section 2 current status of tourism and future …...in the case of france, the annual number of...
TRANSCRIPT
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Section 2 Current status of tourism and future challenges for enhancing value added
As a result of economic growth in China and other emerging countries, the number of foreign
travelers is increasing around the world. In order to attract the increasing flow of tourists and stimulate
tourism consumption, countries are implementing various measures. For example, Thailand increased
its tourism revenue five-fold over a period of around 10 years by implementing tourism promotion and
various other measures. On the other hand, although the number of tourists to Japan has risen steeply in
recent years, the country was ranked 22nd in the world (2014) in in terms of the number of foreign
tourists received (Table II-2-2-1).
Table II-2-2-1 Ranking of the number of foreign tourists (2014)
1st France 83,770,000
2nd US 75,010,000
3rd Spain 65,000,000
4th China 55,620,000
5th Italy 48,580,000
14th Thailand 24,810,000
…
22nd Japan 13,410,000
Note 1: Tourists who visit these countries for a purpose other than sightseeing are also included.
Note 2: The number of tourists to Japan in 2015 is 19,740,0000.
Source: World Bank
In this section, we will explain the current status of and challenges for tourism in Japan and describe
the direction of measures that should be taken in order to spread economic benefits to the tourism
industry based on comparison with tourism measures implemented by France, which attracts the largest
number of tourists in the world, and Thailand, which is second only to China in terms of tourism
revenue in Asia.
1. Global tourism trends and the current status of tourism in Japan
(1) Rising number of tourists around the world
As a result of economic growth in emerging countries, among other factors, the number of tourists
around the world has been increasing by slightly less than 50 million annually, surpassing 1,180 million
in 2015 (Figure II-2-2-2). The number of foreign visitors to Japan also increased to 19.74 million in
2015, almost tripling from 6.73 million in 2006, due to the effects of the easing of visas for tourists from
Thailand, Malaysia and Indonesia and the yen’s weakening in recent years. The growth rate of the
number of foreign tourists to Japan, which was about 10% around 2005 compared with the previous
year, increased to 47% in 2015. In particular, the growth in the number of tourists from Asian countries
was steep, with the number of tourists from China recoding the highest growth rate ever (107%
compared with the previous year). Other countries have also been recording growth in terms of the
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number of tourists received and tourism revenue. In particular, the United States, which earns the largest
tourism revenue in the world, saw its tourism revenue double over the 10-year period between 2003
(101.5 billion dollars) and 2013 (214.8 billion dollars). Thailand’s tourism revenue grew by about five-
fold over the 10-year period. In the case of France, the annual number of tourists received is larger than
its population size (FigureII-2-2-3). Tourism has thus become an important industry for many countries.
Figure II-2-2-2 Changes in the number of tourists around the world
Source: World Tourism Organization (UNWTO) and Japan National Tourism Organization
Figure II-2-2-3 Changes in the number of tourists and tourism revenue in various countries
(2004-2013)
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Note: As for Japan, the period is extended to 2015, using the Balance of Payments and population
projections by the Ministry of Internal Affairs and Communications.
Source: World Bank Database
(2) Current status of the balance relating to travel in Japan
As the number of arrivals in Japan was far smaller than the number of departures from the country
until around 2003, Japan’s balance relating to travel remained in deficit for decades. However, in recent
years, the number of departures has remained flat, whereas the number of arrivals has increased
significantly (Figure II-2-2-4), and consequently, the value of travel service receipts exceeded the value
of travel service payments in 2015, returning Japan’s balance relating to travel to a surplus for the first
time in 53 years (Figure II-2-2-5).
Figure II-2-2-4 Changes in the number of arrivals and departures in Japan
Source: "Number of Foreign Visitors" (Japan National Tourism Organization)
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Figure II-2-2-5 Changes in Japan’s balance relating to travel (ratio to GDP)
Source: "Balance of Payments" (Bank of Japan ) and "GDP Statistics" (Cabinet Office)
Meanwhile, Japan’s payments relating to travel have been declining year after year, indicating a
downtrend in consumption abroad by Japanese tourists. The number of departures from Japan has
remained almost flat compared with the number in 1995.
As for the trend in Japan’s tourism revenue in terms of contribution by region, revenue from China
and revenue from Asia excluding China have grown rapidly since 2013 (Figure II-2-2-6). Regarding
both of these regions, Japan’s receipts relating to travel have increased steeply while payments have
decreased. As for the balance with the United States and Europe, Japan’s receipts have remained flat
while payments have decreased, resulting in a decrease in the deficit (Figure II-2-2-7). On the other
hand, the decrease in payments means that the number of Japanese tourists to the United States and
Europe has declined. From the viewpoint of people-to-people exchange, it is important to increase
payments as well in the future.
