Betsy Wall, Executive Director Japan & New England – Americas Newest Trans-Pacific Gateway Tourism U ~ March 14, 2012 Presenters: Betsy Larkin, Senior.

Betsy Wall, Executive Director

Japan & New England – America’s Newest Trans-Pacific Gateway

Tourism U ~ March 14, 2012Presenters:Betsy Larkin, Senior Manager, International Marketing, MOTTShoko Hirao, MOTT Japanese Marketing Representative

International Marketing ProgramFY2012

United Kingdom Germany

Japan France

Italy Ireland

International Marketing Program FY2012

Why does Massachusetts invest in the Japanese Tourism Market?

A Japanese traveler: •Spends more $$•Fills rooms mid-week•Books 60 days in advance


Why does Massachusetts invest in the Japanese Tourism Market?

•Direct Air Service Begins April 22•Tokyo Narita to Boston Logan•Japan Airlines codeshare with American Airlines

•Boeing 787 “Dreamliner”•Feeder Flights from 9 countries

Praia

PontaDelgada

Terceira

Reykjavik

DublinShannon London

LHR Frankfurt

MunichParis

RomeMadrid

Lisbon

Amsterdam

Zurich

TorontoYYZ & YTZ

BOS

Bermuda

Santo Domingo

Punta Cana

St. Maarten

ProvidencialesNassau

Aruba

Montego Bay

Cancun Santiago

TokyoNRT

Ottawa Montreal

Direct Service from 31 International Markets


Boston Logan International Airport

Proximity to downtown

Transportation

New Direct Air Service


Boston Logan International Airport

Visitation Spending

Domestic 18 million $13.5 billion International 1.9 million $2.1 billion


Visitation to MassachusettsThe Numbers: 2010

International Visitation to U.S. & Mass in 2010

CountryVisitation

to U.S.Visitation

to MAMA

Market Share

Canada 20,000,000 650,000 3.3%UK 3,800,000 189,000 4.9%Germany 1,700,000 121,000 7.0%Japan 3,400,000 71,000 2.1%France 1,300,000 70,000 5.2%Italy 837,000 41,000 4.9%Ireland 362,000 21,000 5.8%

Source: U.S. Dept. of Commerce/OTTI


Top 15 States for Overseas Visitors

Massachusettsis # 7

*

Excludes Canada & Mexico.


Rank Country1 New York2 Florida3 California4 Nevada5 Hawaii6 Guam7 Massachusetts8 Illinois9 Texas

10 New Jersey

*

(Source: U.S. Dept of Commerce)

Visitor Profiles & Comparisons:Where international travelers spend

Lodging Retail

Domestic 20% 7%

International 33% 25%


(Source: U.S. Dept of Commerce/OTTI)

• Tour Operator• Arranges different services to create and sell a vacation

• Receptive Operator• Manages & sells “tourism products” to Tour Operators• Mostly based in the U.S.

• “Product”• Accommodations, Transportation, Attractions, Tours, Dining, Entertainment – anything that can be packaged and

sold


How does the Japanese Market Work?

Tourism “Food Chain”

US-based companies that specialize in packaging services for International Tour Operators. Contract directly with

accommodations, transportation, attractions, events, and all amenities. Consolidates billing. “One-stop shop.”

International Tour OperatorPackages all elements of tour and travel products together

and/ or buys packages from Receptive Operators. Sells via travel agents or directly to the consumer.

Travel Agent“Front Person” - sells packaged holidays from tour

operators directly to the consumer.

Consumer

SuppliersLodgings and attractions.

Receptive Operator

Increase: VisitationMarket shareTour operators“Product”Media coverageTax RevenueJobs

= Increased Revenue for MA Tourism Businesses


MOTT’s International Goals

+


Japan – Overview

•2nd largest overseas source of inbound travelers to U.S. (including Guam and other U.S. territories)•U.S. has 20% market share of Japanese outbound•Brand USA has named Japan as a priority market•U.S. ranked #2 behind Italy as a “dream destination” for Japanese travelers…Switzerland, Australia, France not far behind•Japanese strongly influenced by media, guidebooks•Aging population (Source: U.S. Dept of Commerce/OTTI)

International Travel after Fukushima•March: Overseas travel ↓ 25%•April: “Cheer up Japan, Smile thru Travel”•July: Bookings Overseas ↑ 4.3%•# Japanese travelers who went overseas in 2011

= ↑ 2.1% • 2012 Outlook: • Overseas travel expected ↑ 5%


Source:Japan Assn of Travel Agents

Japan – Overview


Japan – Overview 2010

•3.4 Million visitors to U.S.•1.7 Million visitors to mainland U.S.

→71,000 visitors to Massachusetts→This is up 87% over 2009→2011 numbers not available until June

•Market Share to MA in 2010 2.1%•Compare to Market Share in 2007 1.8%


Japan – Spending in U.S.


•$14.6 billion was spent by Japanese travelers in the U.S. in 2010 - 2nd largest market after Canada(Source: U.S. Dept of Commerce/OTTI)

•# 1 overseas source of spending in U.S. •Japanese Yen has gotten stronger as visitation to the U.S. from Japan has decreased since 1990s (Source: U.S. Commercial Service)

NEW Japan Airlines (JAL)/AA Tokyo-Boston Direct Service Starts April 22, 2012 @ 4 flights/week • Boeing Dreamliner • 13.5 Hour Flight

•Will shave 6 hours off the time it takes to get to Boston now!



