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Competitive Advantage of s Ideal Location With major Asian cities within range of 4 hours, located in the heart of East Asia Seoul 2h 1min Beijing Dalian Tianjin Tsingtao Shanghai Seoul Busan Narita Haneda KansaiNagoya Tsingtao Shanghai Taipei 2h 5min 2h 5min 1h 3min Bangkok Phnom Penh Hanoi Vientiane Kuala Lumpur Macau Ho Chi Minh Singapore Hangzhou Amoy Taipei アモイ Hong Kong Manila Locations within 4- hour flight from Hong Kong Bangkok Singapore Amoy (From October 215) Manila (From October 215) Narita Haneda 2h 35min 4h 25min 5h 2h 3h 2h 25min 2h 2min Nagoya 2h 15min Kansai 1h 5min 4
Growth Industry Strategy: Development as a Gateway to Asia Points The Conference of Industrial Competitiveness in Kyushu and was established to consider growth strategies in the Kyushu and regions, in light of an emergency resolution by the Japan Revitalization Strategy and the National Governors Association. To consider growth strategies in and cooperative measures between and Kyushu, the Subcommittee was established under the Conference. State of An international air cargo hub business began in 29 to connect various Asian cities with the mainland, utilizing the locational benefits of. is well suited as an industrial location targeting emerging markets. A world-class research educational institution (OIST) was opened. Drug discovery startup venture firms and IT firms have entered and converged. A wealth of attractive regional resources (environment, agricultural products, and culture) s Potential Locational Benefits The center of East Asia Key cities of Tokyo, Seoul, Hong Kong, Shanghai, Taipei, Manila, etc., within 1,5km (within four hours by airplane) from Naha Hong Kong Beijing Shanghai Fuzhou Taipei Manila Pyongyang Seoul Busan Kagoshima Osaka Sapporo Aomori Tokyo Basic Concept Position as a Gateway to Asia, hub for trade and interaction in people, products, money, and information International logistics hub-related industries Concentrating products nationwide to and expanding into Asia Enriching and differentiation for international expos and business meetings, including the Great Trade Fair Strengthening cooperation with other regions Concentration of -type industries adjacent to airports and sea ports Development of infrastructure toward strengthening logistics hub functions Industries Utilizing Regional Resources Health / Bio / Sports / ICT Industries Making a hub for internal and external advanced information and technology exchange Strengthening intellectual foundations by concentrating internal and external advanced researchers and companies Creating and adding value in sports-related industries Effective utilization of IoT and big data Promotion, etc., of measures in island-type environmental business, renewable energy development, and energy-saving measures Creating new industries in view of the Asian market through use of s diverse biological and tourism resources, etc. Adding value to tourism Expanding production capacity and adding value to agricultural and fishery products and foods produced in Broadcasting artistic and cultural industries to the world s Potential Knowledge Foundations Research and development institutions to attract and develop personnel Institute of Science and Technology (OIST) World-class interdisciplinary and international research and education Clinical Simulation Center Facility for personnel development for the latest medical treatment s Potential Regional Resources Subtropical climate and diversity born of an island environment Nature and landscape with blue skies, seas and mangrove forests Traditional entertainment and culture such as music, eisa, and traditional dance Unique island produce such as peucedanum japonicum, turmeric, hemerocallis fulva, and lxeris Personnel development to support key strategic industries Personnel to create new businesses via Developing world standard global business comprehensive cooperation across industrial personnel sectors Personnel with advanced technological skills 5
Population of (Future Prospects) The population of is expected to take a downward turn in and after 225. Population is on the increase at this stage, but active steps towards population growth are being taken now. (in thousands) Population trends in (21) 2,3 (235) 1,54 (25) 1,62 Efforts to facilitate natural increase in population 1,393 (21) 1,434 (215) Projected population curve based on risk scenarios Creation of a society that allows people to marry, give birth to and raise children without undue worries Elimination of childcare waiting list Promotion of health and longevity in campaign Efforts to enhance growth of society (21) 84 Creation of a dynamic society that is open to society Job creation and securing diverse human resources Increasing tourists and visitors Aims to revitalize isolated islands and depopulated regions Projected population Creation of a society that delivers well-balanced and sustainable population growth Improvement of conditions for long-term residence Industrial development by demonstrating attractive regional characteristics 6
