J A PA N Unveiling Japan

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J A PA N Unveiling Japan Tackling stereotypes in the tourism sector Tourism in Japan is flourishing over 24 million people visited the country last year, representing a 20 percent jump over 2015.

And growth shows no signs of slowing down. Just this past January, the country set a record for the highest number of visitors for that month in history, up 24 percent over January, 2016.

1 J A PA N Unveiling Japan Tackling stereotypes in the tourism sector Tourism in Japan is flourishing over 24 million people visited the country last year, representing a 20 percent jump over This remarkable increase is not uncommon, but rather another spike in a long series. Visitors to the country more than doubled between 2011 and 2014, and have doubled again since then. And growth shows no signs of slowing down. Just this past January, the country set a record for the highest number of visitors for that month in history, up 24 percent over January, These fast rising trends are by no means a fluke. They are the results of a solid strategy in place as far back as 2008, when the government set the goal of increasing tourism to 20 million annual visitors by Having met that four years ahead of schedule, Japan now hopes to attract 40 million by that same year, and increase tourismrelated revenue to $76 billion (up from last year s $33 billion), and why not? Doubling figures seems to be very attainable in this tourism sector. Indeed, it would very much appear as if Japan is headed into the elite category of the world s top tourist nations. And this is the great surprise. Japan, a country that was closed off for many years, insular and inward looking, is overcoming obstacles that many other countries never have to face in growing their tourism industries. Suffering from the Galapagos effect, a tunnel of ethnocentricity, Japan has been famously exposure-shy and secluded. The world, for its part, came to believe the country was too far away, too poorly connected, too expensive, unwelcoming and indecipherable. This makes the incredible success Japan has achieved even more mind boggling. Japan is, in a nutshell, succeeding in overcoming its stereotypes. Japan is currently living in a very exciting time. For the first time in history, our country is truly trying to open itself to the world. Japan is known for its expertise in manufacturing, represented by globally recognized brands such as Toyota or Panasonic. Previously, tourism was still considered to be a sub-sector, with a marginal impact on the overall economy. However, Prime Minister Abe s administration has made it a core pillar for economic growth, transforming Japan into a touristic destination, says Ryoichi Matsuyama, president of the Japan National Tourism Organization (JNTO). This is great luck for the rest of us, who have been denied the experience of the rich Japanese culture, its tremendous cuisine and stunning natural beauty for far too long. A hidden diamond, one boasting no less than 17 UNESCO World Heritage Sites, along with hundreds of Michelin-starred restaurants, four vibrant tourism seasons and a diversity of natural landscapes, has been put on view. From Japanese characters to traditional ceremonies, we have a great culture, filled with wonders that are yet to be discovered. This cultural richness only lacks a narrative, a voice to get its story out there, says Mr. Matsuyama. JNTO attributed last year s recordbreaking success to efforts since 2013 aimed at creating a more tourism friendly environment, including the expansion of duty-free items and relaxed visa requirements. The private sector also came on board, increasing English-language options both in the street and online, while leisure industry players morphed their roles into full-on travel companions. These strategies boosted Japan s ranking in the World Economic Forum s Travel and Tourism Competitiveness Index to 9th, making it the most tourist-friendly country in Asia, up from 22nd in Now, focusing on the next goals in time for the Tokyo 2020 Summer Olympics, the government is unleashing a new wave of initiatives, including upgrades to airports and seaports, as well as improved access to national parks and cultural attractions. Last year, Prime Minister Abe signed a $61 billion infrastructure package to improve connectivity throughout the country, and plans are also underway to improve digital infrastructure through extending universal WiFi coverage and further improving multilingual information and services through ATMs, websites and other digital platforms. Ryoichi Matsuyama, President, Japan National Tourism Organization (JNTO) Mr. Matsuyama says the $76 billion target in tourism revenue is the first time in history that the Japanese government has put a dollar figure on inbound tourism. To achieve that, there are three major strategies. The first is to enhance regional tourism and promote less well known attractions. Secondly, we want to create a unified voice for the tourism sector to have more weight in the political and economic arena. The tourism industry in Japan has been marginalized for too long. For example, when compared to the construction industry, our sector generates a similar amount of money, but that sector has a clear political force, a voice that tourism has not had, he says. Thirdly, we want to create a foreigner-friendly environment. For example, we have pushed for the installation of WiFi connection around the country to allow all tourists to be connected. Setting up these goals is crucial to the success of our industry. Japanese people are like that, once there are common goals and targets implemented, we become willing to work relentlessly in order to achieve them. I am very optimistic for the future.

