Country report

Country reportJAPAN

Fact FileCountry Name: Japan

Capital : Tokyo

Administrative Divisions:47 prefectures; Aichi, Akita, Aomori, Chiba, Ehime, Fukui, Fukuoka, Fukushima, Gifu, Gunma, Hiroshima, Hokkaido, Hyogo, Ibaraki, Ishikawa, Iwate, Kagawa, Kagoshima, Kanagawa, Kochi, Kumamoto, Kyoto, Mie, Miyagi, Miyazaki, Nagano, Nagasaki, Nara, Niigata, Oita, Okayama, Okinawa, Osaka, Saga, Saitama, Shiga, Shimane, Shizuoka, Tochigi, Tokushima, Tokyo, Tottori, Toyama, Wakayama, Yamagata, Yamaguchi, Yamanashi

Fact FileLocation: Eastern Asia, island chain between the North Pacific Ocean and the Sea of Japan, east of the Korean Peninsula

Area: total:377.9 sq km

Population(millions): 128.1 (2010); Increase of only 0.2% from 2005

Language: Japanese

Currency: Japanese Yen (JPY)

Time Difference: UTC/GMT + 9 hours

Principal national holiday periods include New Year(28 Dec- 04 Jan); the Spring Break(20 Mar - 05 Apr); Golden Week (28 Apr 06 May); Summer Holidays(20 Jul 31 Aug). * Dates are approximate

Major International Airports: Tokyo Narita(NRT), Kansai(KIX)

Physical FeaturesIsland Nation Islands form a crescent - shaped archipelago Consists of the main islands of Hokkaido, Honshu, Shikoku, Kyushu and Okinawa, and more than 6,800 smaller islands of varying sizes. Surface area is equivalent to 0.3 percent of the global land mass. 66% forests, 13% farmland; 5 percent building landProne to earthquakes and has active volcanoes

Surface Area of Japan (2010)

Area( in sq kms) Japan ........................ 377,950 Main Islands Honshu ..................... 231,115* Hokkaido .................... 83,457 Kyushu ......................... 42,191 Shikoku ..................... ... 18,792* Okinawa ........................ 2,276 * Excluding some areas of which boundaries are not yet fixed. Source: Ministry of Land, Infrastructure, Transport and Tourism, Japan

ClimateTemperate Marine ClimateExperiences hot, humid summers and cold, dry winters.Has two long spells of rainy seasons, one in early summer and the other in autumnFrom summer to autumn, tropical cyclones generated in the tropical seas develop into typhoons and hit Japan, sometimes causing storm and flood damage.

Population128,057,352 as of October 1, 2010 - Male: 62,327,737 (48.7% of the total population) - Female: 65,729,615 (51.3 %)

Population of foreign residents living in Japan: 1,648,000 (5.9% increase from 2005)

Tokyo ranked at the top in the population increase rate with 4.6%, followed by Kanagawa-ken (2.9%), Chiba-ken (2.6%)

Decline in PopulationJapanese population is estimated to be declining by 0.1% a year. UNs forecast indicates that population will shrink by 3% between 2009 and 2020. Life Expectancy at birth is 83 years.Two - thirds of the population is urban. Tokyo has 8.7 mn. The other main cities are: Yokohama(3.7mn), Osaka(2.7mn), Nagoya(2.2 mn) Sapporo(1.9mn), Kobe (1.5 mn) Kyoto(1.5mn), Fukuoka(1.4mn), Kawasaki(1.4 mn), Saitama(1.2 mn), Hiroshima(1.2 mn), Sendai(1.0mn)

Reasons for Decline in PopulationDue to the sharp decrease in the younger generations. People tend to stay unmarried until they are in their thirties or for the rest of their lives and a large proportion of married couples decide not to have children.However, the decrease in population does not directly result in the immediate fall in the travelling population. On the contrary, the fast increasing seniors are a good potential market for the next few decades. This calls for change in marketing strategies for international destinations.

