Japanese tourism trend Expectation of Japanese tourists ......Tokyo 38.6 mio Nagoya 7.4 miio Osaka 17 mio •GDP: World No.3, 4.58 trillion € (8.2% of world GDP) •128 mio population,

Japanese tourism trend Expectation of Japanese tourists

Working culture of Japanese travel agencies

Shigeyoshi Noto Foresight Marketing

The shortcut between Asia and Europe

Flying via Helsinki means the geographically shortest route, smooth and uncongested transits, and straighter flights that generate fewer emissions.

31 weekly flights from Japan

Tokyo 38.6 mio

Nagoya 7.4 miio

Osaka 17 mio

• GDP: World No.3, 4.58 trillion € (8.2% of world GDP)

• 128 mio population, • 10th biggest population in the

world • 3 metropolitan areas (Tokyo

metropolitan area is No.1 in the world）

• 11 cities more than 1mio population

Geography

Demography

Baby boomer

Baby boomer Jr

Average longevity: 80.21 66% live in urban area Birth rate per couple:1.2

Japanese outbound traveling

The difference between 2 Asian markets The year of liberalization of overseas traveling

China

(1997)

Korea

(1989)

Japan

(1964)

Matured

7

Dawn of Japanese overseas traveling 1964

The Number of Japanese Travelling Abroad in 2016

(Thousands)

Source: Ministry of Justice “Statistics of Immigration Control”

9

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

13 296

16 831 17 404 17 535 17 295

15 987 15 446

16 637 16 994

18 491

17 473 16 903

16 214

17 116

Global Financial crisis

Great East Japan Earthquake

Iraq war/ SARS

Number of Overseas Travelers by Month

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Jan. Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec

(Thousands)

Source: Ministry of Justice “Statistics of Immigration Control” 10

Spring holidays Summer holidays

Golden Week

Silver Week

Fiscal year starts

• Many national holidays • Frequent long weekends • Short holidays • Less consumption of paid holidays

January

Golden Week

June-July

August

Silver Week

December

Numbers of Overseas Travelers by Gender and Age Group(2016)

312

414

1 077

1 751

2 360

1 948

1 302

465

303

542

1 743

1 341

1 235

1 051

908

364

0

500

1 000

1 500

2 000

2 500

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70+

Male

Female

(Thousands)

Source: Ministry of Justice “Statistics of Immigration Control”

19

Number of Overseas Trips Taken and Previous Travel Experience

An average 1.6 trips were taken by experienced overseas travelers during the year. About half of overseas travelers had made at least ten trips.

Once; 68,3%

Twice; 18,3%

3 times; 7,0%

4 times; 3,1% 5 or more;

3,2%

Number of Overseas Trips in 2016

Average: 1.6 times Average: 16.6 times

Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”

20

Once; 5,5%

2-3 Times; 12,8%

4-5 Times; 11,1%

6-9 Times; 15,7% 10-19

Times; 22,8%

20 or more times; 27,9%

No answer; 4,2%

Previous Experience of Overseas Travel by Market Segment in 2016

Market Share by destination (2016)

East Asia; 29,4%

China; 6,8%

Southeast Asia; 21,1%

U.S. Mainland; 6,9%

Canada; 1,1%

Hawaii; 9,2%

Guam/Saipan; 3,9%

South Pacific islands; 0,7%

Oceania; 3,1% Europe/Russia; 14,6%

Latin America & the Caribbean; 1,4%

Middle East/Africa etc.; 1,4%

No answer; 0,3%


21

22

Purpose of Travel (2016)

Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations” ”

Tourism; 70,0%

Honeymoon; 4,6%

To visit family or friends; 5,7%

Business trips; 12,2%

Training/inspection trips; 2,1%

Conference attendance;

1,4% Overseas

study/School trips; 1,4%

Others; 1,8%

No answer; 0,8%

23

Travel Duration: Europe/Russia

3,9%

36,1%

31,5%

37,3%

58,7%

21,8%

5,7%

4,4%

0,2%

0,4%

Europe/Russia

Overall average

1-4 days 5-7 days 8-14 days 15 days or more No answer


(100%)

