A MARKETING PLAN
FOR JAPAN
Prepared by: The Philippine Japan Team
JAPAN OUTBOUND TRAVEL
Prepared by: The Philippine Japan Team
WHY TARGET JAPAN?
ECONOMIC POWER
• It is the world’s second largest economy
(US$5.465 Trillion). It is a rich country with
enormous personal savings.
• It has one of the highest per capita GDP in the
world US$28,000 in 2003 (estimated)
• Real GDP growth of 2.5% in 2003
WHY TARGET JAPAN?
• Japan is one of the biggest sources of the world’s outbound travellers and
the biggest tourism spenders.
WORLD’S TOP TOURISM SPENDERS 2002
90
79.9
80
70
60
58.0
50
40.4
40
30
61.4
53.2
26.7
24.1
20
13.3
15.4
20.2
7.6
10
7.1
0
USA
Germany
UK
Japan
China
Korea
Int'l. Tourism Expenditure (in US$ Billion)
Outbound Travel (in Million)
* USA figures exclude outbound to Canada and Mexico
Source: WTO Tourism Highlights 2003
DOT Foreign Offices
WHY TARGET JAPAN?
STRONG RP-JAPAN RELATIONS
• The Philippines has close historical ties and a strong,
vibrant relationship with Japan in trade, business,
investments and tourism.
• The 2nd largest investor in the Philippines, representing
37% of total foreign Direct Investment for the Philippines.
• The top Official Development Assistance (ODA) donor
country – No. 1 source of external development funds.
• 2nd largest export market of Philippine products.
• Consistently the 2nd largest source market for tourism
for the past 10 years averaging 19-21% share of total
visitor arrivals.
JAPAN OUTBOUND TRAVEL
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Japanese outbound travel dropped 19.5% to
13.3 M in 2003 in the aftermath of SARS (far
larger decrease than that following the 1991
Gulf War and the 9/11 in 2001).
Proportionate decline in average expenditure
per traveller from ¥309,100 in 2000 to ¥271,000
in 2003.
JAPAN OUTBOUND TRAVEL
Total Japan Outbound Travel Market & Expenditure
(8.93% )
(9.13% ) (0.64% )
17,819
(3.49% )
(-9% )
16,695 16,803
(12.66% )
(-5.93% ) 16,358
16,215
15,298
15,806
19,000
17,000
15,000
(1.93% )
16,528
Total Expenditure per Trip
Per Pax
(-19.53% )
13,300
13,579
13,000
11,000
9,000
7,000
5,000
3,000
1,000
-1,000
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
¥
US $
Not available
404,000
4,299
361,000
3,318
331,000
2,737
327,000
2,496
326,000
2,861
309,000
2,867
296,000
2,435
293,000
2,339
271,000
2,338
2000 was the peak year for Japan outbound travel, due to 2 consecutive years
of strong yen and income growth.
• SARS had the greatest impact on Japan outbound travel, bringing it down to
lower than 1994 levels.

Source: JTB Report 2004
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Point of Origin
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Hokkaido
Majority of Japanese
travellers are from
Greater Tokyo,
Kinki/Kansai, and the
Tokei Regions. In terms
of prefectures:
Tokyo/Kanagawa, Osaka
and Aichi (in that order).
Tohoku
Koshin-etsu•Hokuriku
Chugoku
Kanto
(Greater Tokyo)
Tokai (Aichi)
Shikoku
Kyushu
Okinawa
Kinki
(Osaka)
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Overseas Destination
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
•
•
Inspite of SARS in 2003, China remains Japan’s top
overseas destination with 16.95% market share of total
outbound travel.
Top 3 destinations in 2003 (2000)
* China
* Korea
* Hawaii
•
2.250 M (2.202 M)
1.802 M (2.472 M)
1.324 M (1.856 M)
None of the markets in 2003 recaptured 2000 levels. All
regions infected with SARS suffered major declines.
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Gender
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Majority of Japanese travellers in 2003 is male. Both
male (7.61M) and female (5.69M) markets decreased in
2003. The female market continues to drop (for 3rd
consecutive year) due to safety/security concerns.
Men in their 30’s have overtaken women in their 20’s
(segment with the most rapid growth in 2000) as the
largest market segment in 2003.