A land of surprises Discovering the hidden attractions in Japan, from ancient shrines to amusement parks Japan is far more than Mount Fuji and Tokyo, but according to a 2016 McKinsey report, the vast

2 A land of surprises Discovering the hidden attractions in Japan, from ancient shrines to amusement parks Japan is far more than Mount Fuji and Tokyo, but according to a 2016 McKinsey report, the vast majority of Japanese tourism attractions are relatively unknown to the world. The Great Buddha of Kamakura, the Todai temple of Nara, the Toshogu Shrine of Nikko, Ise-jingu Shrine, Shiretoko National Park the list of attractions in which awareness rated under 10 percent of those polled was too long. Yet these cultural attractions have great appeal. Kamakura s Great Buddha, a monumental outdoor bronze statue reaching some 13 meters high, is the second largest Buddha in Japan, surpassed only by that at Todai. The Kumano Nachi Shrine, a few kilometres from the hot springs resort of Katsuura, on the lush southern tip of the Kii Peninsula, is part of a large complex of neighboring religious sites that exemplify the fusion of Buddhist and Shinto influences. Here, in the verdant surroundings, visitors can see the tallest waterfalls in Japan. Ise-jingu in Mie Prefecture contains 125 shrines and is roughly the same size as Paris. More than 1,500 rituals are performed there yearly to pray for the Imperial family and the peace of the nation. The inner shrine at Ise, established more than 2,000 years ago, is considered Japan s most sacred shrine. These are just a few examples of Japan s immense, and mostly unexplored, offer. Aya Aso, President and CEO of Agora Hospitalities, says, While Kimonos and Mount Fuji are well known symbols of the country, they do not depict Japan s full cultural diversity. Tourists usually visit Tokyo and Kyoto, and then leave. To further enhance our country s attractiveness, we must promote our diversity to its fullness. Hiroshi Mizohata, Commissioner of the Japan Tourism Agency, agrees. While Americans and Europeans are aware of the major attractions of Japan, they quite often do not have a complete picture of the country. They are not aware of its diversity, he says. This lack of awareness also spills over into Japan s recreational offer. Japan offers some of the best powder skiing in the world, for example, with an average of 10 to 18 meters of snow per season at most resorts, but it is a destination that flies under the radar of most international skiers. This is slowly beginning to change, says Shuhei Suzuki, CEO of Nippon Ski Resort Development Company, in Hakuba, a resort in the Japanese Alps near Nagano. Hakuba has the second largest contingent of foreign skiers in Japan, but it has yet to reach its full potential. But year after year, its reputation as a destination with reliable deep powder snow and Japanese traditional culture is increasing, he observes. In similar fashion, many visitors overlook Japan s wonderful parks, where true gems of Japanese culture can be found hidden away. The country s oldest park, Asakusa Hanayashiki, in Tokyo s lively Asakusa district, has been operating since 1853, when it opened as a flower park for the visit of the Commodore of the U.S. Navy, Matthew Calbraith Perry. Today, it offers a full range of attractions and eateries, along with shops boasting vintage souvenirs. It also has Ninja training and full kimono and tea ceremony experiences at more accessible prices than many of the larger parks. Asakusa Hanayashiki is not just an amusement park; we are not fancy like Disney Land and we do not aim to be so. What we instead want to emphasize to our visitors is the culture and the long history of the park, says park manager Hirota Akihito, adding that Asakusa Hanayashiki collaborates with the Asakusa district through carnivals and festivals to create a multiplier effect. Starting in December 2016, we established a new joint activity where we offer Japanese Hagoita classes. Hosting these events collaboratively and offering free entrance to the tourists in the area are some of the efforts we are focusing on. We are also constructing a multi-purpose hall to be opened in June, 2018, which will offer more Cultural exchange between countries is like an international marriage. It is about exchanging values and understanding different cultures Ryoichi Yuki, President and CEO, Edo Wonderland cultural events such as the Geisha show and the Tea Ceremony. Edo Wonderland in Nikko is another park with an authentic cultural offer. Based around the Edo Era ( ), the 50-acre park is a replica of a small Edo-style town, replete with forested areas, shops, small eateries, theaters, museums and exhibitions, with ninja staging mock fights and geisha parading through the streets. Ryoichi Yuki, park CEO and president, says, People come here to understand the Edo Period, and the history of Japan. Tokyo was Edo so to know our culture, one must get to know the Edo Era, and it has been maintained here in a very authentic way. Mr. Yuki says he hopes to attract more American visitors in the future. Cultural exchange between countries is like an international marriage. It is about exchanging values and understanding different cultures and how we can comprehend each other. As a Japanese person, I want to support the way that Japan is opening to the world. I want to be part of the transformation. #TheWorldfolio #JapanTheWorldfolio PRODUCED BY GLOBUS VISION José Antonio Llamas Project Director Antoine Azoulay Editorial Director Aline Ouaknine Project Coordinator Alexis Amitrano Business Analyst Louise Grankvist Project Director Yoshie Isomura Project Assistant Gemma Gutierrez Regional Director