24

Travel Companions

2016

2015

2014

2013

2012

2011

23,1%

22,2%

20,5%

20,0%

23,6%

23,6%

21,0%

20,9%

20,0%

20,7%

22,9%

22,6%

18,8%

19,3%

20,3%

20,3%

20,3%

21,7%

10,8%

9,4%

11,9%

11,5%

8,8%

8,8%

22,3%

23,6%

22,7%

22,6%

19,6%

19,7%

2,6%

3,0%

2,7%

2,8%

2,4%

2,2%

1,4%

1,6%

1,8%

2,1%

2,5%

1,5%

Husband or wife Family/ relatives Friends/ acquaintances

Fellow employees Alone Others

No answer

(100%)


Preferred Purpose of Travel

1,3%

2,4%

2,8%

4,5%

4,3%

5,8%

4,8%

9,7%

11,7%

13,0%

12,6%

18,4%

24,3%

32,7%

30,6%

37,9%

43,9%

60,9%

0% 20% 40% 60% 80%

Skiing or other winter sports

Sports (tennis, golf, etc.)

Gambling, shows

Experience latest fashions/trends

International sports events, carnival, etc.

Absorb foreign languages, expert knowledge

Concerts or other musical events

Stay at famous hotels

Meet local people for cultural and other exchanges

Deepen friendship with companions or enjoy family…

Water sports (windsurfing, scuba diving etc.)

Art galleries and museums

Experience different cultures

Shopping

Rest and relaxation

Local cuisine or favorite foods

Historic sites and architecture

Nature and scenery

25 Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference”

Activities at Destinations

2,4%

0,2%

0,2%

1,3%

1,6%

1,9%

1,9%

3,0%

2,0%

3,8%

4,1%

2,7%

5,2%

5,3%

5,2%

8,0%

7,8%

13,4%

17,1%

20,9%

25,8%

48,9%

61,7%

63,2%

59,7%

0% 20% 40% 60% 80% 100%

Others

Skiing

Business

Cruises with one or more overnight stays

Watching sports

Playing golf

Wedding ceremony

Gambling

Other sports

Driving

Hiking/ Mountaineering

Scuba diving

Night tour

Visiting family/friends

Day-return cruises

Theme parks

Theater performances/Concerts/Movies

Swimming

Beauty treatments/Massage

Rest & Relaxation

Art galleries & Museums

Historic and cultural attractions

Shopping

Gourmet sampling

Natural & scenic attractions

2016

2015

26 Source: JTB Tourism Research & Consulting Co. “Factual Survey of the Overseas Travel Situations”

27

Travel Costs by Destination: Europe/Russia

(10,000 yen)

28,5

18,3

2,8

2,8

4,8

3,7

0,8

0,8

0 10 20 30 40 50 60

Europe/ Russia

Overall average

Tour participation costs Local travel charges Shopping Other costs

Total: 25.6

Total: 36.9


28

Destination and Repeat Travelers2016

53,8

42,1

17

16,4

27,9

39,7

1,3

1,7

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Europe/ Russia

Overall average

First Second Third or subsequent No answer

29

Motivation for Overseas Travel

Could take a holiday; 39,0%

There was a destination I

wanted to visit; 31,9%

Travel regularly; 21,6% Recommended or

invited by family/friends;

18,1%

The cost was low; 17,7%

Could afford it; 11,1%

Honeymoon/ Overseas wedding ceremony; 6,3%

Frequent flyer miles; 3,7%

Graduation, retirement or other cerebration; 3,4%

Others; 3,6%


30

Travel Arrangement by Destination 2016

41,4%

36,6%

2,8%

3,2%

53,3%

58,5%

2,1%

1,3%

0,3%

0,4%

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Europe/Russia

Overall average

Package tours Group travel Individually arranged travel Others No answer

(n = 4,197)

(n = 613)

Source: Japan Tourism Marketing Co., “Factual Survey of the Overseas Travel Situation”

