Who Are the Biggest Spenders in Japan?

Boasting an all-time record of 83.18 million overseas travelers in 2012 -- surging some 22.42% from 2011 -- Chinese travelers generated some $US102 billion in international tourism, thanks to a strong Chinese currency and relaxation of government restrictions on foreign travel.

The Chinese today are the top spenders followed by Germany and the U.S., (each generating about US$84 billion), according to the latest report by the United Nations World Tourism Organization (UNWTO). With the number of Chinese travelers to reach 100 million by 2015, spending worldwide is expected to climb even higher.

So, who were the top spenders in Japan in 2012? By country, China led the field with 268.8 billion yen, thanks to the 1,429,855 visitors who stayed an average 19.3 days in Japan. It was followed by Taiwan with 164.8 billion yen (1,466,688 visitors), South Korea with 146.6 billion yen (2,044,249) and the U.S. with 97.9 billion yen (717,372), according to the latest report by Japan Tourism Agency (JTA).

In all, foreign travelers rang up sales of 1.08 trillion yen to Japan’s economy last year, up 33.5% from that in 2011 but below the record-setting 1.14 trillion yen in 2010.

But when it comes to spending in Japan per person, China was only ranked third with 160,154 yen for each traveler. Leading the way was Australia with each visitor spending an average of 175,433 yen, during an average stay of 13.0 days, Despite Russia having generated only 50,244 arrivals into Japan in 2012, Russians ranked second, spending an average of 165,782 yen, a development that underscores their buying power, thanks to the rise of free enterprise, commerce and bigger disposal income among consumers in modern Russia.

Ranking fourth was France, with each traveler dishing out 155,858 yen. Following was India, which like Russia, sent some 69,097 visitors who spent an average of 150,182 yen, indicating the economic potential this market has for Japan.

The major source markets of Taiwan (85,266 yen) and South Korea (61,983 yen) spent below the overall average expenditure per person of 111,983 yen, partly due to the fact that many of them were repeat travelers to Japan who have learned to adjust their spending styles according to their purpose of each visit.

In a breakdown of their spending, foreign visitors devoted on average some 34.2% of their budget for accommodations, 20.5% for meals, 10.9% for domestic transportation, 2.7% on entertainment and 31.4% on shopping.

Shopping appears to be the major focus among Asian travelers as they spent more for shopping than for their accommodations. For example, Chinese spent some 51.2% of their budget for shopping (96,199 yen), the highest among all visitors to Japan.

Others showing high percentages for shopping after Chinese visitors were: Taiwan, 38.0% (42,754 yen); Hong Kong, 35.6% (48,355 yen); Thailand, 31.8% (40,492 yen); and Russia, 30.9% (57,220 yen). One reason for the high rates is the desire to buy authentic goods, including made-in-Japan products known for their high quality.

And when it came to accommodations, travelers from India ranked at the top, allowing for 52.5% (83,468 yen) of their budget for their stay in Japan. While 44% of their budget was for accommodations, Australians spent 86,661 yen, the highest in this category.

Ranking of Foreign Visitors to Japan by Spending Levels, 2012

How Bright Was Japan’s Golden Week?

Oahu Island (Honolulu in Hawaii) was ranked as the most popular destination when it came to the number of email consultations received at the booking website abroad.net for the just-completed Golden Week period between April 27 and May 6, 2013.

Golden Week in Japan is a string of national holidays combined with weekends that provides for long vacations for consumers, especially families who tend to adjust their travel plans according to their children's school holidays.

According to AB-ROAD Research in its latest Golden Week survey, Oahu's top ranking had a share of 5.6%, buoying it from the second-place it held in 2012 and displacing Paris from its top spot to third place. AB-ROAD said that the wide range of package tours with different lengths of duration for Hawaii travel helped prop up its ongoing popularity.

Unlike last year, the line up of the national holidays and weekends was divided by a three-day gap compared to just two in 2012, making it less convenient to take consecutive days of holidays, especially for long-haul travel to North America and Europe. The average overseas trip during Golden Week was 5.7 days in duration.

