Global Tourism Summit 2018 · #GTSHAWAII 5 Unemployment rate 2.5% 2017 2018 2019 Japan’s GDP...

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Global Tourism Summit 2018

Japan Market

#GTSHAWAII

Eric Takahata

Managing Director

Hawai‘i Tourism Japan

etakahata@htjapan.jp

Session overview

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1. Japan market update

2. Major opportunities

3. 2019 Leisure initiatives

4. 2019 MICE initiatives

5. Responsible tourism

6. Top takeaways

Japan market update

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Unemployment rate

2.5%2017 2018 2019

Japan’s GDP

1.71% 1.21% .92%

Exchange rate

¥111

Japan market trends

Japan’s economy

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Consumer confidence

43.5%Consumption tax

increase

10%

Japan market trends

Japan’s economy

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Hawai‘i price positioning

Japan market trends

Okinawa (3 nights)

Taiwan (3 nights)

Korea (3 nights)

Bankok (4 nights)

¥ 41,750 $ 417.50

¥ 35,988 $ 359.88

¥ 28,950 $ 289.50

¥ 56,138 $ 561.38

Guam (4 nights)

Saipan (4 nights)

Australia (3 nights)

Hawai‘i

¥ 94,850 $ 948.50

¥125,208 $1,252.08

¥152,400 $1,524.00

¥162,600 $1,626.00

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Japan market trends

2017 Japan outbound travel market

Hawaii

9%

China

16%

Korea

12%

Taiwan

10%Thailand

8%

Hong

Kong

7%Vietnam

4%

Singapore

4%

Guam

3%

Philippines

3%

Australia

3%

Other

22%

Hawaii

China

Korea

Taiwan

Thailand

Hong Kong

Vietnam

Singapore

Guam

Philippines

Australia

Other

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0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

January February March April May June July

2017 2018

1.49% decrease

from 2017

884,644 visitor arrivals

Japan market trends

Japan visitor highlights

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7.16% increase

from 2017

$1.34 billion total expenditures

$1,160.0

$1,190.0

$1,220.0

$1,250.0

$1,280.0

$1,310.0

$1,340.0

$1,370.0

$1,400.0

January - July

2017 2018

$1.34

$1.25

Japan market trends

Japan visitor highlights

Japan market trends

Airlift

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Fuel surcharge rates (¥)

2016 2017 2018

Japan market trends

Consumer

• Government initiatives

• Consumption habits

• Sharing economy

• Millennials

Japan market trends

Travel trade

Changing Japan

visitor profile

Rapid growth

of FIT market

Rise in repeat

visitors

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Japan market trends

Technology

IoT & AITechnology for

workforce development Virtual reality promotions

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Japan market trends

Japan natural disasters

Natural Disasters Dates (2018) Area

Earthquake 9/9 Hokkaido

Typhoon 21 (Jebi)

8/28 - 9/5 Kinki

Typhoon 20(Cimaron)

8/18 - 8/24 Kinki, Shikoku

Typhoon 12(Jongdari)

7/25 - 8/3 Kinki, Kanto

Torrential Rains 6/28 - 7/9 Kinki, Chugoku

Earthquake 6/18 Kansai

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Japan market trends

Airline

• Focus on Kona recovery efforts

• Regional cities potential/charter flights

• Increased competition anticipated in 2019

• Airbus A380 implementation by ANA

Major opportunities

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Major opportunities

#1

Eleven 3-day weekends

Extended Golden Week

JTB’s Global Destination

Campaign

#2

#3

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Major opportunities

Applying technology

for targeted promotions

Growing FIT market

Rising world tourism

population

#4

#5

#6

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2019 Leisure initiatives

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1. Discover Hawai‘i Campaign

2. Neighbor Island Promotions

3. Affluent Market Promotion

4. Romance Market Program

5. Millennial Campaign

6. Aloha Program

7. Regional City First-Timer Promotions

8. Collaboration with Private Companies:

“Konin” Program

2019 Leisure initiatives

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189,551 210,000 230,000

57,738 59,600 60,800

26,502 26,600 27,200

2,515 2,540 2,590

2,373 2,400 2,450

2019 Leisure initiatives

Neighbor Island Promotions

Hawai‘i Island

Maui

Kaua‘i

Moloka‘i

Lāna‘i

2017 Japanese

Arrivals2018

Forecast

2019

Goal

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2019 Leisure initiatives

Neighbor Island Promotions

Goals

• Increase media exposure

• Apply digital marketing to raise awareness

• Educate consumers and agents

• Enhance product development

• Co-op with airlines, wholesalers and OTA

• Improve infrastructure

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2019 Leisure initiatives

Regional City First-Timer Promotions

Narita

47.79%

Haneda

15.26%

Kansai

23.33%

Nagoya

6.51%

Sapporo

3.93%

Fukuoka

3.18%

Daily air seats

7,077 (*July 2019)

Tokyo

63.05%

1.89 of 2.14 million seats from Japan are expected

to originate from two major regions

Initiatives

• Regional City Media + Travel Agencies

+ Airlines + HTJ Co-op Campaigns

• Satellite Office promotions

• Passport campaigns

2019 MICE initiatives

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2019 MICE target pillars

1. Incentive

2. Edu-tourism

3. Sports

4. Entertainment

5. Attendance building

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Responsible tourism

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Responsible tourism

• Aloha Program’s focus on

Hawaiian culture

• Cultural FAM tours

• Development of cultural packages

for first timers and repeaters

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Responsible tourism

• MICE edu-tourism and exchange

program opportunities

• Partner with local nonprofits

• Collaborate with industry partners to

develop responsible tourism products

Top takeaways

Top takeaways

#1 Japan is Hawai‘i’s top international market

Top takeaways

#2 Danger of “business as usual” as Japanese visitors evolve

2006 2018

Top takeaways

#3 Weathering future storms

Questions?

#GTSHAWAII

Eric Takahata

Managing Director

Hawai‘i Tourism Japan

etakahata@htjapan.jp

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