Japan opens up to the world Improving technology and infrastructure makes Japan more welcoming to visitors than ever before A nation known for its beautiful traditions and authentic craftsmanship,

3 Japan opens up to the world Improving technology and infrastructure makes Japan more welcoming to visitors than ever before A nation known for its beautiful traditions and authentic craftsmanship, Japan s image has remained rather unchanged on a global platform as economic challenges shape the nation s culture and outward appearances. From the north to the south of Japan, tourists have the possibility to enjoy a multitude of varying landscapes and changing weather. From the beach to the mountains, you can find everything in Japan, says Commissioner Hiroshi Mizohata of the Japan Tourism Agency (JTA). We have seen a 20-percentplus yearly increase in tourism, followed by a clear growth pattern in expenditure and consumption, says Mr. Mizohata. At present, almost 80 percent of visitors to the country are from Asia, but these guests spend less money and stay a shorter amount of time so, as the tourism industry grows, a focus to accommodate our country s services to attract new visitors, such as Europeans and Americans is crucial to increasing spending by guests, he says. Currently, foreign guests can use credit and bank cards issued overseas to make cash advances in yen at over 48,000 of the 190,000 ATMs Japan has to offer. By the time the Olympics come to pass, that number is expected to rise to 80,000. Things have begun to change as Abenomics continues to make tourism a focal point in boosting the economy. In 2016, the number of overseas visitors rose 21.8 percent to million, showing that Japan is well on its way to reaching the desired 40 million tourists by In the past, travel to rural destinations has been a struggle, but the Prime Minister s signing of a $61 billion project to connect better infra- structure is opening up more opportunities to visit unique places. Authorities like the JTA know that it is much easier to travel in Japan than tourists perceive. Mr. Mizohata says, We are currently enhancing our digital infrastructure in order to make our country more visitor-friendly. As part of the effort, we will facilitate free Wi-Fi connections nationwide while enhancing multi-lingual installments, he says. Public and private sector companies are both engaged in the effort to combat the stereotypes of difficult travel throughout Japan. NAVITIME has created a multimodal travel app that can help tourists navigate the sometimes-complex transportation routes of Japan with enhanced GPS in four languages. CEO Dr. Keisuke Onishi describes the service like this: For example, our system will tell the user by au- dio which exact exit to use when leaving the metro, and instead of simply suggesting where to turn, it will also inform about what different facilities are surrounding. This helps the user to easily navigate and find the closest police station, coffee shop, or post office. Use of the app is encouraged by its convenient availability. Dr. Onishi says, Currently apps show around 50,000 free Wi-Fi spots across Japan. Most users download the app before they enter the plane to Japan, and since the Wi-Fi spot search is available even when you are offline, users can immediately search for Wi-Fi spots when they arrive and get connected. With a focus on tourism and technology like this available, travelers have an easier time than ever before in finding where and how to get to diverse and interesting destinations in Japan.