31

Travel Package Type by Destination: Europe/Russia

78,2%

46,2%

17,7%

49,9%

1,5%

1,4%

2,4%

0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 % 90 % 100 %

Europe/Russia

Overall average

Full-package tours Free-time package tours Others No answer


Travel Reservation Methods

51,7 54

56

60,6 58,4

60,8 62,2 62,9

21,3 20,5 19,7 17,4

15,7 17,2

16 17,2 17,3

14 13,5

12,1 12,6

10,1 8,8 7,9

1 0,3 0,2 0,1 0,4

0,4 0,3 0,3

11,5 11,5 10,2 9,5

12,3

11,7

12 11,6

2

3,2

3,2 3,5 3,5

3,7 3 2,9

0

10

20

30

40

50

60

70

2009 2010 2011 2012 2013 2014 2015 2016

Internet

Travel agency outlets

Mail order/telephone

Airlines

Don't know becausedon't book myself

Others

Internet

(%)


32

33

Desire to Travel Overseas by Gender, Age and Marital Status

2,1

2,7

4,6

5,4

7,5

8

4,6

14,2

11

33,3

29

35,8

14,5

18

31,4

34,6

36,1

41,9

26,4

29,7

33

28,4

26,6

13,9

16,1

18,9

23,9

24,2

8,5

5,8

2,8

3,2

5,7

5,1

6,1

13,7

19,2

9,3

4,3

5,7

18,8

14,2

0 % 20 % 40 % 60 % 80 % 100 %

Married women (age 40+)

Married men (age 40+)

Married women (age 18-39)

Married men (age 18-39)

Single women

Single men

Overall average

Plan to go within a year No plans, but hope to go Will go if an opportunity arises

Don't especially want to go No desire to go Don't know, No answer

Keen to travel Opposed

Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference”

Desired destinations

Ranking 2015 2016

1 Hawaii Hawaii

2 Italy Australia

3 France Italy

4 Australia France

5 Guam Guam/UK

6 UK Guam/UK

7 Switzerland Germany

8 Germany Switzerland

9 Spain Singapore

10 Canada Spain

18, Scandinavia & Finland Out of ranking : Scandinavia & Finland

Factors Hindering Overseas Travel

1.7% 1.7% 3.3% 3.9%

9.1% 9.4%

11.6% 11.6%

12.7% 13.8%

14.9% 21.2% 23.4%

28.4% 32.2% 35.0%

35.3% 46.0% 59.8%

0% 10% 20% 30% 40% 50% 60%

No acceptable tour schedule/itinerary/price

No one to go with

Takes too long to get to airport

Don't agree with foreign customs like tipping

Tiresome travel applications and procedures

Cannot take time off

Anxiety about health

Do not like foreign food

Language concerns

Security concerns

35 Source: JTB Tourism Research & Consulting Co. “Opinion Survey of Overseas Travel Preference”

SNS in Japan Jan,2016

Source: Nielsen research

SNS in Japan (2)

SNS in Japan (3)

39

Japanese Tourists to Finland by Year

146 433

176 919

205 988 192 007

203 411 214 495

0

50 000

100 000

150 000

200 000

250 000

2011 2012 2013 2014 2015 2016

Overnights by Japanese

Source: Finland Statistics

0

5 000

10 000

15 000

20 000

25 000

30 000

2014

2015

2016

2017

40

Japanese Tourists to Finland by Month

Source: Statistics Finland

comments

41

Japan

83,385,$18%$

191,462,$42%$

89,514,$20%$

88,576,$20%$

Denmark$ Finland$ Norway$ Sweden$

0%$

10%$

20%$

30%$

40%$

50%$

60%$

70%$

$?$$$$$$

$10$000$$$$

$20$000$$$$

$30$000$$$$

$40$000$$$$

$50$000$$$$

$60$000$$$$

$70$000$$$$

$80$000$$$$

Jan?14$

Feb?14$

Mar?14$

Apr?14$

May?14$

Jun?14$

Jul?14$

Aug?14$

Sep?14$

Oct?14$

Nov?14$

Dec?14$

Japanese$overnights$in$the$Nordic$

countries$

Sweden's$share$%$

Norway's$share$%$

Denmark's$share$%$

Finland's$share$%$

Finland$is$number$one$Nordic$desTnaTon$in$Japanese$markets.$

20

VISIT FINLAND STATISTICS 2015

3 client’s profiles for 3 seasons

•Elderly couples in summer season •All generations in winter season •Ladies in 20’s-40’s through the year

