Global Tourism Summit 2017 Japan Market
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1 Global Tourism Summit 2017 Japan Market Eric Takahata Managing Director Hawai i Tourism Japan #GTA2017
2 Agenda Economic environment Political environment/global landscape Industry trends Key opportunities 2018 Brand Management Plan highlights Takeaways #GTA2017
3 Economic environment 4
4 Economic environment Japan s moderate recovery Japan s GDP 2.8% Unemployment rate 112 USD exchange rate 5
5 Japan visitor highlights (2017 July YTD) 873,928 visitors arrivals Economic environment 160, , , ,000 80,000 60,000 7% increase from ,000 20,000 0 Jan Feb Mar Apr May Jun Jul
6 Billions Japan visitor highlights (2017 July YTD) $1.25 billion total expenditures Economic environment $1.30 $1.25 $1.25 $1.20 $1.15 $1.10 $ % increase from 2016 $
7 Political environment / global landscape #GTS
8 Political environment / global landscape Japanese government work reform North Korea missile threat Political turmoil and the uncertain future of Abenomics International terrorism 9
9 Top 5 industry trends #GTS
10 Industry trends 1 Booming air access Direct flights to Kona Additional charter flights Entrance of low cost carriers Entrance of Airbus A380 #GTS
11 Industry trends ,000,000 20,000,000 15,000,000 Japan s focus on inbound travel Historical data of Japanese inbound and outbound INTERNATIONAL VISITORS: 24,040,000 JAPANESE TOURISTS: 17,120,000 10,000,000 5,000,
12 Industry trends 3 Government anniversary celebrations Anniversary campaigns to stimulate travel between foreign countries 13
13 Industry trends 4 Consumers shift to value rich experiences #GTS
14 Industry trends 5 Shift to luxury/affluent travelers 1.21M HOUSEHOLDS WEALTHY/SUPER WEALTHY 30,000 INDIVIDUALS HAVE NET WORTH IN EXCESS OF $10M Wealthy class = Income/assets > $1 million Super wealthy class = Income/assets > $5 million 15
15 Key opportunities #GTS
16 Key opportunities 1 Increased air access allows for focus on regional cities 68% of flights between Japan and Hawai i are operated out of Kanto (Tokyo area) Focus on regional cities to target first time visitors Neighbor island distribution (Kona direct flights) 17
17 2 Japanese government work reforms to improve work-life balance Premium Friday (Feb 2017) + Kid s Week (Apr 2018) + Reduced overtime (est. 2019) + Equal pay for equal work (est. 2019) + Paid holidays (est. 2020) = Key opportunities More travelers, more spending
18 Key opportunities More travelers, more spending = More competing destinations Australia Canada Okinawa Hong Kong South East Asia #GTS
19 Key opportunities 3 Cooperative partnerships Locomoco All Stars Campaign Hawaiian Springs Campaign with Yomiuri Giants Launch of Skylark Group s La Ohana Hawaiian restaurant 20 20
20 Key opportunities 4 Capitalize on new technology YOUNG TRAVELERS COUPLES Build on the platform already developed (CRM, CMS, new promotional videos) Maximize technology to reach targeted audiences Target messaging to specific segments to achieve marketing efficiency FRIENDS ACTIVE SENIORS REPEAT TRAVELER S GENERATIONAL FAMILIES LUXURY FIRST TIME TRAVELER S 22
21 Key opportunities th anniversary of Japanese immigrants to Hawai i in 2018 Two-way promotional opportunity Further strengthen the relationship between Hawai i and Japan 23
22 2018 Brand Management Plan highlights 24
23 Gohoubi Reward Hawai i Campaign Target multi-generational families, active seniors, couples, friends Partner with all major agencies to create Gohoubi Hawai i packages Collaborate with industry partners to expand reach throughout Japan 25
24 Neighbor Island Distribution Campaign 26
25 Millennial/Luxury/Romance Campaigns Create virtual reality experiences and promote through SNS for millennials Collaborate with luxury organizations Capitalize on Hawai i s 67% market share of Japan s wedding market 28
26 Hokkaido - 3 Aloha Program 38 satellite offices Over 22,000 members and 14,000 specialists Aloha Program at Hawai i Expo 2017 Kansai - 5 Kanto - 19 Chubu - 6 Kyushu
27 Regional Areas Campaign Increase number of Japanese passport holders Expand regional reach through Aloha Program Feature Hawai i Expo in regional cities 30
28 MCI 5 target segments Incentives Education Entertainment Sports Attendance Building 32 31
29 MCI opportunities Tokyo Olympics 2020 (limited space in Japan for groups) Relationship between Hawai i and Japan Edu-Tourism Medical tourism 32
30 Takeaways #GTS
31 Takeaways 1 Loyalty of Japanese visitors towards Hawai i is unprecedented Number of U.S. visitors to Japan totaled 1.2 million in M Visitors 34
32 Takeaways 1 Loyalty of Japanese visitors towards Hawai i is unprecedented Number of U.S. visitors to Japan totaled 1.2 million in 2016 Number of Japanese visitors to Hawai i totaled 1.5 million in M visitors (16.85%) 1.2M visitors 34
33 Takeaways 2 Maintaining our strong market share is vital for our state - $1.25 billion July YTD $ $ $ $ $ $ $ $ $ $ $ $ HAWAI I 35
34 Takeaways Beware of the onslaught of competing 2 destinations $ $ $ HAWAI I Australia Canada Okinawa Hong Kong South East Asia 36
35 1,241,805 1,465,654 1,518,517 1,510,938 1,482,304 1,488, % 7.9% 8.6% 8.9% 9.1% 8.7% Takeaways Despite the challenges associated with 3 being a mature market, Hawai i is wellpositioned for future success Japan arrivals to Hawai i Japan s outbound market share: Hawai i 37
36 Mahalo Eric Takahata Managing Director Hawai i Tourism Japan #GTS2017
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