Departure ratio
(including repeat travellers) for men in their 40’s is the
highest. Remarkable decline in the elderly market (men
over 60 and women over 50).
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Spend
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
•
Total overseas travel expenditure per trip per person is
¥271,000, little change over the years.
•
Middle aged women spent the most on shopping
(¥98,000).
•
Elderly women are the biggest spenders with ¥347,000,
followed by middle-aged women (¥324,000), and elderly
men (¥317,000). Least spenders are single men and
women.
•
The highest travel expenditure is for overseas
study/school trips at ¥483,000.
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Purpose of Travel
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Japanese travel primarily for tourism, 80% to
Guam/Saipan and Hawaii for sightseeing,
natural/scenic attractions, shopping, R&R.
Business Travel is increasing, especially to
China. VFRs remain strong (U.S. Mainland and
Canada).
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
Breakdown of Japan Tourism Market into Activities in Destinations
Tourism
Sightseeing
Natural
attractions
Shopping
Honeymoon
Gourmet sampling
VFR
Art galleries & museums
Rest & Relaxation
Business
Swimming
Total Japan
Outbound
2000 = 17.8 M
2003 = 13.3 M
Trainings/
inspection
trips
Theme Park
Golf
Scuba Diving
Overseas study /
school trips
Other Sports
Wedding ceremony
Attendance in
meetings
Theatrical performances / concerts / movies
Night Tour
Others
VFR
No answer
Gambling
Others
Historical
attractions
Cultural
attractions
PROFILE OF THE JAPANESE OUTBOUND TRAVELLER
By Type of Travel Arrangement
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Package Tours is the most common type of
overseas travel (46% from 50.8% in 2000) BUT
individually arranged (FIT) type of travel (42.1%
from 34% in 2000) will increase, especially via
the Internet which had a phenomenal growth.
Predominantly mono destination in travel
format.
THE JAPANESE OUTBOUND TRAVEL MARKET
SUMMARY OF FINDINGS
(2003 JTB SURVEY)
Security concerns, while declined slightly still
continue to be the biggest factor hindering
travel. “Costs too much” rises. Language has
become less of a concern.
THE JAPANESE OUTBOUND TRAVEL MARKET
CONCLUSION
Inspite of its economic downturn, decreasing
volume of outbound travel, and decreasing
travel expenditures, Japan remains a huge
market for tourism and travel. JTB’s 2004
forecast remains high at 16.5 M outbound
Japanese!
THE JAPANESE TRAVELLER TO THE WORLD
2003
Predominantly Male (30-39’s)
 Travels by Package Tours
 mono destination
packages
 Books thru a travel firm
 Travels 5-7 days usually in
April / May (Golden Week)
or November / December
 Mostly come from Tokyo
using Narita Airport
•Motivated to travel
primarily by “desire
to visit a destination”
 Usually gets his
travel information from
reading pamphlets
 Favorite Destinations
China
Korea
Hawaii
 Travels primarily for
Tourism
 Favorite Activity in
Destination is
viewing natural /
scenic attractions
followed by shopping
Travels with friends
and relatives
 Spends an average
of ¥ 271,000, mostly
on shopping
JAPAN OUTBOUND TRAVEL
Total Japan Outbound Travel vs. Japan Arrivals To The Philippines
18,000
16,695
16,000
17,819
16,803
16,358
16,215
15,806
15,298
Legend:
16,528
14,000 13,579
Japan
Outbound
(in millions)
13,300
Japan
Inbound to
the Phils
12,000
10,000
8,000
6,000
390,517
4,000
2,000
277,825
323,199
350,242 376,714
387,513
343,840
361,631
341,867
322,896
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Source: JTB Report 2004
PHILIPPINE MARKET SHARE OF JAPAN OUTBOUND
TRAVEL 2000/2003
Total Japan Outbound Travel vs. Japan Arrivals To The Philippines
Legend:
Japan outbound
travel
180
Japan arrivals to
the Philippines
160
17,819M
140
13,300M
120
Total Philippine Arrivals vs.