Figure II-2-2-6 Changes in the balance relating to travel (ratio to GDP) by region
Source: "Balance of Payments" (Bank of Japan ) and "GDP Statistics" (Cabinet Office)
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EU China US Asia (excluding China)
(%)
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Figure II-2-2-7 Changes in travel service receipts and payments (ratio to GDP) by region
2．Initiatives to spread the benefits of the increase in tourists to local industries
(1) Resourceful measures to broaden the scope of tourism in France
It is important not only to increase the number of tourists but also to spread the benefits of
consumption by tourists to local industries. In this paragraph, we will look at examples of initiatives to
promote the spread of the benefits of tourism to local industries in France and consider suggestions for
Japan.
France is conducting various analyses and promotional activities concerning tourism. Here, we will
focus on experience-based tourism, which is a factor of France’s success in promoting tourism. In France,
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(%) China
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regions are implementing various experience-based tourism programs (Figure II-2-2-8) in order to
encourage tourists to make repeat visits by taking advantage of their respective specialty products.
Figure II-2-2-8 Examples of experience-based tourism programs in France
Bordeaux: Wine ▸ The downtown of Bordeaux has been
renovated and upgraded. The City of Bordeaux has globally promoted itself as a town of wine, opening a wine museum in 2009 along with brand new restaurants and shops.
▸ Caudalie is a popular cosmetic brand that provides products made from byproducts of wine. The store also has a spa facility called “Caudalie Vinothérapie Spa,” which is leading to longer stays by tourists.
Cognac: Cognac (brandy) ▸ Visitors can buy cognac and designate
its composition to their taste.
Toulouse: Indigo dye and beauty products ▸ Toulouse used to be a producing region
of indigo dye but the industry declined over time. The houses of dyers have become the town’s tourism resources.
▸ Beauty products made from pastel are used at hotels and are selling successfully.
Grasse: Perfumes ▸ Grasse is known for perfumes. Visitors
can create an original beauty cream to their taste.
Source: “Survey on the Influence of the Rise of Innovative Industries on Trade and Investment Patterns
around the World” (Accenture)
The Beaujolais region, which is known for the Beaujolais Nouveau wine, has stimulated consumers’
interest and attracted tourists by promoting its wine based on the narrative of the new wine being
released at midnight on the third Thursday of each November. At the same time, the region is
encouraging tourists to make repeat visits through experience-based tourism. The annual Sarmentelles
festival, which is held to coincide with the release of the Beaujolais wine, is a popular event that attracts
Beaujolais wine enthusiasts from countries around the world. In addition, the French government has
introduced a system to accredit wine cellars as wine tourism destinations where wine tasting and grape-
harvesting experiences are offered. In the Beaujolais region, nearly 200 wine cellars have been
accredited under this system. Partly as a result of such public relations activities targeted at foreign
tourists, around 45% of the Beaujolais Nouveau wine are exported (Figure II-2-2-9). As an example of
initiatives other than experience-based tourism, the city of Bordeaux, known as a producing region of
luxury wine, renovated its downtown area and opened the Wine and Trade Museum, which was
converted from a wine cellar in 2009, in order to attract foreign tourists. As a result, the number of
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tourists to the Gironde department, where Bordeaux is located, has been trending upward since 2009
(Figure II-2-2-10). Meanwhile, the French city of Lyon, focusing on the correlation between tourism
and inward foreign direct investment, established an organization called ONLY LYON through which it
is implementing centralized promotional campaigns in order to attract tourists, foreign direct investment
and foreign students. ONLY LYON is implementing campaigns aimed at target cities common to these
three areas and is promoting press relations and the ambassador system. In 2014, ONLY LYON’s website
achieved 58.5 million page views as it attracted intense attention. In 2014, the number of inward foreign
direct investment projects increased 16% and the number of foreign tourists rose 15% compared with
2008, when ONLY LYON was established (Figure II-2-2-11).
Figure II-2-2-9 Volume of shipments of Beaujolais Nouveau wine to countries
Note: The unit is 100 litters.
Source: Website of Inter Beaujolais
Figure II-2-2-10 Number of tourists to the Gironde department
Source: DGE France
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2008 2009 2010 2011 2012 2013
（10,000）
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Figure II-2-2-11 Initiatives by ONLY LYON and the results
Source: Material based on interviews, Aderly Annual Report and the National Institute of Statistics and
Economic Studies (France)
As indicated in the above cases, Japan may also be able to spread the benefits of tourism to local
economies if experience-based tourism and other initiatives are implemented at the regional level.
(2) Direction of initiatives to be implemented at the national and regional level
It has been reported that a rise in the number of tourists leads to an increase in inward direct
investments not only in tourism-related industries but also in other industries59. Therefore, it is important
to coordinate activities to promote tourism and attract inward foreign direct investments in addition to
increasing the number of tourists. For example, in France, efforts are being made to produce synergy
effects by implementing measures to promote foreign direct investments and tourism through a single
organization, as in the case of ONLY Lyon that was mentioned above. It has also been reported that
tourism has a positive correlation not only with inward foreign direct investment but also with exports
of local specialty products60. On the other hand, the degree of such correlation may change depending
on measures implemented by national governments, among other factors. Although Okinawa Prefecture
is promoting tourism and local products in a coordinated manner, initiatives like this are limited to some
regions. In the future, it will be important to increase such regional initiatives.
