Japan Travel Trade Weekly News
Keeping you abreast of what's going on in the
Japanese travel and tourism industries.
News consolidated by Travel Vision, Inc. updated every week.
Mr. Sasaki Calls, "Let's Pick up Steam," at Startup of VWC; Tokyo to
Initiate Creating Atmosphere, Regional Markets to Follow with Results
Mid-April 2008
Japan Association of Travel Agents (JATA) has officially started
the Visit World Campaign (VWC) under the leadership of Takashi
Sasaki, chairman of Special Committee for Promoting VWC 20 Million.
Mr. Sasaki, who is also president of JTB Corp. and chairman of
Overseas Travel Committee at JATA, says, "Overseas travel market is
waning after it hit a record of 17.8 million travelers in 2000. Every
one of us in the trade has to gather steam toward the government's
goal of attaining 20 million travelers in 2010," and he calls, "Let's
take heart and work together for the common purpose of sending more
people overseas over the next three years, overcoming small frictions
that might arise among ourselves."
Yoshiaki Honpo, deputy vice minister for Tourism Policy at the
Ministry of Land, Infrastructure, Transport and Tourism (MLIT),
attended the press meeting with Mr. Sasaki and commented, "Overseas
travel had once been on course to growth without any specific
efforts, but it was not so in the last decade." He explained the
significance of this campaign, saying, "Contrary to Korea and China,
young people in Japan are not so enthusiastic about going abroad
these days. Lack of extensive experience on the part of Japanese
youth may eventually erode our competitive edge in the international
arena and tarnish national strength and cultural maturity in the long
run."
He did not forget to mention, however, that since the promotion
of overseas travel is basically a matter of a private sector, the
mutual cooperation of stake holders at different levels is essential,
and that government is only in a position to back them up one way or
another.
In the meantime, Hiroshi Sawabe, leader of 20 Million Promotion
Office, said at the same interview, "We will pursue our goal by
closely working with various organizations, but what weighs most is
how well travel agencies can comprehend the ever-changing consumers'
attitude toward travel and offer products well tailored to the
market.
Mr. Sasaki sets numeric targets of outgoing travelers by year: 18
million for 2008, 19 million for 2009, and 20 million for 2010.
When he refers to "gathering steam" or "creating atmosphere," he
has it in mind to select several goodwill ambassadors of travel from
the general public and appoint them to each destination by way of
representing their generations. They are invited to travel to the
assigned destination and make appearances in the publicity to
contribute to the promotion.
He also plans to "train-jack" carriages of private railway
companies run in the Tokyo metropolitan area as promotional
activities for the first half of the fiscal year 2008.
* Editor's Opinion: Vitalization of Regional Markets Is Key to
Success
Mr. Sasaki emphasizes "picking up steam" or "mood-making" is
essential, in addition to numeric targets, for attaining the goal of
20 million Japanese outbound travelers in 2010. He reconfirmed and
stressed this point at the press meeting held on April 4, and
attendants at the ensuing reception appeared to share the same notion.
It is earnestly hoped that the goal is accomplished without fail.
In consideration of the time limit of 2010, a key to the success in
boosting the number of travelers would rest, in the editor's
conception, with the stimulation of regional markets rather than
Tokyo metropolitan district, while Tokyo market should go a long way
to create the traveling mood. The editor would like to propose such
functional decomposition between Tokyo and regional markets.
Denotation and collection of fuel surcharge, as well as the task
of motivating young people to travel abroad, are now the big
challenges for the travel agencies. Outbound travelers departing from
Tokyo's Haneda or Narita airports are not expected to increase
substantially because of slot constraint at both airports and
downsizing of aircrafts. Explosive growth is likely only after 2010.
Travel agencies are required over the next few years to exert
themselves to lead consumers in the desired direction and to devise a
new method for merchandising and distributing attractive travel
products.
In view of boosting the number of outbound travelers, regional
markets including Kansai and Chubu but excluding Tokyo are most
promising in producing an effect in a limited period. Mr. Sasaki, at
the press meeting of April 4, reiterated his assertion that the
proportion of passport holders is still low in the regional markets.
