (Apr. 24 ~ May 4) For Immediate Release April 12, 2010 (Translation of Japanese Release No.40) A Survey of Travel Trends for Golden Week 2010 (Apr. 24 ~ May 4) -- Taking Apr. 30 Off Creates a 7-Day Break, Encouraging Longer Trips! -- Special ETC Expressway discounts will ensure that more trips are made by car. -- Overseas Travelers to Top 500,000 for First Time in Three Years (up 4.3% to 508,000). -- The most popular remote destinations are Europe & Hawaii; closer ones are Guam & China. -- In Japan, Popular TV Series Make Kochi, Matsuyama and Nagasaki Popular -- th The 1,300 anniversary celebrations of the Nara Heijo-kyo Capital to boost Kansai tourism. Survey Period April May 24th 25th 26th 27th 28th 29th 30th 1st 2nd 3rd 4th 5th 6th 7th 8th 9th Sat Sun Mon Tue Thu NH Fri Sat Sun NH NH NH Thu Fri Sat Sun JTB has published estimates of travel trends during the eleven days of Golden Week (from April 24 through May 4 on a departure basis) for those intending to spend at least one night away from home. The survey was based on a questionnaire with 1,200 respondents, the situation for sales by JTB group companies and airline bookings, and estimates of travel industry trends. It is the 42nd such survey since the first, in 1969. The findings are as follows: Notes: 1. In the above table, NH indicates a national holiday, pink and blue indicate days off (including Saturday for those who work a five-day week). 2. In the following table, numbers of travelers are cumulative totals and numbers in parentheses indicate changes from the previous year and/or percentage point changes. Average expenditures are per person per journey and for domestic travel include all spending on travel, accommodation, souvenirs and meals. Average expenditures on overseas travel do not include expenses for souvenirs, etc., incurred at the destinations (but do include fuel surcharges). Yen amounts are translated, for information purposes only, at a nominal rate of 93 JPY per USD. Table 1: Numbers of Travelers, Average & Total Expenditures in Golden Week 2010. 2010 2009 Increase or Projected Change Estimated Announced Decrease No. of travelers 22,008,000 +1.0% +222,000 21,786,000 21,900,000 Domestic 21,500,000 +0.9% +201,000 21,299,000 21,400,000 Overseas 508,000 +4.3% +21,000 487,000 500,000 Average Domestic ¥38,000 +¥1,100 ¥36,900 ¥36,900 +3.0% Expenditures ($409) ($12) ($397) ($397) Average Overseas ¥223,100 +¥10,000 ¥213,100 ¥216,800 +4.7% Expenditures ($2,399) ($108) ($2,291) ($2,331) ¥930.3 billion +¥40.6 billion ¥889.7 billion ¥898.1 billion Total Expenditures +4.6% ($10.003 billion) ($437 million) ($9.567 billion) ($9.657 billion) ¥817.0 billion +¥31.1 billion ¥785.9 billion ¥789.7 billion Domestic +4.0% ($8.785 billion) ($334 million) ($8.451 billion) ($8.491 billion ¥113.3 billion ¥9.5 billion ¥103.8 billion ¥108.4 billion Overseas +9.2% ($1.218 billion) ($102 million) ($1.116 billion) ($1.166 billion) Main Characteristics of Travel in Golden Week 2010 1. The Holiday Sequence Makes it Easier to Take Longer Breaks: ETC Expressway Discounts Will Apply for Seven Straight Days. The Golden Week holiday sequence runs from Saturday May 1 through the national holiday on May 5, but by taking Friday April 30 off a seven-day continuous break is possible, making it easier to take longer breaks, and there are many who will want to use this opportunity to visit more remote destinations. Electronic toll collection (ETC) on Japan’s expressways will also be discounted over the full seven days, including April 30, and this is expected to encourage many more to travel by car. The questionnaire revealed that many are planning to visit more remote destinations, including Hokkaido, Shikoku and Okinawa. 2. More Respondents Feel Positive About Travel; Higher Travel Expenditures Expected this Year. The Bank of Japan's quarterly short-term economic survey published on April 1 reports an improvement in business confidence. This should feed through to more relaxed household budgets and higher personal consumption. When respondents were asked their attitude to future travel expenditures, those wanting to increase them were 3.0 percentage points more numerous than last year, while those wanting to decrease expenditures were 6.4 points fewer. The prospects are for not only more travelers but also higher expenditures. Table 2 (reference): Changes in Desire to Spend on Travel (excerpted from Table 10). March 2010 March 2009 March 2008 Want to spend more 16.9 (+3.0) 13.3 (-3.0) 16.3 (+1.0) Want to spend about the same 52.9 (+2.4) 50.5 (-5.7) 56.2 (-1.0) Want to spend less 28.0 (-6.4) 34.4 (+10.6) 23.8 (-1.0) Note: Numbers are percentages or (in parentheses) percentage point changes from previous year. 3. Peak Overseas Departures are on the 29th, 1st and 2nd: Domestic on the 1st thro’ 3rd. Bookings for LOOK JTB overseas package tours reveal a double peak of departures; those for more remote destinations in Europe, North America and Hawaii cluster on April 29, a national holiday, while those to closer destinations in Asia and Guam/Saipan are on the weekend of May 1 and 2. There are also many departing for Europe and Hawaii on May 5, a national holiday, and Thursday May 6. It seems that many cost-conscious consumers are delaying their departures to take advantage of off-peak rates. Domestic departures, on the other hand, show stays concentrating on May 1, 2 and 3. The expressway toll discounts run from the first national holiday on April 29 through the last on May 5. This suggests that departures will be dispersed over a wider peak than usual. 4. The Favorable Holiday Sequence and Consistently High Yen Exchange Rates Should Take Overseas Travelers Past the 500,000 Level for the First Time in Three Years. The favorable sequence of holidays promises to take the total number of overseas travelers to 508,000 (4.3% more than the previous year), the first time in three years to exceed the 500,000 level last reached in 2007. The yen is also maintaining consistently high exchange rates, so the increase in fuel surcharges from April should not have too serious an effect. The favorable sequence is also encouraging domestic travel, with numbers expected to reach 21.5 million (up 0.9%). Table 3 (reference): Changes in Exchange Rates (Tokyo foreign currency exchange/TTS, source: Bank of Tokyo Mitsubishi UFJ) Against the JPY GBP AUD KRW USD EUR (Japanese Yen) (Pound Sterling) (Australian Dollar) (Korean Won) Mar. 30, 2010 93.17 125.69 142.06 86.50 8.36 Mar. 31, 2009 99.23 131.34 144.45 69.01 7.23 Mar 31, 2008 101.19 159.69 204.11 93.74 10.31 Table 4 (reference): JAL Fuel Surcharges dep. Japan (round trips) in JPY 2010 2009 Increase from Apr. Jan. Oct. July Apr. previous GW Korea 1,000 600 600 0 400 600 Guam 6,000 4,000 4,000 0 2,000 4,000 Thailand, Malaysia 9,000 6,000 6,000 0 3,000 6,000 Singapore Hawaii 12,000 8,000 8,000 0 4,000 8,000 Oceania, N. America 21,000 14,000 14,000 0 7,000 14,000 Europe Overseas Travel The Favorable Holiday Sequence Makes Europe and Hawaii Popular: Nearer Home, it is Guam and Destinations in Asia. This year, the Golden Week holiday sequence makes it easier to take longer breaks and this, with consistently high yen exchange rates, has made Europe and Hawaii popular. Poland is bubbling over with the celebrations of the 200th anniversary of Chopin’s birth, while Germany celebrates the 20th anniversary of the unification of East and West Germany and the 60th anniversary of the “Romantic Road.” More travelers than last year also appear to be heading for Australia. Closer at hand, Guam, China and Asia in general should also see more travelers (see Table 5). The Shanghai International Exposition (from May 1) Promises a Major Increase in Travel to China. Airline bookings are strong for Shanghai, Beijing and Dairen and the opening of the Shanghai Expo on May 1, in particular, is expected to encourage many Japanese visitors. Three Airlines, Including Emirates, Start Services via Narita, and the Middle East Attracts Attention as a New Destination. On March 28, Emirates initiated a service of five flights a week from Narita to Dubai while Etihad Airways initiated a similar service to Abu Dhabi. As of April 26 they are joined by Qatar Airways, which will provide seven flights a week to Doha. Their fleets of aircraft and reputations for service are generating interest in new travel destinations. Travel companies have arranged not only package tours with stays in the area but also trips to Europe via the Middle East and tours to Africa, so the Middle East is attracting considerable interest this Golden Week. Domestic Travel ETC Expressway Discounts for Seven Straight Days Boost Stays and Travel by Car. This year, the discounts on ETC charges for expressways are to run throughout the seven days from April 29 through May 5. It is now a year or more since these discounts were introduced, and magazines have been running articles on how to take best advantage of them. This seems sure to encourage not just day trips and journeys to the ancestral home but also more trips by car for overnight stays. More Tourists will Visit Kansai to Celebrate the 1,300th Anniversary of Japan’s Ancient Capital, Nara Heijo-kyo.
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