Ranking second was Taipei, Taiwan, with a share of 5.2%, jumping from fifth in 2012. With the weakening of the Japanese yen against the Korean won, Japanese consumers appeared to have opted for Taipei, which like Seoul, has a similar proximity from the major gateway of Tokyo.

AB-ROAD said that the average days of overseas travel this year was 5.7 days compared to 5.9 days in 2012. Still, popular among consumers were long-haul destinations such as Paris (3rd, 4.5% share), Bali, Indonesia (5th, 3.6%), Bangkok, Thailand (6th, 3.4%), Istanbul, Turkey (8th, 3.0%); and Rome, Italy (9th, 2.8%). Singapore, with the popularity of its two Integrated Resorts -- one each in Marina Bay and Sentosa Island -- ranked 10th with a 2.3% share.

the JTB Foundation estimated that the number of Japanese that headed overseas during the Golden Week period dropped 5.03% to 566,000, compared to a year ago, as fewer numbers chose the popular destinations of China (-18.75%), South Korea (-10.94%) and Hong Kong (-7.69%). With the inconvenient line up of holidays, more consumers opted for domestic travel, which grew 0.84% to 22.79 million, the biggest number ever in history. This was partly fueled by the rise of lower fares on offer by domestic low-cost carriers, which are making inroads in the market.

Among Asian destinations, Thailand showed a 6.25% rise to 34,000 travelers, according to JTBF's annual survey, with Singapore posting a 7.69% rise to 14,000. Taiwan, with 40,000 arrivals, had a 2.56% rise.

The resort destination of Hawaii boasted a 6.98% increase to 46,000 while the U.S. mainland garnered a 2.38% jump to 43,000 among North American destinations.

Europe showed no changes with 68,000 Japanese travelers, with Oceania tentatively recording 14,000 visitors, down 6.67% due to a 10% drop in visitors to Australia.

Golden Week Travel Trends by Major Regions, 2009～2013

Lawn Sakura: A View on the Ground

The centuries-old tradition of hanami or flower viewing of sakura or cherry blossoms may have ended in April in Metropolitan Tokyo but they are still in bloom in prefectures in the northern regions of Japan.

With the vast changes in the global climate, the time for flower viewing has changed year to year. But a weather bureau provides accurate forecast on a weekly basis by region when the blossoms will be in full bloom. The forecast also helps those planning parties or events around the blooming of the flowers.

Besides the cherry blossoms, also popular is the viewing of shiba sakura or lawn sakura that bloom after the cherry blossoms. They bloom from April to June, depending on the location. Originally from Western North America, the shiba sakura is part of the phlox subulata family and can be referred to as creeper plants due to their strength as ground cover.

In Japan, there are some 45 lawn sakura locations, many showing a wide range of colors from sakura pink, white, dark pink, mauve to gray, planted in unique patterns to show off a spectacular wave of colors.

Among the major shiba sakura areas in Japan are as follow:

- Takinoue Park in Taknouemachi in Hokkaido. It is the largest of its kind in Japan, spanning 100,000 square meters.

- Higashimokoto Shiba Sakura Park in Hokkaido. Because it is located on a hill, the park allows visitors to view the entire scenery from above; 80,000 square meters.

- Hitsuji Yama Park in Chichibu City in Saitama. About a two-hour train ride from Ikebukuro station in Tokyo, the park spans 16,500 square meters.

- The Treasure Garden in Tatebayashi in Gunma Prefecture stretches 80,000 square meters.

- Fuji Shibazakura Festival in Fujikawaguchiko in Yamanashi Prefecture is one of the most popular parks. With Japan's tallest mountain as its backdrop, the biggest lawn sakura park in the Tokyo Metropolitan area provides the perfect setting for photographers to combine the colors of the ground with one of the most famous icons in Japan.

Ishigaki Island Now Closer Than Ever

The March 7 opening of the New lshigaki Airport in Okinawa's remote island of Ishigaki ushered in a new era for tourism for the domestic and international tourism industries in Japan, with arrivals to the island to grow to 1 million by 2020.