Population Growth Rate : 1920 to 2010

Age - Wise Breakdown (%) 2009e 2020f 0 - 4 years 4.2 3.5 5 - 14 years 9.1 8.1 15 - 24 years 10.2 9.4 25 - 34 years 13.0 10.3 35 - 44 years 14.3 13.0 45 - 54 years 12.5 14.8 55 - 64 years 14.7 12.3 65 - 74 years 11.5 13.9 75 - 84 years 7.6 9.5 85+ 2.9 5.1 Source: ETC

Change of population composition by age group : 1920 to 2010

Age Group : Growth PatternPercentage in 2009 were : 0 - 24 years: 23%; 25 - 59 years: 47% ; over 60 : 30%.

Median age is 45 years much higher than the world median of 29 years Declines of 13% in 0 - 24 years group and 8% in 25 - 59 years group.

Most Aging Country

Highest percentage of the population aged 65 years old (23%)and over in the world

Japan is the most aging country in the world followed by Germany and Italy both at 20.4%.

Economic IndicatorsItemYearFiguresPopulation (millions)2008127.692009127.512010128.06Projection(medium variant)2050 95.15Employed persons(1,000)200962,820Unemployed persons (1000)20093,360Unemployment rate(%)20095.1Industrial Production Index (2005 = 100)200981.7201094.3Gross Domestic Product(US$ billion)20084,89220095,042Gross domestic product (PPP, US$) per capita200932,554.2

Number of HouseholdsNumber of households of Japan was 51,950,504 as of October 1, 2010

Number of private households was 51,842,000

Number of one-person households was 16,785,000 and formed the largest category among private households (more than 30%)

Private households by size of households: 1990 to 2010

In the population aged 65 and over, one in 10 males and one in 5 females were living alone.

Travel & Tourism IndicatorsT&T industry, 2010 estimates Percent 2011-2020 of Total Annual Growth (% forecast) GDP (US$ millions) : 172,546 3.4 2.1 Employment (1,000 jobs) : 2,294 3.7 1.0 T&T economy, 2010 estimatesGDP (US$ millions) : 459,323 9.2 2.5Employment (1,000 jobs) : 6,062 9.8 1.2

Source: World Travel & Tourism Council, TSA Research 2010

Travel & Tourism CompetivenessTravel & Tourism Infrastructure Out of 139 countries Japan ranked 6th for Ground Transport Infrastructure, 22nd for Air Transport Infrastructure, 28th for Information & Communications Technology Infrastructure, 48th for Tourism InfrastructureTravel & Tourism Regulatory Framework Ranked 19th for Safety and Security, 22nd for Health and Hygiene, 50th for Prioritization of Travel & Tourism, 51st for Policy , Rules and Regulations and 52nd for Environmental SustainabilityTravel & Tourism Human, Cultural & Natural Resources Ranked 22nd for Human Resources, 12th for Cultural Resources and 36th for Natural Resources

Source: The Travel & Tourism Competitiveness Report 2011

Outbound Tourism, 2011 : Month - wise

Top Destination RegionsBased on 2007 outbound figures the top regions were:

Northeast Asia: 30%Hawaii, Guam and Saipan: 19%Europe: 18%Southeast Asia: 16%North America: 7%South Asia, Middle East, Africa, Central/South America: 6%Oceania:4%

Japanese market was steadily shifting to closer destinations with short haul trips rising from 42% in 1998 to 55% in 2007. Long haul trips fell from 58% to 45%.

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Source RegionsAbout 90% of Japanese outbound travellers come from the island of Honshu, including:

- over 40% from the Tokyo Metropolitan Area - 15% from the Kansai(Kyoto/Osaka) area - 12% from the Tokai(Nagoya) area

International Tourism Expenditure

Japan ranked 7th globally in 2010 with a spend of US $ 27.9 bn

But in 2011 it ranked 9th with a spend of US $ 27.2 bn

Purpose of Trip Main purpose 2005 2006 of trip(%)

Leisure/holidays 67.1 67.6 Honeymoon 2.0 2.3 VFR 5.9 6.2 Business 14.6 12.2 Training/inspection/technical 1.7 2.4 Conference 1.6 1.7 Study/school trips 1.0 1.3 Other 4.0 4.3 No Answer 2.0 1.9

