Issue #134 - This Week's Top 8 Travel & Tourism Talking Points in... Japan!
As the sakura blooms, Japan's inbound tourism recovery breaks new records.
Welcome to issue 134 of Asia Travel Re:Set.
It’s been a fascinating week for Japan watchers.
The Bank of Japan raised the benchmark interest rate (from -0.1% to a 0-0.1% range) for the first time in 17 years. Inflation rose. Stocks surged. A weak Yen neared JPY152 to the USD. One year ago it was at 131.
Meanwhile, amid the cherry blossoms, the influx of tourists appears unstoppable.
Thanks for checking-in.
- This Week's Top 8 Travel & Tourism Talking Points in Japan!
Japan's inbound tourism recovery continues to break new records.
- The Outlook for Travel & Tourism in Indonesia
In conversation with Pauline Suharno, President of ASTINDO.
This Week’s Top 8 Travel & Tourism Talking Points in Japan!
[Breakdown of February 2024 Arrivals to Japan. Source: JNTO]
This week’s big tourism news was the release of Japan’s latest arrivals figures, which set a new record (2.79 million, up 7% versus February 2019) for the month of February, and a post-Covid high. 5.48 million arrivals in the first 2 months of 2024 exceeds the 5.29 million in the same 2019 period. “Travellers from 19 countries and territories set records for February,” said the JNTO. Top 4 inbound markets so far in 2024 are South Korea (1.68m), Taiwan (0.99m), China (0.88m) and Hong Kong (0.39m). [JNTO]
Japan’s slow outbound recovery was widely noted in 2023, but stronger signs are emerging. Almost 1 million (978,900) outbound trips were made in February (which included an extra Leap Year day). 1.82 million outbound trips in the first 2 months of 2024 equates to 61% of the 2019 total, but 85% up on 2023. The 2nd half of the year usually provides a clearer picture as monthly outbound traffic climbs from June onwards. [JNTO]
Navigating Tokyo by subway is always fun and confusing, but tourists accustomed to app-enabled road travel in their home cities are always disappointed. That could change from April, as Japan plans to introduce a pilot taxi-based ride-hailing scheme in selected areas of Tokyo, Kyoto, Nagoya and Yokohama. The launch will initially offer app-based rides from Friday through Sunday. [The Mainichi]
Last Saturday, actress Ayami Nakajo officially opened an extension to the Shinkansen high-speed rail network. The first new section since September 2022 is a JPY1.6 trillion, 125km stretch between Kanazawa and Fukui - thereby connecting Tokyo and Fukui in a shade under 3 hours. It marks the first time bullet trains have served Fukui Prefecture. [The Asahi Shimbun]
837.607 is the total of tickets sold so far for the 2025 Expo. The 6-month event (which was last held in Dubai in 2022, delayed by 2 years because of Covid-19) will be hosted on Yumeshima island in Osaka Bay. It begins on 13 April 2025 and runs until 13 October. A regional promotional push is cranking up, with Kyodo News noting: “Japan is seeking to attract inbound tourists, particularly wealthy travelers from Southeast Asia, to visit rural areas during the 2025 World Exposition.” [Expo 2025].
The post-pandemic roll-call of airlines making large aircraft orders continues. Despite being “Faced with new challenges common to all, such as unstable global conditions, rising prices, and a shortage of human resources,” Japan Airlines (JAL) said it will buy 42 planes from Airbus (32) and Boeing (10) from 2025-2028. JAL also set a target to grow pre-tax earnings from JPY140 billion in 2023 to JPY200 billion in 2025. [JAL]
This week, it emerged that the Japanese and ASEAN governments want to make QR code e-wallets interoperable - thereby enabling tourists to make cashless transactions by 2025. This forms part of a broader integration between governments, central banks, banks and e-payment providers across Asia Pacific and some Middle East nations to promote cross-border digital spending. One to watch. [Nikkei Asia]
And finally… ‘Fake Tourism’. South Korea is by some distance the #1 inbound market to Japan so far in 2024, and JoongAng Daily’s Tokyo correspondent keeps a close eye on new trends. This short article is a rich source of product innovation in Japan’s capital, including a popular Asakusa tour guide who offers “a 90-minute tour that costs JPY 2,800 and offers completely false information [to visitors]”. [Korea JoongAng Daily]
The Outlook for Travel & Tourism in Indonesia
Indonesia is South East Asia’s largest country, with the largest population and largest economy. It also counts a fascinating interplay between inbound, outbound and a vast domestic travel sector. This week, we welcome back Pauline Suharno, President of ASTINDO (Indonesian Travel Agents Association), to assess the outlook for 2024.
We discuss the hot outbound destinations, high domestic air ticket prices and new travel packages for Whoosh high-speed rail passengers. Plus, will a record number of domestic travellers take-off for the Lebaran holidays? And what key areas need to be addressed for the promotion and development of Indonesia's tourism sector?
Listen to The Outlook for Travel & Tourism in Indonesia, with Pauline Suharno, ASTINDO, here:
Or search for The South East Asia Travel Show on any podcast platform
And, that’s a wrap for Issue 134.
The Asia Travel Re:Set newsletter will return next Sunday.
Until then, find me at LinkedIn and The South East Asia Travel Show
Happy travels,
Gary