3. Creation of tourism with high value added
It has been pointed out that major cultural heritage sites in Japan tend to charge low entry fees
59 Akinori, T. (2016). 60 François, V. (2011).
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compared with their counterparts in Europe and elsewhere (Figure II-2-2-12), with the result that they
are failing to provide services with high value added. Therefore, it is necessary to further attract tourists
by improving the quality of such sites as tourism contents through the enhancement of easy-to-
understand, multi-lingual information and promotion of the use of such sites as boarding facilities and
unique venues61 for tourism. In the case of tourists to Japan, after their first visit to the country, their
focus of expectations tend to shift from shopping to other activities such as cherry-blossom viewing,
skiing, visiting hot spring spas and having cultural experiences (Figure II-2-2-13). In order to develop
the capacity to satisfy demand for such activities, it is an urgent task to promote experience-based
tourism with high value added. In addition, given the shortage of luxury boarding and resort facilities
for accommodating wealthy travelers, it is important to develop such facilities.
Figure II-2-2-12 Comparison of entry fees at major cultural heritage sites in Japan and Europe
Source: Material provided at the meeting of the Financial System Subcommittee, Ministry of Finance
(April 7, 2016)
61 Unique venues are historical buildings, public spaces and other sites that may demonstrate uniqueness
and local features when used as places of events such as conferences and receptions.
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Figure II-2-2-13 Changes in tourists’ expectations before and after their visits to Japan and
distribution of the number of visits to Japan
Note 1: The colors are changed for the 5 items with the largest gaps between the number of tourists who
chose the item as a thing that they wish to try the next time they come to Japan and the number of tourists
who chose the item as what they expected before their first visit to Japan.
Note 2: Results of the counting of responses from tourists who answered their purpose of visit to Japan
was “sightseeing and leisure”
Source: Consumption Trend Survey for Foreigners Visiting Japan (annual values as of 2015)
4. Challenges for tourism in Japan and governmental initiatives
(1) Analysis of tourists from various countries
While the number of tourists to Japan has recorded the highest-ever growth recently, most of the
tourists come from Asian countries. In 2015, tourists from East Asia and Southeast Asia accounted for
more than 80% of the total number of tourists to Japan. Meanwhile, shopping accounts for a large portion
of the consumption by tourists to Japan, and in the case of Chinese tourists, who form the largest group
of tourists to Japan by nationality, the share of shopping in their consumption in Japan came to 57.1%
in 2015 (Figures II-2-2-14 and II-2-2-15). Although “bakugai,” or binge shopping, by Chinese tourists,
is generating huge revenue for Japan, it is partly a result of the yen’s weakening, so such shopping
activity may change depending on future exchange rate fluctuations (Figure II-2-2-16). Another notable
feature is the small number of tourists from the United States and European countries. Tourists from the
United States and European countries tend to spend more on consumption per capita and stay longer
(Figure II-2-2-17). However, compared with other Asian countries such as Thailand and China, Japan is
attracting relatively few tourists from the United Kingdom, for example (Figure II-2-2-18).
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Figure II-2-2-14 Composition of foreign tourists to Japan by nationality
Source: “Monthly Number of Foreign Visitors to Japan by Nationality” (JNTO)
Figure II-2-2-15 Consumption per capita by Chinese tourists by item
Source: “Consumption Trend Survey for Foreigners Visiting Japan 2015,” “Number of Foreign Visitors
to Japan 2015” and “Action Plan” (Japan Tourism Agency)
0%
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Figure II-2-2-16 Recent exchange rates of China Yuan Renminbi to Japan Yen
Source: Thomson Reuters EIKON
Figure II-2-2-17 Length of stay of foreign visitors to Japan by nationality and their
consumption per capita
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Germany
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■Regions other than Asia
■Asia
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(10,000 yen)
Consumption per capita by foreign visitors to
Japan by nationality
■Regions other than Asia
■Asia
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Results of the counting of responses from tourists who answered their purpose of visit to Japan was
“sightseeing and leisure”
Source: "Consumption Trend Survey for Foreigners Visiting Japan 2015" (Japan Tourism Agency)
Figure II-2-2-18 Comparison of the number of tourists from the United Kingdom to major
Asian countries (2014)
Note: Due to data restrictions, only the number of tourists from the United Kingdom, among other
European countries, is compared.