Source: ETC survey

Duration of TripAverage Length : 6.1 nights in 2007In 2007, 31.5% of Japanese outbound holiday trips lasted 2 - 4 days; 41% 5 - 7 days; 23% 8 - 11 days and 4% 12 days or more.In 1998 only 21.5% of trips lasted 2 - 4 days and 43% lasted 8 days or more.Growth of short haul trips is seenBusiness trips are longer; leisure tips are shorter

Seasonality Outbound Trips : Month - wise average, 2006 - 2008 Jan 8.1Feb 8.2 Mar 9.1Apr 7.4May 7.8Jun 8.0Jul 8.3 Aug 9.6 Sep 8.8Oct 8.5 Nov 8.3Dec 7.9

Accommodation PreferencesHoliday/leisure travellers generally prefer 3 star or even higher category hotelsStudent travellers generally use lower - grade hotelsYoung Japanese ladies in their 20s and 30s prefer greater luxury four or five star hotels.Use of mid-range and budget hotels is on the increase. Guest houses, bed and breakfast and other forms of accommodation may also be used.

Nature of TravellersIn 2007, 56% of outbound travellers were male and 44% female. Business visitors are mostly males.

In 2005, 4.6% were first - time travellers, 14% had travelled 1 - 2 times; 19% had travelled 5 - 8 times and 47% had travelled 9 or more times.

In 2005, 66% made one trip in a year; 20% made two trips; 7% three trips and 7% four trips or more.

Departures, Age - wiseAge - wise(2007) MalesFemalesTotal (%)(%) (%)0 - 9 years2.73.33.010 - 19 years3.86.14.820 - 29 years 11.623.416.830 - 39 years 21.720.721.240 - 49 years22.412.718.150 - 59 years20.215.818.360+17.718.017.8Total100.0100.0100.0

Travel CompanionsIn 2007:

- 11% travelled alone; around 59% travelled with family; 30% with friends- 47% were accompanied by their husband or wife- 16% by their children or grand - children- 8% by their parents and grand - parents- 5.6% by other family members

Preferred ActivitiesVisiting natural and scenic attractions ShoppingHistoric and cultural attractionsRest and relaxationArt Galleries and museumsBeauty treatments and massageTheatre, concerts and moviesTheme parksVisiting family and friends

Aspirational DestinationsAccording to Wave 3 2008, the top ten aspirational destinations for the Japanese are:- Italy- Switzerland- France- UK- Australia- Canada- New Zealand- Germany- Sweden - Spain

Travel DecisionsTimings Leisure VFR Business All Trips /holiday (in %, 2005)1 week before2 3 21 51 - 2 weeks before710 34 11 2 weeks - 1 month 2529 29 25 before 1 - 2 months before3733 10 322 - 3 months before 1814 2 153 months or more 10 8 1 10before No answer 1 3 4 2

Source: ETC survey

Booking MethodsWomen and young travellers use internet more. Travel agencies/tour operators and telephone are also used especially by elderly travellers.

Since the majority of Japanese travellers rely on travel agents to plan their travel arrangements, the travel agent influences the choice of destinations.

Information SourcesIn 2007, the information sources for holiday trips were: Internet: 78% Travel guide books: 60.5% Travel agency pamphlets: 51%Travel agencies: 37.5% National and Regional tourist boards: 18% Friends & Relatives: 16.5%Mass Media : 11%Airline and railway companies: 9%

Use of internet and tourist boards is increasing while the use of guide books and pamphlets are now decreasing.

Online Population

Total Online Population (000's) in 2011: 101,229

Percentage of Population Online in 2011: 80.0%(101,228,736 internet users)

This represented 10.0% of the Asian population.

95.7 million people will use the internet in Japan by 2013. This would be up from 92.3 million in 2009.

Online Travel BookingsJapan's online travel bookings are projected to exceed US$31 billion in 2012, according to PhoCusWright.

