Global Tourism Summit 2017 Japan Market Eric Takahata Managing Director Hawai i Tourism Japan #GTA2017
Agenda Economic environment Political environment/global landscape Industry trends Key opportunities 2018 Brand Management Plan highlights Takeaways #GTA2017
Economic environment 4
Economic environment Japan s moderate recovery 522 527 531 2016 2017 2018 Japan s GDP 2.8% Unemployment rate 112 USD exchange rate 5
Japan visitor highlights (2017 July YTD) 873,928 visitors arrivals Economic environment 160,000 140,000 120,000 100,000 80,000 60,000 7% increase from 2016 40,000 20,000 0 Jan Feb Mar Apr May Jun Jul 2016 2017 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 $1.12 12.3% increase from 2016 $1.05 2016 2017 7
Political environment / global landscape #GTS2017 7 8
Political environment / global landscape Japanese government work reform North Korea missile threat Political turmoil and the uncertain future of Abenomics International terrorism 9
Top 5 industry trends #GTS2017 9 10
Industry trends 1 Booming air access Direct flights to Kona Additional charter flights Entrance of low cost carriers Entrance of Airbus A380 #GTS2017 10
Industry trends 2 2 25,000,000 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 5,000,000 1965 1970 1980 1990 2000 2010 2016 12
Industry trends 3 Government anniversary celebrations Anniversary campaigns to stimulate travel between foreign countries 13
Industry trends 4 Consumers shift to value rich experiences #GTS2017 13
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
Key opportunities #GTS2017 15 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
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
Key opportunities More travelers, more spending = More competing destinations Australia Canada Okinawa Hong Kong South East Asia #GTS2017 18
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
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
Key opportunities 5 150 th anniversary of Japanese immigrants to Hawai i in 2018 Two-way promotional opportunity Further strengthen the relationship between Hawai i and Japan 23
2018 Brand Management Plan highlights 24
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
Neighbor Island Distribution Campaign 26
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
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 - 5 29
Regional Areas Campaign Increase number of Japanese passport holders Expand regional reach through Aloha Program Feature Hawai i Expo in regional cities 30
MCI 5 target segments Incentives Education Entertainment Sports Attendance Building 32 31
MCI opportunities Tokyo Olympics 2020 (limited space in Japan for groups) Relationship between Hawai i and Japan Edu-Tourism Medical tourism 32
Takeaways #GTS2017 30 33
Takeaways 1 Loyalty of Japanese visitors towards Hawai i is unprecedented Number of U.S. visitors to Japan totaled 1.2 million in 2016 1.2M Visitors 34
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 2016 1.5M visitors (16.85%) 1.2M visitors 34
Takeaways 2 Maintaining our strong market share is vital for our state - $1.25 billion July YTD $ $ $ $ $ $ $ $ $ $ $ $ HAWAI I 35
Takeaways Beware of the onslaught of competing 2 destinations $ $ $ HAWAI I Australia Canada Okinawa Hong Kong South East Asia 36
1,241,805 1,465,654 1,518,517 1,510,938 1,482,304 1,488,396 7.3% 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 2011 2012 2013 2014 2015 2016 Japan arrivals to Hawai i 2011 2012 2013 2014 2015 2016 Japan s outbound market share: Hawai i 37
Mahalo Eric Takahata Managing Director Hawai i Tourism Japan #GTS2017