Japan Arrivals To The
Philippines
100
200
180
80
160
1,992,169
1,907,226
140
120
60
100
80
60
40
20
40
390,517
(2.19%)
0
2000
20
322,896
(2.43%)
2003
…but Japan remains largely underpenetrated
390,517
(19.60%)
0
2000
Legend:
Total Philippine
Arrivals
322,896
(16.93%)
2003
Japan arrivals to
the Philippines
Sources: DOT Statistics and JTB Report
PHILIPPINE MARKET SHARE
OF JAPANESE OUTBOUND TRAVELLING FOR TOURISM
2000/2003
Total Japanese Travelling for Tourism vs. Japan Arrivals To The Philippines for Leisure
Legend:
200
180
160
11,332,852
140
8,389,984
120
100
80
60
40
20
0
250,848
(2.21%)
2000
189,308
(2.26%)
Total Japanese
Travelling for
Tourism
2000 : Nearly 80%
visit Guam,
Saipan and Hawaii
Japan arrivals to
the Philippines
for leisure
2003
Source: DOT Statistics and JTB Report
PHILIPPINE MARKET SHARE
OF JAPAN ARRIVALS TO ASEAN
1998-2004
Total Japan Arrivals to ASEAN vs. Arrivals to the Philippines
1998
1999
2000
2001
2002
2003
2004
Jan-Apr
Thailand
986,264
1,071,482
1,206,549
1,177,599
1,239,421
1,042,349
-
Singapore
843,683
860,661
929,887
755,766
723,431
434,036
174,598
Indonesia
469,409
606,102
662,045
611,314
620,722
548,630
-
Malaysia
252,178
286,940
455,981
397,639
354,563
213,527
100,473
Philippines
361,631
387,513
390,517
343,840
341,867
322,896
128,528
200
Vietnam
95,258
113,514
152,755
204,860
279,769
209,730
94,102
180
160
3,858,391
2,896,134
140
Laos
12,936
14,860
20,687
15,547
19,801
17,766
-
Cambodia
13,386
17,885
19,906
17,952
96,796
88,401
40,298
120
100
80
60
40
Myanmar
20,525
17,014
16,096
20,118
20,744
18,799
7,680
20
390,517
(10.12%)
2000
Brunei
Darussalam
TOTAL
6,639
3,061,909
3,172
3,379,143
Ranking based on 2000 figures
3,968
3,858,391
2,033
3,546,668
2,251
3,699,365
2,896,134
545,679
322,896
(11.15%)
0
Legend:
Total Japan
Arrivals to
ASEAN
2003
Japan arrivals to
the Philippines
Sources: DOT Statistics and ASEAN Secretariat
THE JAPANESE TRAVELLER TO THE PHILIPPINES
2000 / 2003
 Predominantly MALE (45-54’s)
 Mostly MARRIED
 Travels ALONE
 Spends an average of
US$ 133.89 DAILY
 TRAVELS primarily for HOLIDAY
 INDEPENDENT traveller
 Usually a PROFESSIONAL /
BUSINESSMAN
 Usually a BUSINESSMAN
 Spends an average of
US$ 79.80 DAILY
 Earns an average of US$ 62,949.43
annually
 Earns an average of US$ 63,698.99
annually
 HAS a university / college
DEGREE
 Prefers a HOTEL as type of
ACCOMMODATION
 Majority traveled in AUGUST and MARCH
 Majority traveled in DECEMBER and
AUGUST
 Most are REPEAT VISITORS
 Stays an average of 6.37 NIGHTS
 Stays an average of 6.48 NIGHTS
 Is predominantly MOTIVATED BY
WARM, FRIENDLY PEOPLE
Legend:
• 2000 & 2003 data • 2000 data
• 2003 data
Sources: Phil. Annual Visitor Sample Survey 2000 & 2003
DOT Statistics 2000 & 2003
CONCLUSIONS
• Japan has consistently been our 2nd
largest source market for tourism yet it
remains largely underpenetrated.
CONCLUSIONS
MARKET
• We have been tapping market segments like golf and diving which make up small
segments of the tourist traffic from Japan.
• Huge untapped tourism (leisure) market for
 Shopping
Viewing Natural / Scenic Attractions
We have always been a MARKET FOLLOWER, never a MARKET
LEADER OR TREND SETTER.