Source: United Kingdom Office for National Statistics
Here, we will analyze whether the recent rise in the number of tourists to Japan is due to an increase
in people who select specifically Japan as a foreign travel destination or an increase in the frequency of
travel per person by looking at the share of tourists to Japan in the total number of departures (Japan
selection rate) and the annual frequency of foreign travel (foreign travel frequency) on a country-by-
country basis. First, in the case of Chinese tourists, who form the largest group of tourists to Japan by
nationality, the Japan selection rate has remained flat, while the foreign travel frequency has increased
(Figure II-2-2-19). In other words, the number of Chinese tourists to Japan has been increasing mainly
because the number of Chinese people who travel abroad in general has been rising because of increased
economic affluence in China, among other factors. The Japan selection rate has also stayed flat in the
United States, Singapore and Indonesia. In contrast, the Japan selection rate has been rising in Thailand,
Hong Kong and Taiwan, suggesting that the number of tourists from these countries has been increasing
because of such factors as the effects of currency exchange movements and Japan’s increased
attractiveness as a tourism site.
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Figure II-2-2-19 Japan selection rate and annual frequency of foreign travel among tourists to
Japan
Generally speaking, most countries are experiencing an increase in the number of tourists from
neighboring countries. Accordingly, in Japan, the shares of tourists from China and other Asian countries
are growing. In addition, as the increase in the number of tourists is mainly due to a higher frequency of
foreign travel caused by increased economic affluence in the neighboring Asian countries, Japan may
be able to expect a further increase in tourists by increasing the Japan section rate through the
enhancement of its attractiveness as a tourism site (Figure II-2-2-20).
Figure II-2-2-20 Japan selection rate in various countries (2014)
Source: Data by JNTO, etc.
0.226
0.142
0.093
0.048
0.022 0.015 0.014 0.010 0.009 0.0020.000
0.050
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(2) Challenges for tourism in Japan
Here, we will consider challenges that Japan’s tourism industry must overcome in order to raise the
Japan selection rate. First, the small number of European tourists to Japan can be pointed out as one of
the serious challenges for tourism in Japan. The number of European tourists to Japan is a sixth as large
as the number of tourists to Thailand, another Asian country (Figure II-2-2-21). In order to attract tourists
from developed countries, Thailand is improving the environment for MICE (meetings, incentive travel,
conventions and exhibitions/events) attraction by providing financial support, allocating security guards
for important persons from abroad and providing airport shuttle service, and these efforts may be having
a significant impact on tourism in the country.
Figure II-2-2-21 Ratio of tourists to Japan and Thailand from various regions (2014)
Source: World Bank Database, Japan National Tourism Organization and material by Thailand Ministry
of Tourism and Sports
As shown by the setting of targets not only for the number of tourists but also for the number of
repeat visitors under the Tourism Vision, it is necessary to increase the number of repeat visitors to Japan
in the long term. In recent years, the number of tourists to Japan, mainly from China and other Asian
countries, has increased significantly, with many tourists visiting Japan for the first time. Reflecting this
fact, the repeat visit rate among visitors from neighboring countries other than Hong Kong, Taiwan, the
ROK, Singapore and Thailand is lower than 50% (Figure II-2-2-22). However, it may be said that there
is room for a further increase in the number of repeat visitors and the number of tourists to Japan in the
long term. Among repeat visitors to Japan, the percentage of tourists who are willing to visit local
regions other than standard sightseeing spots is higher than among first-time visitors (Figure II-2-2-23).
Therefore, it is important to successfully encourage repeat visitors to Japan to visit local regions.
0
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Japan Thailand
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Figure II-2-2-22 Ratio of repeat visitors to Japan (tourists coming to Japan for sightseeing and
leisure purposes) (2015)
Source: “Consumption Trend Survey for Foreigners Visiting Japan 2015” (Japan Tourism Agency)
Figure II-2-2-23 Changes in the percentage of tourists who are willing to visit Tokyo and local
regions
Note: The “golden route” refers to a popular travel route in Japan that connects Tokyo and Osaka (Tokyo,
Mt. Fuji, Hakone, Nagoya, Kyoto and Osaka are included) (confirmed based on material by DBJ and
JTBF).
Source: “Consumption Trend Survey for Foreigners Visiting Japan 2014” (Japan Tourism Agency) and
“Survey on the Interests of Foreign Tourists to Japan from Eight Regions in Asia” (DBJ and JTBF)
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From the viewpoint of encouraging tourists to local regions, 78% of tourists to Japan visit the
prefectures in the top 20% (eight prefectures) of the tourist destination ranking, which means that few
economic benefits of tourism are spreading to local regions (Figure II-2-2-24). On the other hand, in the
case of France, although Paris is outstanding in terms of the number of tourists received, tourists are
also distributed across other regions. By region, the concentration ratio of foreign tourists visiting the
regions in the top 20% is 61% (Figure II-2-2-25). A simple comparison between Japan and France is not
possible because unlike Japan, the whole of France is connected by land, but it may be said that
encouraging tourists to visit local regions is a challenge for Japan.
Figure II-2-2-24 Accumulated number of foreign visitors staying in each prefecture and
concentration in prefectures in the top 20%
Note: Prefectures marked with ● are located on the golden route.