42

1365

1500

943 1017

1122

2012 2013 2014 2015 2016

The number of overnights in Kainuu

Japanese consumer behavior

Difference by areas 1

TOKYO

NAGOYA

OSAKA

Difference by areas 2 Countryside

Urban area

Difference by generation

1964

Japanese generally • They have very limited linguistic ability

• Well known as good manner people

• Their holidays are quite short

Trend going on • Group traveling →Individual traveling

• Ordinary sightseeing →Purpose led programs

• Touring around → Single destination

Important Segment – Travel Savvy Seniors

GREY Worldwide Inc. 49

“I don’t want to miss the world’s must-see

touching sites/experiences in my life”

Demographics

• 60s +

• Rich senior couples

• Retired

Who they travel with

• Travel on her own

• With Husband, or

Female friends

Important Segment - Culture oriented girls

50

“I like to travel as if I were living like stylish locals…”

Demographics

• 25 – 45 year old female

• mid to high income

• Living in metropolitan areas

•Travel on her own

•With Husband, or Female

friends

Decision making process

• Ladies are decision makers

• Influence by

Short-haul destination: word of mouth

Long-haul destination: HP of tourist offices &

agents

Preparation period

• Japanese still appreciate printed materials in Japanese

• They want to get as much as practical information as possible, such as weather, cloths, transportations, map e.t.c.

• Concrete proposals are more attractive for them

During trip • Smiling is worth while million euro promotion

• Japanese are not so active people.

• Wifi is must service not only in accommodation but also everywhere.

• “Enjoy yourself “ doesn’t work

• Let’s offer smaller volume

• We can treat them in local way, but a bit more explanation

• The body temperature is lower

• No need Japanese meals

• Room with bath tube

• Twin bedded room

• Time difference

After trip

• They are potential repeat travelers

• Complains come afterward

55

Market Trend

Preferred Travel Style (1)

0 10 20 30 40 50 60 70 80 90

As many country as possibleOne or two destinations

Travel often even it's shortTravel as long as possible, even it's…

Visit same destination repeatedlyVisit different place each time

Stay at prestagious hotel, even expensiveStay at any hotels with basic amenities

Eat delux mealsEat at restaurant locals do

Travel in large groupTravel with few friends

Source : JTB Report 2014

Preferred Travel Style (2)

0 10 20 30 40 50 60 70 80

Seek place travelers rarely visit

Visit Famous destination

Arrange myself

Package tour

Make many shoppings including suvenirs

Minimum shopping for myself

Purchase brand goods

Purchace amenities and goods locals do

Spend enjoyable time with travel…

Sightseeing and experience on the spot

Source : JTB Report 2014

Japanese Travel Trade

10,100 companies in

2016

Category Ⅰ

708

Category Ⅱ

2,827

Category Ⅲ

5,668

Referral Agent

810

How many travel agencies in Japan ?

Organize packages • Overseas • Domestic Sell packages • Overseas • Domestic Ordered • Overseas • Domestic

Organize packages • Domestic Sell packages • Overseas • Domestic Ordered • Overseas • Domestic

Sell packages • Overseas • Domestic Ordered • Overseas • Domestic

Consignment sales under the name of travel agents.

J.A.T.A.