All Nippon Airways (NH) inaugurated daily flights from Osaka (March 7) and Haneda Airport (March 29) while Japan Transocean Air -- a subsidiary of Japan Airlines (JL) -- began two flights a day to ramp up access to the island that attracted 31,801 foreign visitors in 2011 (latest figure available). The city of Ishigaki said the island, located some 410 kilometers from the main island of Okinawa, handled a total of 700,000 arrivals in 2012, with the number to reach 1 million by 2020.

Peach Aviation, meanwhile, will begin services from June 14 from Kansai Airport. Korean Air and Asian Air plans to introduce charters linking Ishigaki with South Korea. And Taiwan-based Mandarin Airlines will fly charters between May 15 and June 13 on the Taoyan (Taiwan)-Ishigaki route, due to its proximity to Ishigaki, taking about 30 minutes of flying time.

Ishigaki Island serves as the hub of the Yaeyama Islands of Taketomi, Kuro, Hateruma, Iriomote, Yonaguni, Hatoma and Kohama, known for their nature, beaches, diving as well as local cuisine, including the famous high-quality Ishigaki beef. All islands are connected by ferry services from Ishigaki Island, which will welcome in 2014 the port of call by the 2,022-passenger Sun Princess (under Princess Cruises' Japan Home Port program calling 19 ports in Japan).

According to research by the Japan National Tourism Organization (JNTO), while Taiwan makes up the largest share (25.5%) of foreign visitors to Okinawa prefecture, it is those from the U.S. that generate the biggest share heading to the Yaeyama Islands, including Ishigaki, at 24.1%. Visitors from France are next with a 10.3%, followed by Germany, Spain and Italy, all with an equal share of 6.9%. The U.K. and Canada, both at 3.4%, were next. One reason for the high percentage of travelers from long-haul markets was the connection from Narita Airport (86.2%) to domestic flights serving Tokyo. Statistics from 2010 are used since 2011 figures were skewed by the impact of the double disasters (earthquake and tsunami) on inbound tourism.

One of the top reasons for visiting Okinawa, including Ishigaki and the Yaeyama Islands, among foreign visitors is the subtropical natural beauty (from beaches to mangroves) and the local flavor found there, at 70.3%, the highest share among all regions in Japan. Another reason is the local food (67.3%), one of the factors known for contributing to Okinawans having the longest life-span expectancy in the world. And the destination's history and traditional culture (55.3%) is another reason for visiting Okinawa.

JATA TABIHAKU Official Website Opens

The official site of JATA TABIHAKU 2013 opens May 15, 2013, offering a wide range of information on the biggest travel show in Japan, including registration.In the English language, the website can be accessed at http://www.b.tabihaku.jp/en/

Asia Most Represented at TABIHAKU 2012

Tabihaku welcomed an all-time record of 125,989 visitors in 2012, up from the 117,236 in 2011, with 49,485 from the travel industry (including press) and 76,504 consumers.

Also, some 156 countries and regions participated, represented by 708 companies and organization for a total of 1,093 booths, up from the 986 registered in 2011.

But which regions had the biggest share of representation? Asia, due to its proximity to Japan, commanded a 22% share, followed by those from Japan at 12%.

Despite being far away, those from Europe commanded an 11% share, underscoring the importance of the Japanese market. North America, including Canada and Mexico, followed with 6% followed by Central and South America at 4%. Africa had a 3% share while the Middle East boasted a 1% share.

When it comes to purpose of visit, market research was the overwhelming reason at 72% among the travel trade (including press), followed by meeting with sellers and exchanging information at 15% followed by networking at 7%.

Did You Know?

-- Malaysia was ranked as the top destination that Japanese want to visit for their long-stay choice in 2012, extending its lead for the seventh straight year since 2004, according to the Japan Long Stay Foundation. In its annual survey, Malaysia garnered 2,047 points compared to second-ranked Thailand with 1,177. Third was Hawaii, 936; followed by Australia with 754 points. New Zealand rounded out the top five with 544 points. The Japan Long Stay Foundation said that strong interest in language learning helped boost the rankings for New Zealand (from 6th to 5th), the Philippines (from 8th to 7th) and Singapore (from 10th to 8th). It added that English-language destinations such as Australia, Hawaii, New Zealand and Canada (6th, 473 points) continue to be popular among long-stay participants. Others in the top 10 included Indonesia (9th, 347 points) and Taiwan (10th, 299 points).