The golden route includes Chiba, Tokyo, Kanagawa, Shizuoka, Aichi, Kyoto and Osaka (confirmed
based on the “Tourism Nation Promotion Basic Plan”).
Source: “Overnight Travel Statistics Survey” (Japan Tourism Agency)
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Figure II-2-2-25 Accumulated number of foreign visitors staying in each region and
concentration in regions in the top 20%
Source: “4 pages on DGE” (DGE France)
Another challenge is the small value of consumption of tourism-related services such as tour guide
services. The value of consumption of cultural services, including performance arts, in Japan is about a
fifth as large as the value in France, indicating the possibility that Japan is failing to induce consumption
by tourists interested in Japanese culture (Figure II-2-2-26). Other countries are striving to secure the
quality of tourism resources and enhance services in exchange for charging fees equivalent to thousands
of yen. However, in Japan, many famous temples, for example, do not collect fees from visitors, resulting
in a lack of sufficient financial resources for securing their quality. In Japan as well, to improve the
environment to better satisfy tourists it is necessary to charge fees on tourism resources, for example.
Figure II-2-2-26 Comparison of tourism consumption in Japan and France and interests of
foreign visitors to Japan
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Source: “Tourism Satellite Account” (GDE France) and “Tourism Satellite Account” (Japan Tourism
Agency) (The exchange rate is 141.92 yen to the euro. Based on “Yearly- Average TTS” (Mitsubishi
UFJ Research and Consulting))
(3) Initiatives conducted by the government and Japanese companies to tackle challenges
(A) Initiatives conducted by the government
In view of the fact that the target number of 20 million foreign visitors to Japan per year has come
within reach, the government established the Council for the Development of a Tourism Vision to
Support the Future of Japan on November 9 last year in order to set new targets for the next stage and
consider measures to achieve them. After vigorous debates among experts and relevant ministries and
agencies, on March 30 this year, new government targets, such as 40 million foreign visitors to Japan
and tourist consumption worth 8 trillion yen in 2020, were set Specific initiatives focusing on enhancing
tourism resources, strengthening the tourist industry’s competitiveness and improving the travel
environment were adopted (Figure II-2-2-27).
Figure II-2-2-27 Outline of the measures under the Tourism Vision to Support the Future of
Japan
■Allowing domestic and foreign tourists entry
to attractive public facilities ・Opening state guest houses in Akasaka and
Kyoto to the world in a generous manner ■Shifting the use of cultural properties from
‘an emphasis on preservation’ to ‘an emphasis
on their appreciation’ and ‘active use’ by
tourists ・Establishing 200 tourist attractions centered
on cultural assets across Japan by 2020.
Carrying out 1000 projects, including those
for multilingualization. Providing intensive
support ■Upgrading the current ‘national parks’ into
world-class ‘national parks’ ・With the power of the private sector,
upgrading five parks across Japan to a space
for experience utilizing the site by 2020 ■Making ‘landscape plans’ for major tourism
sites toward achieving beautiful townscapes ・In principle, all prefectures and half of
municipalities will formulae a landscape plan
by 2020
■Review old regulations, develop the tourism
industry into one which respect productivity ・Promotion and support through a
comprehensive policy package, which
includes the fundamental review of
regulations and systems that have been in
force for over 60 years, development of
human resources for top-level business
management, introduction of rules for
homestay, and improvement of productivity of
the accommodation industry. ■Develop new markets, realize both long-
term stays & expansion of consumer
consumption ・Promotional activities targeted at tourists
from Europe, the US and Australia, and
wealthy people and strategic easing of visas. ・Fundamental improvement of the system to
support invitation and holding of MICEs. ・Improving the environment to accept
business jets in the Tokyo metropolitan area ■Regenerate & revitalize deadbeat hot-spring
districts & local towns with future-oriented
management ・Establishing 100 world-class DMOs across
Japan by 2020 ・Achieving stable and continuous city
development based on tourism by maximizing
the power of the private sector through the
fund for the revitalization and activation of
tourist sites and easing of regulations.