Structure

Land Operators Travel agents Whole sellers

Accommodations

Restaurants

Transportation

Guides

Activities

Retailers Consumers

Airlines

Size of the companies • No direct deal

• Job rotation

• Long process for production

• Handling all over world

• Own package brand

• Difficult to find out the key persons

Major

(1000 staff-)

• No direct deal

• Handling most the major destinations

• Client specific

• Strong ownership by CEO

• Easy to find the key persons

Middle

(50-few hundreds staff)

• Possible to deal directly

• Product or destination specific

• Good knowhow on the destinations

• Destination specific

• No capability for issuing flight tickets

Small

(-50 staff)

Airlines

• 25 international airports in Japan

• 55 airlines fly from Japan

• Competition with other Asian routes

• Influence by fuel surcharge on travel demand

• Shift from Narita AP to Haneda AP

• Finnair and Japan Air Line have totally 35 weekly flights in summer.

• Mid-East airlines advance to European business

Role of Land (Tour) Operators

• Offices in Japan

• Communication in Japanese

• Frequent sales calls

• Interpretation between local and Japanese culture

• Control package tour itineraries

• Support sales events of agents

Possibility to shift toward direct consumer sales

Travel Agency Act

• Strict consumer protection law

• Indirect influence to you

Contact with Japanese travel trade

Start up • Business doesn’t start only one time contact • Find out good partners in Japan (TO, Visit Finland e.t.c.) • Prepare information in Japanese (incl business cards in Japanese) • Specific high quality photos are important • Key person is in Japan Negotiation with Japanese travel trade • Find out the key persons • Response in 2 business days • Different fiscal year • Notice Japanese calendar • Let’s introduce your area before your products

Contact with Japanese travel trade

Actual business • Don’t change the itinerary you confirmed • Don’t hesitate to ask when you have questions • Package tours • Tour escort ( Staff, Contracted person) • Japanese speaking guide is important • The volume and the price • Sometimes Skype meeting • Silent breaking up • Measure the costumer satisfaction • Minimum requirement or sales argument

Your news source on Japanese trade

• Travel Voice (https://www.travelvoice.jp/english/) • JTB Tourism Research & Consulting Co. （http://www.tourism.jp/en/）

https://www.travelvoice.jp/english/https://www.travelvoice.jp/english/http://www.tourism.jp/en/

New trend and new comers

• Travel agencies shift to inbound business

• Package tour business is getting smaller

• Aggressive non-Japanese OTA and Hotel Booking Engines (Expedia, Booking.com)

• Cruise business is popular among senior

• Cooperation between LCC and agencies

• Website is main booking tools among consumers

• More individual traveling, more solo traveling

New trend and new comers

Trippiece (http://trippiece.com) Veltra (https://www.veltra.com/jp/) Tabippo (http://tabippo.net)

http://trippiece.comhttp://trippiece.comhttps://www.veltra.com/jp/https://www.veltra.com/jp/

Informative society

Japanese services

The condition tour operator association recommend when new business starts with suppliers.

Transportation • The company licensed by local authority • Utilizing the vehicles licensed by local authority • Following the low to maintenance the vehicles • Following the driving regulation by local authority • Having insurance regulated by local authority • Having emergency contact • Driver hopefully speaks English • Check the record of serious accident • Having appropriate working condition of the drivers

The condition tour operator association recommend when new business starts with suppliers.

Accommodations ・ Licensed by local authority • Following the local laws as accommodation • Having proper system for fire such as exits • Good security system • Following the local sanitation law • Immediate action plan for injuries and emergency

. Restaurants • Licensed by local authority and following the food, sanitary regulation • Having proper system for fire such as exits • Environment around restaurant should be clean enough • Check the record of accidents, incidents, criminal case by local authority

Vuokatti project Going to the blue ocean

Sport Tourism Event Tourism Rural Tourism

Potential products promoted

©2017Foresight Marketing. All right reserved 76

• Sport tourism National teams, Universities, High schools, School camps, MICE

• Event tourism Dance pavillion for senior people, Concerts/ Music /festivals for music fun

• Rural tourism Yung ladies/ Mother & Dausghters :

Farm stays, Cottage stays, Nature activities

THANK YOU

Documents

Japanese tourism trend Expectation of Japanese tourists ......Tokyo 38.6 mio Nagoya 7.4 miio Osaka 17 mio •GDP: World No.3, 4.58 trillion € (8.2% of world GDP) •128 mio population,