• 4 flights per week from April 22nd ~ May 31st • Daily starting June 1st

•185 passengers each way


Easy connections through Tokyo’s Narita Airport to other major cities in Japan

Osaka - 2 airports

Nagoya

Fukuoka

Sapporo

Okinawa Osaka

Nagoya

Fukuoka

Sapporo


Easy connections through Tokyo’s Narita Airport to 14 cities in Asia

Beijing Hong Kong

Shanghai Taipei

Busan Seoul

Singapore Delhi

Bangkok Manila

Ho Chi Minh City Hanoi

Kuala Lumpur Jakarta


• Over 3,000 islands. Four largest islands account for 97% of Japan

• Capital =Tokyo, the largest metropolitan city in the world with 13 million residents •Tokyo is half of the size of New York City, and has twice as many people.

Japan in general

What are Japanese visitors interested in?

•Relaxing is not part of their vacations•Beaches and spas don’t attract them•They would like to keep moving all day everyday•Baseball/Red Sox/Fenway Park•Harvard & MIT•JFK & Kennedys•MFA•Shopping!•Lobster and seafood


Japanese Holidays - 3 major periods

•Golden Week - End of April ~ early May. …During this period, 4 public holidays are observed

•Summer Obon holiday - Around August 15th

•Year End/ New Years Holiday - most businesses are closed between December 28 and January 3

•Thanksgiving and Christmas are not holidays

•Summer vacation for schools is just 1 month in August


How do Japanese travelers book vacations?

•Group travel most common; size = 2-20 people

•Combined packages with NYC & Washington, D.C.

•Average stay in the US is 8 days

•Prefer Japanese-speaking guides



Market Demand

•Silver market: over age 60

•40.3 million in 2011 (31.5% of the total population)

•Economic power of $800 billion

•Life expectancy = long

•Silver has time + money

•Prefers full package tours


(Source: U.S. Embassy, Tokyo)

Market Characteristics

•Establishing relationships with tour operators - you need to built their trust before you can start doing business

•Face-to-face meetings are valued

•Long-term commitment

•Cold calling is not appropriate

•Have some of your information in Japanese


Japanese Market Entry

•Get to know Boston-based receptive operators

•All hotel contracts are made through NYC or LA-based receptive operators

•Tour operators/wholesalers in Tokyo make the final decisions

•All tour brochures are created/printed in Tokyo


Tour Brochures

•Tour brochures published 2 X / year • except for seasonal brochures

•Kamiki (April~October)• Planned in August/September

•Shimoki (November~March)

• Planned in March/April



Japanese Cultural Differences – Hotels

•Require rooms with 2 beds, even honeymooners

•King-sized bed with pull out couch not acceptable

•They require a bathtub

•DO NOT attempt to prepare Japanese breakfast unless you know it is correctly prepared.

Cultural Differences – Restaurants

•Larger portions of food gives negative impressions; best to cut the portions in half

•Fruit is the most popular dessert

•Most cakes, cookies ice cream too sweet

•Seafood and local cuisine are preferred


Cultural Differences – Retail Stores/Museum Shops

•Gift giving culture - It is customary to bring gifts back to family, friends and co-workers from a trip

•Common to purchase 20 of thesame item and ask for 20 bags

•Japanese spend on average twice as much on souvenirs than other overseas visitors to the U.S.


Foreign Language Websites

www.massvacation.de

www.massvacation.jp

www.massvacation.fr

www.massvacation.it


How Can You Benefit from the Intl Market?


•Offer support for FAMs•Keep us informed – news, product, imagery•Info Needed for Trade Shows:

•JATA (Japan) - September•World Travel Market (UK) – November •ITB (Germany) – March •International Pow Wow – April

•Discover New England Summit

Help Us to Help You!

Industry ParticipationFamiliarization (FAM) Tours

Trade FAMsProduct Managers, Sales & Reservations Staff, Travel Agents, Airline Reps, MICE Reps

Press FAMsTravel writers, daily newspapers, monthly glossies, in-flight magazines, travel trade publications, reality TV series, bloggers, travel shows


Why participate in FAMs?

Media coverage

Building relationships with travel trade

Product Training

Be an ambassador for Massachusetts


Industry ParticipationFamiliarization (FAM) Tours


Industry ParticipationMassachusetts’

Media Value

in 2010:

$23 Million!Familiarization (FAM) Tours


Industry Participation

Trade FAMs Press FAMS Total

FY08 12 33 45

FY09 18 58 76

FY10 10 31 41

FY11 12 21 33

FY12 14 31 45+

Familiarization (FAM) Tours


Industry ParticipationOther Opportunities in the Japanese Market

• Trade Mission & Seminar in L.A. (August or September ~ tentative)• JATA Show (September 20-23)• Japan Sales Mission (Winter 2013)

Industry ParticipationLeads Page:

www.massvacation.com/industry/

Username: leadsPassword: 3RT67JM

•Password protected page

•Domestic Press Release pitch schedule

•Press & trade leads that benefit the industry

•Reports from trade shows


International Marketing ProgramQuestions?


Betsy LarkinSenior Manager, International Marketing

Massachusetts Office of Travel & [email protected]


Tourism U is a FREE series of educational seminars for the tourism industry brought to you by the

Massachusetts Office of Travel & Tourism.

Dagny Ashley, [email protected]

www.massvacation.com

Betsy Wall, Executive Director Japan & New England – Americas Newest Trans-Pacific Gateway Tourism U ~ March 14, 2012 Presenters: Betsy Larkin, Senior.

Documents

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