■Greatly improving tourism’s hard and soft
infrastructure so that tourists can enjoy the
most pleasant accommodation environment in
the world ・Drastically changing what immigration
looks like by utilizing technologies of the
world’s top level ・Establishing a stress-free
telecommunication and transportation
environment ・Realizing cashless tourism ■Completing ‘regional revitalization
corridors’ towards realizing comfortable travel
to every corner of Japan ・Making “Japan Rail Pass” available for
purchase after arrival in Japan ・Reinforcing transportation to access tourist
sites in coordination with the opening of
Shinkansen bullet trains and airport
concession management ■Reforming the system of ‘work days’ and
‘days off’ towards realizing a more vibrant
society ・Improving the ratio of the use of annual
paid leave to 70% by 2020 ・Introducing a system to make it easier for
family members to take leave and leveling
tourism demand by distributing holidays
Vision 1 Maximizing the attractiveness of tourism
resources toward making tourism the base
of regional revitalization
Creating a
tourism
environment
where every
visitor can
travel
comfortably
without any
stress
Vision 2 Innovate tourism industry, boost its
international competitiveness, develop it
into Japan’s key industry
Vision 3 Creating a tourism environment where every
visitor can travel comfortably without any
stress
460
Source: Material provided at a meeting of the Council for the Development of a Tourism Vision to
Support the Future of Japan
In order to invigorate local industries, it is also important to provide foreign visitors with
opportunities to experience local traditions and culture and promote exports of local craftworks. The
Tourism Vision to Support the Future of Japan, which was adopted on March 30, calls for such measures
as implementing a promotional strategy under which influential opinion leaders from the United States,
Europe and Australia and employees of publishers of foreign travel magazines targeted at wealthy
people and travel companies will be invited to Japan in order to have them experience Japanese traditions
and culture and encourage them to disseminate information abroad as part of the Visit Japan Campaign.
Regarding exports of local products, the Tourism Vision aims to increase the number of producing
regions of traditional craftworks well prepared to receive foreign visitors to more than 100. In the future,
the environment to receive foreign visitors will be further improved.
(A) Initiatives conducted by Japanese companies
Regarding initiatives conducted by Japanese companies, many companies have recently introduced
free-of-charge public wireless LAN and foreign-language menus, for example. In the long term, many
companies intend to employ foreign workers and develop products targeted at foreign markets (Figure
II-2-2-28). Most companies are facing a shortage of foreign workers capable of handling foreign visitors
to Japan (Figure II-2-2-29).
Figure II-2-2-28 Companies' initiatives to create opportunities for business with foreign
tourists
0 5 10 15 20
Training employees on foreign cultures and languages
Launching duty-free sales
Developing new products and services for foreigntourists
Securing human resources with high foreign languageproficiency
Building partnership with governmental agencies, localcommunity and other companies
Promoting products and services on SNS and blogs
Developing online reservation and credit card paymentsystems
Developing free public wireless LAN
Promoting products and services on websites in foreignlanguages
Creating menus and instructions in foreign languagesfor existing products and services
Future (n=298) Present (n=295)
461
Source: “Questionnaire Survey on the Growth and Investment Activities of Small and Medium-sized
Companies” (Teikoku Databank)
Figure II-2-2-29 Foreign workers capable of handling foreign visitors to Japan (n=1893)
Source: “Questionnaire Survey on the Growth and Investment Activities of Small and Medium-sized
Companies” (Teikoku Databank)
In addition to utilizing foreign workers, it is also important to develop and enhance human resources
in the tourism industry, from top-level managers to rank-and file workers capable of making immediate
contributions. The Tourism Vision set the policy of developing and enhancing such human resources to
support the tourism industry and formulating measures to expand the supply of licensed guides for
foreign tourists. Employing workers capable of providing tourism-related services may become an
important factor for companies trying to capture tourism demand.
(4) Initiatives conducted by Thailand to increase the number of foreign tourists
Thailand, which has attractive tourism resources, including cultural heritage sites and tourist beaches,
is conducting initiatives to increase the number of foreign tourists by making effective use of the
resources through promotional activities and the improvement of the environment to receive tourists
(Figure II-2-2-30). In addition, resorts for wealthy people, including luxury hotels, are well developed
in Thailand. Looking at the ratio of tourism revenue (exports of travel services) to GDP in Thailand, it
is clear that tourism is an important industry for Thailand (Figure II-2-2-31).
Companies with foreign workerswho are proficient in Japanese orhave international sensibility3%
Companies with other types offoreign workers1%
Companies without any such
workers96%
462
Figure II-2-2-30 Thai government’s initiatives on tourism
Source: Websites of the Thailand Film Office and the Department of Tourism of Thailand and various
press releases
Figure II-2-2-31 Ratio of exports of travel services to GDP (2014)
Source: WTO Statistics and United Nations National Accounts Aggregates
Here, we will look at tourism-related measures implemented by Thailand and the current status of
the country’s tourism industry as a reference for tourism-related measures that may be adopted by Japan.
First, Thailand determines its promotional strategy in consideration of which countries are possible
competitors as tourist destinations and the tourism market conditions. Via Facebook, Thailand
successfully appeals to tourists in various markets by not only using different languages but also varying
9.5
%
3.7
%
2.7
%
2.2
%
2.1
%
2.0
%
1.6
%
1.3
%
1.3
%
1.2
%
1.1
%
1.1
%
1.0
%
1.0
%
1.0
%
0.9
%
0.6
%
0.5
%
0.4
%
0.3
%
1.6
%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Thai
land
Turk
ey
Sou
th A
fric
a
Aust
rali
a
Ital
y
Fra
nce
UK
RO
K
Mex
ico
Indonesi
a
Ger
man
y
Sau
di
Ara
bia
US
Can
ada
India
Arg
enti
na
Ru
ssia
Chin
a
Jap
an
Bra
zil
Glo
bal
tota
l
463
the contents of the information depending on whether the information is targeted at tourists from Japan
or tourists from the United States and Europe. Moreover, video information used for advertising is
placed under the jurisdiction of the film bureau of the Tourism Authority in order to secure high quality.