Off the beaten track Reaching regional Japan brings unique experiences for tourists As for the financial barriers, our main objective is to enable the use of all credit cards around the country.

With our navigations app, we support tourists with the information needed in their own language while traveling through Japan Dr.

Kijima, President, JR-West Ask global citizens where they want to visit in Japan and you may be surprised to find that almost all of them have the same answers: big cities.

4 Off the beaten track Reaching regional Japan brings unique experiences for tourists As for the financial barriers, our main objective is to enable the use of all credit cards around the country... to facilitate the tourist influx in general Ichiro Hamakawa, President and Chief Executive Officer, JCB Co. With our navigations app, we support tourists with the information needed in their own language while traveling through Japan Dr. Keisuke Onishi, CEO, NAVITIME It is necessary to promote the local towns and cities in Western Japan such as Kanazawa, which is fundamentally different from the beaten tracks of Tokyo or Kyoto Tatsuo Kijima, President, JR-West Ask global citizens where they want to visit in Japan and you may be surprised to find that almost all of them have the same answers: big cities. Though Japan has many diverse places to experience, a whopping 48 percent of all tourist visits are in and around Tokyo, Osaka, and Kyoto. The prospects available in the major urban areas have caused a population exodus from the rural regions as Japanese residents flock to job opportunities. Since 2014, Prime Minister Shinzo Abe has made regional revitalization a key component to revamping the economy. Technologically progressive companies like travel app developer NAVITIME work to promote the lesser-known areas of Japan. CEO Dr. Keisuke Onishi says, In rural areas of Japan, most signs and information in the train stations or on roads are not multilingual, as they are in the larger cities. With our navigation app, we support tourists with the information needed in their own language while traveling through Japan. Expanding on the idea of travel ease and encouraging visitors to take in smaller, local sites is part of the Abenomics effort that companies like the West Japan Railway Company (JR West) need to stimulate business. President of JR West Tatsuo Kijima says, It is necessary to promote the local towns and cities in Western Japan such as Kanazawa, which is fundamentally different from the beaten tracks of Tokyo or Kyoto. Many tourists may have the notion that getting to these rural areas is difficult or expensive, but JR West offers a Japan Rail Pass that covers all regions. Mr. Kijima explains, During one week, a visitor would be able to visit Kansai, Hiroshima, and Miyajima as a package. Packages that are marketed to Western tourists are becoming a more viable option to visitors like Americans and Europeans who tend to have a higher interest in traditional and historical Japanese culture. The focus has been on the large cities for so long that, like Dr. Onishi says, Another point is that many municipalities are trying to attract foreign tourists, but they may not know what attraction they can offer that will be of interest to the tourist. The Gifu region strives to conquer this challenge from both a business and touristic outlook. Eager to show the potential of the most centrally located city in Japan, business leaders like Mr. Takashi Tsuchiya of Ogaki Kyoritsu Bank (OKB) offer insight on the future development of the region. Gifu has a preferable location at the geographical center of Japan, which is something we are very proud of. Gifu is also known as the manufacturing Mecca of Japan; we have an abundant water resource and the transportation services are very well developed. This region has a lot to offer foreign and local companies, he says. With the development of additional infrastructure and more promotion of the rural cities, there are still some concerns about tourist spending in the regional areas. Mr. Ichiro Proudly Sponsored By: Gifu has a preferable location at the geographical center of Japan, which is something we are very proud of Takashi Tsuchiya, President, Ogaki Kyoritsu Bank Hamakawa of the credit card company JCB Co. is optimistic that conditions will continue to improve for travelers. He says, As for the financial barriers, our main objective is to enable the use of all credit cards around the country. The combination of all of these developments are expected to facilitate the tourist influx in general says Mr. Hamakawa. The beauty of tropical beaches in Okinawa or fresh snow in Hokkaido simply offers an enriching cultural experience unlike their larger counterparts. As Mr. Tsuchiya of OKB states, All regions in Japan, not only ours, are welcoming the reforms and looking forward to the results.