-- The most widely used smart-phone applications among Japanese consumers when traveling overseas by category are for navigating the streets including maps to find locations overseas, according to Ranking.Goo.ne.jp. Ranked second are those for translation services, third are for applications that provide information on what's located nearby. In fourth are for users who want to know the exchange rates while fifth are for applications providing weather information in global locations. Ranking next is for the category for applications providing word-of-month information for travelers in specific locations, such as where to experience the best pasta in a small town.

-- The average cost of having a wedding reception overseas by Japanese couples is 1.59 million yen in 2012, according to Zexy magazine, which annually surveys couples on their weddings. Of course, the costs vary depending on the location. For example, the average for a reception in Hawaii is 1.69 million yen while that in Europe is 1.51 million yen. In Guam, the average is 1.35 million yen while that in Asia, including beach resorts, is 1.36 million yen.

-- Tokyo Disneyland marked its 30th anniversary on April 15. As part of its celebration, the theme park launched its "Happiness Year" celebration running through March 20, 2014. The 51-hectare park drew 27.5 million visitors in fiscal year 2012, topping the previous record of 27.22 million four years earlier. The 2012 tally was up 8.5% from the previous year.

-- The ongoing depreciation of the Japanese yen against global currencies over the past six months has had little or no impact on the decision-making of travelers, according to survey findings by the JTB Foundation released in late March. JTBF said that in March 2012, the exchange rate of the yen against the U.S. dollar sat at 82.40 yen (compared to 81.61 yen in 2011), helping to spur more consumers to head overseas, and ultimately led to a record 18,490,638 count of overseas travelers. With the exchange rate at the end of March 2013 falling to 94.60, a loss of 12.8%, some 68% of 1,260 consumers responding to the online survey, said that the depreciation has had no effect on their travel plans “at the current exchange rate.” The share was much higher among consumers with no travel experience, climbing to 81.6%.

Calendar of Events

May 18 to 19, 2013.Tokyo.Design Festa is a two-day event showcasing exhibitions of original artwork, with marketplaces and performances on schedule. Held at Tokyo Big Sight West Halls, the event will feature 3,400 booths and 11,000 exhibitors.
http://designfesta.com/en/about/

May 17 to 19, 2013. Tokyo.The Sanja Matsuri in Asakusa, is one of the largest festivals centering on portable shrines (mitsukoshi) held in Asakusa, a quarter where traditional houses and streets can still be found. Several dozens of the shrines are carried on the shoulders of men then lifted high above through the streets of the town. The festival also includes floats carrying musicians, beating drums, and people dressed in traditional artisan wear. It attracts thousands of visitors each year.
http://www.jnto.go.jp/eng/location/spot/festival/asakusasanja.html

June 14, 2013. Tokyo.The 7th annual Japan Sake Fair, in Ikebukuro Sunshine City, Cultural Center's Exhibition Hall (4F), is the largest sake event in Japan, including exhibitions and seminars and tasting, from 11 a.m. to 8 p.m. It will showcase sake from each prefectural sake brewers association. In 2012, the event welcomed 5,500 visitors. http://www.japansake.or.jp/sake/fair/

Spring, Summer, Autumn 2013. Seto Inland Sea Islands. The Setouchi Triennale 2013 is a major contemporary art festival held in four islands in the Seto inland sea (Shamijima, Honjima, Awashima and Ibukijima) during three seasons, allowing visitors to experience various contemporary artwork during the different seasons of Japan. Visitors will also experience the slower place of life in the islands and the beauty that it offer. Between seasons, some art sites will remain open. http://setouchi-artfest.jp/en/

Spring: March 20-April 21, 2013
Summer: July 20-Sept. 1, 2013
Autumn: Oct. 5-Nov. 4, 2013

Japan by Numbers

The Japan Association of Travel Agents’ diffusion index (DI) represents business sentiment of JATA-member agencies, based on their responses regarding current and future business climate, with 100 as good and -100 as poor. The latest survey results (April to June 2013) represent a 53.20% response rate among 592 registered companies.