Online Travel Agencies (OTAs) attracted an average of 11.3 million monthly unique visitors in Japan in May - July 2011.

Travel information sites (the second - most frequented online travel category in Japan) averaged 7.1 million monthly unique visitors in May - July 2011.

Foreign Visitors To Japan, 2010Foreign Visitors to Japan : 8.61 mn in 2010(up 26.8% from 2009)

Of the total number of foreign visitors to Japan, tourists numbered 6.36 mn (73.9 % of total foreign visitors).

Number of visitors from Asian countries was the highest: 6.53 mn (up 35.6 % from 2009)

Among Asian Countries visitors from Republic of Korea was highest : 2.44mn(28.3 % of the total number of foreign visitors to Japan)

Highest number of tourists was from Republic of Korea with 1.96 mn followed by Taiwan with 1.14 mn

Foreign Visitors, Major Source Countries

Japan Among Top Venues For Meetings

Asia - Pacific Travellers To Visit Japan More

Source: Visa Global Travel Intentions Survey 2011RegionTop 3 most visited destinations in past 2 years (%) Top 3 likely destinations in next 2 years(%)Asia - PacificChina - 24Japan - 30Hong Kong - 23United States - 21Japan - 9United Kingdom - 20

Major Tourism Events And FestivalsJATA Travel Showcase: www.jata-jts.jp/about/en/overview_en.html

Tokyo International Film Festival: http://2012.tiff-jp.net/en/

Naha Great Tug of War Festival: www.okinawastory.jp/en/event/event_111008-10.html

Feudal Lord's Procession in Hakone: www.jnto.go.jp/eng/location/spot/festival/hakonegyoretsu.html

Tori-no-ichi: www.torinoichi.jp/english/index.htm

Nagasaki Kunchi Festival : http://www.at-nagasaki.jp/foreign/english/kunchi/

Major Tourism Events And Festivals

Chusonji Fujiwara Festivals : http://www.chusonji.or.jp/en/index.html

Japan Myth Expo : http://www.japanesemythology.jp/

Chichibu Night Festival: ww.jnto.go.jp/eng/location/spot/festival/chichibuyo.html

Oga Namahage Festival: www.jnto.go.jp/eng/location/spot/festival/oganamahage.html

New Year's In Japan : http://www.japantravelinfo.com/blog/?p=1799

Antique Jamboree : http://home.att.ne.jp/sun/jambokun/antique/e.html

Major Tourism Events And FestivalsSetsubun (Bean-Throwing Festival) www.jnto.go.jp/eng/attractions/event/traditionalevents/a70a_fes_setsubun.html

Hina-Matsuri (Doll Festival) www.jnto.go.jp/eng/attractions/event/traditionalevents/a70b_fes_hina.html

Hana-Matsuri (Floral Festival) www.jnto.go.jp/eng/attractions/event/traditionalevents/a70c_fes_hana.html

Tanabata(Star Festival) www.jnto.go.jp/eng/attractions/event/traditionalevents/a69a_fes_tanabata.html

O-Bon (Lantern Festival) www.jnto.go.jp/eng/attractions/event/traditionalevents/a69b_fes_obon.html

Shichi-Go-San (Children's Shrine-Visiting Day) www.jnto.go.jp/eng/attractions/event/traditionalevents/a69c_fes_shichi.html

Useful LinksJapan National Tourism Organisation www.jnto.go.jp/Japan Association of Travel Agents www.jata-net.or.jp/english/index.htmJapan Tourism Agency www.mlit.go.jp/kankocho/en/index.html Japan Guide Association www.jga21c.or.jp/index_e.html

ReferencesJapan National Tourism OrganisationStatistics Bureau, JapanWorld Tourism OrganisationWorld Travel & Tourism CouncilEuropean Travel CommissionVisa

DisclaimerThe report is based on the information from the published sources and references mentioned and inferences drawn are from them. Stark Tourism Forum and its parent organization, The Stark Group and the Group Companies - Stark Communications, Stark Expo, Stark World Publications are not responsible for errors/omissions that could have crept in knowingly or unwittingly.