Rail firms look to boost regional tourism Train operators key to Japan s tourism goals An outstanding safety, reliability and performance record has made Japan s high-speed Shinkansen rail network an

5 Rail firms look to boost regional tourism Train operators key to Japan s tourism goals An outstanding safety, reliability and performance record has made Japan s high-speed Shinkansen rail network an international symbol of its innovation, precision and technological ambition since it was established in The network is operated by five Japan Railway Group companies, one of which is West Japan Railway Group (JR-West Group). The JR-West railway network extends over a total distance of 5,007 kilometers, covering 18 prefectures in Western Honshu, Japan s main island, and carrying 1.8 billion passengers per year. Our Sanyo Shinkansen line ranges from Shin-Osaka to Hakata, but we also have a direct connection with Tokaido (Tokyo to Osaka) and Kyushu (Hakata to Kagoshima) Shinkansen with the high-speed rail, says President of JR-West, Mr. Tatsuo Kijima. Like all of Japan s railway companies, JR-West is integral to the country s efforts to expand the tourism industry. Facing a declining and aging population, Japan is banking on increasing tourist numbers to make up for falling local demand for goods and services, including rail services. Due to the demographic challenges of an ageing and declining population, I believe that the market for railwaybased business will stagnate in the long term. Therefore, inbound tourists are indispensable for our growth strategy, adds Mr. Kijima. Almost half of the millions of visitors that visit the country each year tend to limit their stay to Japan s main island, Honshu, concentrating around the country s three most popular destinations, the cities of Tokyo, Kyoto and Osaka. Boosting tourism in less visited parts across the nation is seen as vital to stimulate regional growth. JR-West therefore is not only carrying passengers in Western Honshu, but also plays an important role as a regional ambassador and promoter, opening up more of Japan s less beaten track to visitors. It is necessary to promote the local towns and cities in Western Japan such as Kanazawa, which is fundamentally different from Tokyo or Kyoto. We want to establish appealing tourist trains and an experience that allows the customer to travel around quickly. We would like to be a company that provides a total network that is useful for customers within the western area. For railway users, there is a pass called Japan Rail Pass that covers all the regions, but we also have the West Rail Pass that can be utilized in the western areas. When visitors come to the region, I would like them to visit the Hokuriku, San in, and Chugoku regions with our rail pass. The Kanazawa and Hokuriku regions have historically been popular with visitors due to their richness in nature and food. Most people used to go there by airplane, but with the opening of the direct Shinkansen, we have seen a complete reverse situation with 80 percent now choosing Shinkansen over airplane. We want to establish appealing tourist trains and an experience that allows the customer to travel around quickly Tatsuo Kijima, President, JR-West

Japan as a Tourist Destination -New Tourism Agency Targets 20 Million Foreign Visitors to Japan-

Press Briefing Summary Japan as a Tourist Destination-New Tourism Agency Targets 20 Million Foreign Visitors- Japan as a Tourist Destination -New Tourism Agency Targets 20 Million Foreign Visitors to Japan-