Number of Visitors to FY216 marked a record 8.76 million tourists visiting The number of overseas tourists was 2.12 million (up 27% YoY), renewing a record high ((persons) 単位 : 人 ) 12,, 1,, 8,, 6,, 4,, 2,, 入域観光客数と観光収入の推移 Trends in the number of visitors and tourism revenues 29 年度計画 95 万人 Target for FY217 9,5, H28 Number 年度入域観光客数 of visitors in FY216 876 万人 ( 前年度比 83 万人増 ) 8,76, (up by 83, YoY) Target for FY221 revised upward: 1,, 12,, 33 Target 年度計画 for FY221 1,2 万人 12,, ( 単位 ( million) : 百万円 ) 7, 7, 6, 5, 4, 3, 2, 1, 23 H15 H16 4 H17 5 H18 6 7 H19 8 H2 9 H21 H22 1 H23 11 H24 12 H25 13 H26 14 H27 15 216 H28 221 H33 (fiscal ( 年度 year) ) ( 出所 ) 沖縄県 第 5 次沖縄県観光振興基本計画 Japanese visitors (left axis) Overseas visitors (left axis) Tourism revenues (right axis) 国内客 ( 左軸 ) 外国人客 ( 左軸 ) 観光収入 ( 右軸 ) Number 平成 28 年クルーズ船寄港回数 of port call by cruise ships 387 回 in 216: 387 Scheduled number of port call in 217: 52 (up 3%) 7
Housing Market Trends in Housing market in remains strong According to the national census 215, growth rate of population and number of households are both the highest in Japan Number of new housing starts by housing type Total population and total number of households in 18, 16, 14, 12, 1, 8, 6, Owner-occupied House for Company Condominiums and detached 持家貸家給与住宅分譲住宅 rent -owned housing 1,829 2,77 1,933 1,339 41 3 163 25 944 1,381 85 794 25 93 1,772 1,914 1,726 11,135 8,253 7,469 7,381 (thousand households) (in thousands) Total population and total number of households Total population Total number of households As of October 1 of each year As of the 1st of each month 4, 2, 2,441 2,773 3,431 3,976 3,148 3,17 3,13 22 21 年 23 211 年 24 212 年 25 213年 26 214 年 27 215 年 28 216年 27 28 29 21 211 212 213 214 215 National census 216 217 8
Economic Trends in 1 BOJ Tankan 5 4 3 2 1 日銀短観業況判断 DI BOJ Tankan Business Confidence DI (1) H25.3 H25.9 H26.3 H26.9 H27.3 H27.9 H28.3 H28.9 H29.3 Mar. 213 Sep. 213 Mar. 214 Sep. 214 Mar. 215 Sep. 215 Mar. 216 Sep. 216Mar. 217 沖縄県 National average 全国 Overview The prefectural economy is expanding overall. In terms of personal spending, trends are strong against a backdrop of an increase in the prefecture s population, tourism demand, and an improved employment and earnings environment within the prefecture. In terms of tourism, performance is favorable as domestic visitor demand is strong and demand from foreign visitors is on a rising trend. In construction-related terms, public investment is solid. Additionally, residential investment is trending at high levels against a backdrop of an increase in the prefecture s population. In terms of employment and earnings trends, improvement is significantly advancing. Source: BOJ Naha Branch 9
Economic Trends in 2 Official land prices (%) 4 3 2 1-1 -2-3 -4 (%) 4 3 2 1-1 -2-3 Residential 住宅地 land prices 25 年 26 年 27 年 28 年 29 年 213 214 215 216 217 沖縄県 Fukuoka 福岡県 National 全国 average Commercial 商業地 land prices 25 213 年 214 26 年 215 27 年 216 28 年 217 29 年 Overview In land for residential use, demand remains strong overall for both detached homes and condominiums against a backdrop of an increasing population. In particular, in central Naha, the Shintoshin area, and the Makabi area, demand is vigorous for land for detached homes and condominiums, and due to the scarcity of suitable land, the growth rate has exceeded the previous year in some areas. In land for commercial use, demand for land for use as storefronts and hotels, etc., remains solid against a backdrop of an increase in both domestic and foreign tourists. Source: Ministry of Land, Infrastructure, Transport and Tourism 1
Economic Trends in 3 Employment situation 8. 7. 6. 5. 4. 3. 2. 1.. 完全失業率の推移 Trends in unemployment rates ( 単位 :%) (%) H24 H25 H26 H27.3 H28.3 H29.2 212 213 214 Mar. 215 Mar. 216 Feb. 217 Source: 出所 : 沖縄県 総務省 Prefecture, Ministry of Internal Affairs and Communications 差異 Difference 沖縄県 National average 全国 In the past, suffered nearly twice the unemployment rate of the national average, but the rates have steadily fallen, becoming closer to the national level. 1.6 1.4 1.2 1..98.96.94.92.9.88.86 (times) Active opening 有効求人倍率 ratio ((seasonally 季節調整済 ) adjusted) 28/1-3 Jan. -月 28/4-6 Apr. 月 - Jul. 28/7-9 - Sep. 月 28/1-12 Oct. -月 29/1-3 Jan. 月 - Mar. Jun. 216 Dec. Mar. 216 216 216 217 11