As for the improvement of the environment to receive foreign tourists, Thailand is improving the
environment to provide services in English. For example, regarding healthcare tourism, doctors usually
have English proficiency as they receive medical training through English-language teaching materials.
In addition, healthcare staff members are granted bonuses in accordance with their TOEFL scores. Also,
users can receive translation services without paying additional fees. As a result, there is an environment
that enables foreign visitors to feel at ease when receiving healthcare services. Furthermore, Thailand
provides foreign honeymoon package providers with online training programs concerning the contents
of honeymoon packages available in Thailand.
Regarding MICE, Thailand disseminates MICE-related information and provides incentives, mainly
through a public corporation called the Thailand Convention and Exhibition Bureau (TCEB) which was
established in 2004. As a result, MICE-related tourism revenue has grown considerably (Figure II-2-2-
32). With an annual budget quota equivalent to around 2 billion yen (2012) for MICE attraction, the
TCEB designs menus of financial support measures tailored to individual markets. For example,
concerning the Japanese market, the TCEB introduced a meeting bonus program, which provides
meeting incentive subsidies for groups of more than 200 people that stay in Thailand for at least three
nights. In addition to financial incentives, the TCEB provides a broad range of services, including airport
shuttle service, allocation of security guards for important persons from abroad, liaison with company
and government officials, assistance for event planning and arrangement of visits to industrial regions
in Thailand for business matching.
Figure II-2-2-32 Growth and breakdown of MICE-related tourism revenue
Source: Material provided at the Inbound MICE Practice Seminar and website of TCEB
Assisted by these initiatives, Thailand has significantly increased the number of tourists from
countries around the world (Figure II-2-2-33). Compared with Japan, Thailand is attracting many
tourists from Europe (Figure II-2-2-34). Tourists to Asia from Europe tend to have long stays because
of the geographical distance between the two regions (Figure II-2-2-35). As a result, Europe’s share in
the total number of days of overnight stay in Thailand is large (Figure II- 2-2-36). As tourists who have
464
long stays tend to contribute more to tourism consumption, Thailand’s success in attracting such tourists
is a factor behind the country’s growing tourism revenue.
Figure II-2-2-33 Changes in the number of foreign tourists to Thailand (2007-2015)
Source: “Visitor statistics 2015” (Department of Tourism of Thailand)
Figure II-2-2-34 Number of visitors to Thailand and Japan by nationality
Note 1: The home country of tourists is based on the country of residence for Thailand and nationality
for Japan. The data is as of 2014.
Note 2: Due to data restrictions, figures for Thailand also include visitors on a business trip.
Source: JNTO and Department of Tourism of Thailand
2,481
1,088
0
500
1000
1500
2000
2500
Thailand Japan
Others Oceania Africa Americas Europe Asia
(10,000 people)
465
Figure II-2-2-35 Average length of tourists’ stay in Thailand by country of residence
Source: Material by the Department of Tourism of Thailand
Figure II-2-2-36 Composition of tourists’ nationality in the number of tourists to Thailand and
the total number of days of stay (2014)
Source: Material by the Department of Tourism of Thailand
Here, we compare Japan and Thailand with respect to the tourism relationship with the United
Kingdom, the United States and China (Figure II-2-2-37). First, the value of per-capita consumption by
U.K and U.S. tourists in Japan per day is similar to the value of consumption in Thailand. However, as
the number of days of overnight stay and the number of tourists are higher in Thailand, overall tourism
revenue for the country is much larger than the revenue for Japan. In particular, tourism revenue from
U.K. tourists in Thailand is 7.5 times as large as the revenue in Japan. Moreover, not only long-distance
tourists from the United States and Europe but also Chinese tourists tend to have long stays in Thailand,
16.4
14.7
12.811.9
11.3
7.36.7
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
Europe Americas Oceania Middle East Africa South Asia East Asia
(Number of days)
0%
20%
40%
60%
80%
100%
Number of tourists Number of days of stay
Africa Middle East Oceania South Asia Americas Europe East Asia
466
and this is another factor behind Thailand’s large tourism revenue. As shown above, encouraging tourists
to have long stays, in addition to increasing the number of tourists, is an important factor for increasing
tourism revenue.
Figure II-2-2-37 Trends in tourists to Thailand (2014) (tourists to Japan = 1)
(UK tourists to Thailand)
(Chinese tourists to Thailand)
(US tourists to Thailand)
Note 1: 1 dollar = 105 yen
Note 2: Due to data restrictions, figures for Thailand include visitors on a business trip.