He also says that people residing in the countryside should be
afforded the same facilities for going abroad as the people living in
Tokyo, Osaka, and Nagoya. In fact, VWC is said to include in its
activities a campaign to acquire passports. Undoubtedly such
primitive approach would be indispensable.
The same domestic/ international connection system implemented at
Chubu and Kansai International Airports should be extended to
regional airports so as to facilitate taking international flights at
these regional airports to Incheon, Shanghai, Hong Kong, and Guam.
Once people take a Guam flight, it will possibly bring them far down
to Cairns, not to mention nearby Saipan. Likewise, Incheon, Shanghai,
and Hong Kong are the gateways to every destination in the world.
The editor would like to propose airlines to disclose passenger
load factor of their flights leaving these regional airports. Such
data will serve as an evidence to support their repeated assertion
that occasional charter flights are threatening their regular
operation, which in turn will make people reconsider using the
regular flights much more. We do not want to see another instance of
Singapore Airlines at regional airport that made a retreat earlier
from the Kansai route.
The success of 20 million projects, to be incubated in feverish
atmosphere, depends largely upon the performance of travel agencies
as well as the reaction of consumers and, for that matter, regional
markets are considered to play an important role. (Opinion: by J.
Suzuki, Editorial Chief, Travel Vision, Inc)
JTB's Forecast for Spring Holiday Season: Overseas Travelers Decline
14.6%, Travel Consumption Falls by 18.2 Billion Yen As Unfavorable
Holiday Calendar Shortens Trips
Mid-April 2008
People who make a domestic trip during the spring holiday season
(11 days from April 25 to May 5) are assumed to total 21,144,000,
down by 43,000 from last year, and those who travel abroad to number
458,000, down by 78,000, making the total travelers 21,902,000, a
decrease of 121,000, according to a research made by JTB Corp.
This year, unfavorable calendar dates make the holiday string
shorter, causing red-letter days alignment identical with 1997 and
2003 when travel movements were slow. In 2003, domestic travelers
fell 2.5 percent, while overseas travelers declined as much as 52.2
percent due to the SARS outbreak and under the influence of the Iraqi
war. In 1997, domestic travelers decreased 1.9 percent and overseas
travelers dropped 14.8 percent. JTB forecasts this year will follow
in the steps of these unlucky years.
Total travel consumption during the period is estimated to
decline by 17.7 billion yen to 957.3 billion yen, of which 840.6
billion yen will be for domestic travel, up by 0.5 billion yen, and
116.7 billion yen for overseas travel, down by 18.2 billion yen
because of decreased number of travelers.
Average travel expenses for domestic travel are up 100 yen to
39,200 yen and up 3,000 yen for overseas travel to 254,700 yen. As
far as outbound travel is concerned, travel expenses in real terms
lessen because proportion of medium- and long-haul trips is smaller
than last year when Europe and Hawaii boomed with longer holiday;
despite the fact, eventual average travel expenses are assumed to
rise because they include the oil surcharge hiked nearly 50 percent
from last year pushing up the air cost by 800 yen to 8,000 yen.
JATA's Market Survey: Overseas Travel Market Deteriorates Rapidly
with China Tour Slump, Economy's Downturn, Oil Surcharge Hike
Mid-April 2008
Japan Association of Travel Agents (JATA) conducted, from the
middle of February to early March, a travel market survey which
revealed a reading of negative 33 points in business confidence in
overseas travel for January- March period, down 20 points from the
last survey. The index zero signifies status quo, while 100 points
show a good prospect from all firms surveyed and minus 100 points
indicate a sentiment of unanimous deterioration.
The main factors for sending the index downward are sluggish
personal consumption, repeated hikes of fuel surcharge, and recovery
stall of China tours caused by anxieties over food safety with the
Olympics close at hand. Up to the last research, China and Asia had
narrowly kept a positive indication as destinations, but this time
China fell sharply to minus 29 points and Asia to minus one point,
with other destinations giving negative readings across the board.
Bleak outlook prevails in the market for the period from April
through June as well because of lackluster performance during the
spring holiday season derived from a short string of holidays.
Overall reading for the three-month period goes up only by five
points to minus 28 points.
Domestic travel kept nearly the same level as last time,
registering minus seven points. The reading for the next three months
shows an improvement to minus one point anticipating some diversion
from overseas travel.
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