On January 10, JATA (Japan Association of Travel Agents) held a New Year’s accounting meeting at its headquarters in Tokyo, where Chairman Hiroyuki Takahashi explained future initiatives. The following are excerpts from Chairman Takahashi’s comments.
Press Conference Details
The easing of waterfront restrictions last October (2022) and the recent depreciation of the yen have particularly stimulated demand for inbound travel to Japan. The domestic market has also been revitalized by the prefectural discount and nationwide travel support, and the travel industry as a whole is beginning to show positive signs, but there is still some way to go before a full-fledged recovery can be achieved.
Looking back on JATA’s activities last year, we first sent a delegation to Hawaii and South Korea to resume overseas travel, resumed sales of packaged products by member travel agencies, and cooperated in a demonstration experiment to accept foreign travelers, among other efforts to improve the environment. In addition, the prefectural and block allocation programs are working to revitalize local economies, and we were able to hold Tourism Expo Japan 2022 in Tokyo for the first time in four years. 124,000 people visited the Expo over the four days, with exhibitors from 47 prefectures across Japan and 78 countries and regions around the world, giving us a sense of the expectations for travel. The exhibition was attended by 124,000 visitors over four days, giving visitors a sense of the expectations for travel.
On October 11, the tourism industry had long awaited the relaxation of waterfront restrictions and the implementation of national travel assistance, and in November, guidelines for international cruises were formulated and announced, which allowed for the resumption of international exchanges by both air and sea.
What are the challenges ahead? Although some brightness can be seen in the market, the business environment remains challenging, with the volume handled by major travel agencies at about 50% of the 2019 level. The domestic market has recovered to about 80% of the 2019 level since the start of the nationwide travel support program, but a full recovery will require considerable time and effort, largely due to the effects of the measures. Until then, measures to stimulate demand such as the nationwide travel support are absolutely necessary, and although the program has resumed today (January 10), we would like to strongly urge the government to review the content of the measures and continue them, even if only on a slim basis, in the next fiscal year (April) and beyond.
An analysis of the national travel support for last year’s implementation shows that new and repeat demand has been generated to go there because it is cheaper. If the measure were to disappear, it would have a negative impact on the market. This measure not only rebuilds the industry, but also plays a role in regional revitalization.
Inbound travel is also recovering rapidly, but according to JNTO, there will be approximately 930,000 foreign visitors to Japan in November 2022, which is about 40% of the number in the same period in 2019. The stumbling block to recovery appears to be the three vaccinations or negative certification within 72 hours required for entry, which does not match global standards. These requirements affect corporate business trips, school trips, private international travel, and international flights at regional airports. For this reason, JATA would like to request that the government review the classification of new coronas from category 2 to category 5, which is under consideration by the government.
Outbound travel remains at a standstill, at only 20% of the 2019 level. While the weak yen and soaring overseas travel prices are partly to blame, we feel that the mindset of travelers is atrophying. How can we unravel this in the future? In cooperation with government environmental bureaus and airline companies in each country, we would like to do whatever it takes to revive demand for overseas travel among the 20 million people who once traveled overseas. First of all, we would like to create a flow of international exchange in South Korea, Taiwan, Hawaii, and the ASEAN countries to increase the overall momentum of overseas travel. The revival of overseas travel is JATA’s top priority this year, and we believe that without the revival of overseas travel, the industry will not revive.
We hope to have a foothold for revival by around summer vacation. We are considering a variety of promotions, and we would like to ensure a certain trend of recovery in the second half of the year, and by 2024. However, it is difficult to state clearly when the former figure of 20 million overseas travelers will be reached.
The challenges facing the industry include labor shortages and, in the medium to long term, the need to secure future human resources. Travel agencies, accommodations, and transportation agencies have not been able to respond to the rapidly recovering market. For example, they are unable to accept reservations even if they have available rooms, and they lack drivers even if they have buses. Rebuilding a system to accept new manpower is an urgent issue.
The first is to create an environment in which businesses can recruit with peace of mind. The companies have borrowed a large amount of money after the Corona disaster, and they cannot resume hiring without prospects. To this end, we request that the government continue to support nationwide travel and review the new Corona 5.
The second is the Digital Transformation (DX) initiative to standardize and DX operations that are not directly related to the competitiveness of each company. Until now, travel agencies have had to manually assess and respond to emergencies and other situations, but DX on the part of lodging companies will facilitate the centralized management and sharing of information. This initiative is already underway, and is scheduled to be put into practice in the early part of this year.
In terms of securing future human resources, the company will also work to secure human resources by promoting the fact that the travel industry remains at the heart of Japan’s growth industry.
After three years of the world’s Corona Disaster, the state of tourism is changing, with changing values and a desire for safe and secure added value. Under such circumstances, experiences that cannot be arranged by individual travelers are the realm of travel agencies, and we will work to develop travel products unique to Japan, such as farm stays, Japanese heritage, and workcations, as well as adventure tourism in cooperation with JNTO.
This year’s Tourism Expo Japan 2023 will be held in Osaka, and we hope to use the event as a catalyst for the Osaka-Kansai Expo in 2025, as well as the World Masters in 2027 and the opening of the IR around 2029.
© Source travel watch
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