Source: World Bank, "Consumption Trend Survey for Foreigners Visiting Japan," World Tourism
Organization and Thai Department of Tourism
6.0 (870,000)
1.3 (17.1 nights) 1.0 (126 dollars)
7.5 (1.9 billion dollars)
Number of tourists Number of days of
stay per capita
Consumption per
capita per day
Tourism revenue
UK tourists to
Japan
2.6(4,630,000)
1.3 (7.9 nights)
0.6 (169 dollars)
2.1 (6.2 billion dollars)
Number of tourists Number of days of
stay per capita
Consumption per
capita per day
Tourism revenue
Chinese tourists to Japan
1.2 (730,000)1.4 (14.3 nights)
1.0 (153 dollars)
1.8 (1.6 billion dollars)
Number of tourists Number of days of
stay per capita
Consumption per
capita per day
Tourism revenue
US tourists to Japan
467
Column 11 Example of active regional tourism promotion initiatives in Japan
Fukuoka City (Fukuoka Prefecture)
—Fukuoka City, which is seeking to attract MICE, experienced an increase in the number of
international conferences hosted, with the number of large conferences in 2014 surpassing 300, the
second largest among Japanese locations. In 2016, Fukuoka City succeeded in attracting an
international conference of Lions Clubs, which will be attended by 35,000 participants.
—In order to promote MICE attraction, Fukuoka City established the Fukuoka Directive Council, which
operates five working groups concerning human resources, food, tourism, smart city, and urban
regeneration with MICE invitation as the main plank of activity. The Tourism Working Group is
developing one-stop functions for promoting MICE attraction. It is disseminating information
targeted at a variety of business operators, for example by holding seminars for restaurant operators
on the use of MICE.
—As a show of hospitality for participants in international conferences, Fukuoka City holds exchange
events using the local shopping streets exclusively for that purpose. Such events provide opportunities
for conference participants to enjoy the essence of Fukuoka through meals provided at street stalls
opened by local restaurants, the performance of music using the “shamisen” string instrument and the
“taiko” drum, and language support and guide services provided by volunteer staff members, for
example.
Niseko Town (Hokkaido)
—Niseko Town has prepared a brochure containing tourism information concerning Niseko and
distributed it to travel agencies in various countries.
—The brochure can be viewed via the Internet. In addition, newsletters containing up-to-date tourism
information concerning Niseko are distributed four times each year to 500 travel agencies in various
countries.
—The brochure and newsletters are available in English, Korea, Chinese and German, among other
languages, and photos and topics used in them are chosen in accordance with the needs of individual
markets (there are eight versions, intended for tourists from Oceania, tourists from China, tourists
from Hong Kong, individual tourists from the ROK, group tourists from the ROK, tourists from
Southeast Asia, tourists from Germany and tourists from the United Kingdom).
—Seminars concerning tourisms are regularly held for tourism business operators.
—Menus in restaurants in Niseko Town are translated into English and Chinese (in simplified or
traditional Chinese characters) (the translation rate is around 80% of the total). The town is promoting
multilingual labeling with respect to roads in the skiing slope area, transportation systems, hotels and
restaurants.
Takayama City (Gifu Prefecture)
—Takayama City’ website provides information in 11 languages, its pamphlets are available in nine
languages and guide signs are indicated in four languages.
—The city is using Facebook and Weibo to disseminate up-to-date information to foreigners.
—The city has dispatched personnel from a strategic perspective (To the Tokyo and Hong Kong offices
of Japan National Tourism Organization (JNTO), the Tokyo office of the Japan External Trade
468
Organization (JETRO) and the Paris office of the Council of Local Authorities for International
Relations.）
—The city has prepared a manual concerning hospitality for tourism business operators and distributed
it to boarding facilities, restaurants and other relevant business operators and provided training. In
addition, it provides subsidies for the installation of foreign-language guide boards within the facilities
of business operators and the preparation of foreign-language pamphlets.
5. Summary
The number of tourists to Japan has recently grown rapidly, with the annual number of foreign
visitors to Japan totaling around 20 million. On the other hand, in order to broaden the scope of Japan’s
tourist industry and ensure sustainable tourism consumption, it is necessary to increase tourists from
regions other than Asia, including the United States and Europe, and to develop the environment to take
advantage of consumption by wealthy tourists. The Council for the Development of a Tourism Vision
to Support the Future of Japan, chaired by Prime Minister Shinzo Abe, has adopted a new vision for the
future of Japan. It is important to increase the number of tourists to Japan and per-capita tourism
consumption by steadily implementing measures included in the Tourism Vision.
In the long term, it will be necessary to increase repeat visitors by encouraging foreign tourists to become
interested in Japanese culture. Further growth in tourism consumption can be expected in the long term
by encouraging tourists to stay in Japan for extended periods with an eye to possible purchase of villas,
for example.a