Transcript Slide 1

Betsy Wall, Executive Director
Japan & New England –
America’s Newest Trans-Pacific Gateway
Tourism U ~ March 14, 2012
Presenters:
Betsy Larkin, Senior Manager, International Marketing, MOTT
Shoko Hirao, MOTT Japanese Marketing Representative
International Marketing Program
FY2012
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
International Marketing Program FY2012
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
International Marketing Program FY2012
Boston Logan International Airport
Reykjavik
Dublin
Amsterdam
Shannon
London
Frankfurt
LHR
Paris
Munich
Zurich
Ottawa Montreal
Toronto
YYZ & YTZ
BOS
Rome
Terceira
Ponta
Delgada
Tokyo
NRT
Bermuda
Direct Service from 31
International Markets
Nassau
Cancun
Providenciales
Santiago Punta Cana
Montego Santo St. Maarten
Bay Domingo
Aruba
Praia
Madrid
Lisbon
International Marketing Program FY2012
Boston Logan International Airport
Proximity to downtown
Transportation
New Direct Air Service
International Marketing Program FY2012
Visitation to Massachusetts
The Numbers: 2010
Visitation Spending
Domestic
International
18 million
1.9 million
$13.5 billion
$2.1 billion
International Marketing Program FY2012
International Visitation to U.S. & Mass in 2010
Country
Canada
UK
Germany
Japan
France
Italy
Ireland
Visitation
to U.S.
Visitation
to MA
20,000,000 650,000
3,800,000 189,000
1,700,000 121,000
3,400,000 71,000
1,300,000 70,000
837,000
41,000
362,000
21,000
MA
Market Share
3.3%
4.9%
7.0%
2.1%
5.2%
4.9%
5.8%
Source: U.S. Dept. of Commerce/OTTI
International Marketing Program FY2012
Top 15 States for Overseas Visitors *
Massachusetts
is # 7
Rank
1
2
3
4
5
6
7
8
9
10
Country
New York
Florida
California
Nevada
Hawaii
Guam
Massachusetts
Illinois
Texas
New Jersey
*Excludes
Canada & Mexico.
(Source: U.S. Dept of Commerce)
International Marketing Program FY2012
Visitor Profiles & Comparisons:
Where international travelers spend
Lodging
Retail
Domestic
20%
7%
International
33%
25%
(Source: U.S. Dept of Commerce/OTTI)
International Marketing Program FY2012
How does the Japanese Market Work?
• 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
Tourism “Food Chain”
Consumer
Travel Agent
“Front Person” - sells packaged holidays from tour
operators directly to the consumer.
International Tour Operator
Packages all elements of tour and travel products together
and/ or buys packages from Receptive Operators.
Sells via travel agents or directly to the consumer.
Receptive Operator
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.”
Suppliers
Lodgings and attractions.
International Marketing Program FY2012
MOTT’s International Goals
Increase:
 Visitation
 Market share
 Tour operators
 “Product”
 Media coverage
+
 Tax Revenue
 Jobs
= Increased Revenue for MA Tourism Businesses
International Marketing Program FY2012
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 Marketing Program FY2012
Japan – Overview
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
International Marketing Program FY2012
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%
(Source: U.S. Dept of Commerce/OTTI)
International Marketing Program FY2012
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)
International Marketing Program FY2012
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!
International Marketing Program FY2012
• 4 flights per week from April 22nd ~ May 31st
• Daily starting June 1st
•185 passengers each way
International Marketing Program FY2012
Easy connections through Tokyo’s Narita Airport
to other major cities in Japan
Osaka - 2 airports
Sapporo
Nagoya
Fukuoka
Sapporo
Okinawa
Nagoya
Fukuoka
Osaka
International Marketing Program FY2012
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
International Marketing Program FY2012
Japan in general
• 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.
International Marketing Program FY2012
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
International Marketing Program FY2012
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
International Marketing Program FY2012
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
(Source: U.S. Dept of Commerce/OTTI)
•Prefer Japanese-speaking guides
International Marketing Program FY2012
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)
International Marketing Program FY2012
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
International Marketing Program FY2012
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
International Marketing Program FY2012
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
International Marketing Program FY2012
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.
International Marketing Program FY2012
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
International Marketing Program FY2012
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 the
same item and ask for 20 bags
•Japanese spend on average twice
as much on souvenirs than other
overseas visitors to the U.S.
International Marketing Program FY2012
Foreign Language Websites
www.massvacation.de
www.massvacation.jp
www.massvacation.fr
www.massvacation.it
International Marketing Program FY2012
How Can You Benefit from the Intl Market?
Help Us to Help You!
•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
International Marketing Program FY2012
Industry Participation
Familiarization (FAM) Tours
Trade FAMs
Product Managers, Sales & Reservations Staff,
Travel Agents, Airline Reps, MICE Reps
Press FAMs
Travel writers, daily newspapers, monthly glossies,
in-flight magazines, travel trade publications,
reality TV series, bloggers, travel shows
International Marketing Program FY2012
Industry Participation
Familiarization (FAM) Tours
Why participate in FAMs?
Media coverage
Building relationships with travel trade
Product Training
Be an ambassador for Massachusetts
International Marketing Program FY2012
Industry Participation
Familiarization (FAM) Tours
International Marketing Program FY2012
Industry Participation
Familiarization (FAM) Tours
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+
International Marketing Program FY2012
Industry Participation
Other 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)
International Marketing Program FY2012
Industry Participation
Leads Page:
www.massvacation.com/industry/
Username: leads
Password: 3RT67JM
•Password protected page
•Domestic Press Release pitch schedule
•Press & trade leads that benefit the industry
•Reports from trade shows
International Marketing Program FY2012
International Marketing Program
Questions?
Betsy Larkin
Senior Manager, International Marketing
Massachusetts Office of Travel & Tourism
[email protected]
International Marketing Program FY2012
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, Coordinator
[email protected]
www.massvacation.com