PRODUCT
• We have the product attractions but few are ready for the market in terms of
infrastructure and services
• Low awareness about product offerings
• No / Few new product offerings since 5/10 years ago.
PRICE
• Still competitive but becomes expensive when viewed in terms of value or content
PROMOTIONS
• Weak indistinct image, low awareness, largely overlooked product resulting in low trial
• Lack of / absence of special / sale promotional offers
• No advertising
• Inconsistent, unsustained PR activities; lack of “good news” on the Philippines.
• Lack of appropriate collaterals in Japanese. Inefficient distribution.
DISTRIBUTION
• Travel wholesalers lack incentives to mobilize
BUDGETS
• Widely dispersed use of available tourism budgets
CONCLUSIONS
• Japan needs a ONE-COUNTRY APPROACH considering
its importance to the Philippines not only for tourism but
for trade, business, investments, socio-cultural exchange.
• While the DOT concentrates on the tourism segment,
other government agencies can help increase
Japanese arrivals to the Philippines for the following
strong market segments:
 Business Travel
 VFR’s
 Elderly Market
-
DTI/BOI et al
DFA/DOLE/OWWA
PRA
CONCLUSIONS
DOT MUST FOCUS,
• We need to identify the market segment of
Japan’s outbound travel that remains
largely untapped, has the highest potential,
and whose needs we can meet; and focus
on it our marketing/promotions efforts and
resources.
WE FOCUS ON THE JAPANESE WOMEN 30’s-50’s MARKET SEGMENT
4.354 M IN 2003 (3.05 for Tourism)
JAPANESE WOMEN
AGE
20-29
30-39
40-49
50-59
GENERAL
CHARACTERISTICS
TOTAL
OUTBOUND 2003 •Makes the decision on
1.623 M
1.234 M
.630 M
.867 M
 Single
Women - 15-29’s
- 30-44’s
Travel with friends
and relatives
 Married
Women - Employed
- Housewives
Travel with husband
 Middle-Aged
Women
PREFERRED STYLE
OF TRAVEL
•Travels abroad as
where to travel
long as possible,
even if infrequently.
•Travels primarily for
• Less interest on
TOURISM (especially
historical sites, more
single females)
on NATURE and scenery.
• SHOPPING is primary
•
Relaxes at just one
activity in destination
(especially 15-29 singles or two destinations.
• Wants to visit a different
and housewives)
place each trip.
• High interest in
• Stays at any hotel as long as
natural/scenic
has basic amenities.
attractions and
• Eats at restaurants where
gourmet sampling
locals eat.
• Uses PACKAGE TOURS • Visits famous destinations.
(especially married
• Participates in a convenient
package tour.
women)
• Makes many purchases
(Group travel is strong
and souvenirs for family
for 30-44 singles)
and friends.
• Prefers FREE-TIME
Package tours
• Has very strong desire
to travel overseas
(especially married
women)
COMPETITORS FOR
THIS MARKET:
Single
Women - Europe
- East Asia
(Korea/Taiwan,
HK)
- ASEAN
(Thailand,
Indonesia,
Singapore,
Malaysia)
Married
Women - East Asia
(Korea/Taiwan,
HK)
- ASEAN (Thailand,
Indonesia)
- Hawaii (Saipan)
(especially
housewives)
- Europe (for
employed
Middle
Aged
- Europe
WE FOCUS ON THE JAPANESE MALE
(MARRIED & MIDDLE-AGED) MARKET SEGMENT
4 M in 2003 (2 M for Tourism**)
Married Men =
(Between 15-44)
2M
Middle Aged Men = 2 M
(Between 45-49)
_______
4 M*
GENERAL
CHARACTERISTICS
PREFERRED STYLE
OF TRAVEL
• 46 % Travels for TOURISM
• 30% for BUSINESS
• Majority are Repeat
Travellers
Both segments are big
spenders at ¥287,000 for
Middle Aged Men and
¥283,000 for Married Men.
Main motivation to travel
is to take a holiday.
Married Men, in particular
want to visit a specific
destination.
Married Men travel with wife
(34%) or fellow employees
(20.5%)
 Middle Aged Men travel alone
(35.3%) or with fellow
employees (22.2%).
Travels abroad as long as
Married
possible, even if infrequently
Men
 Enjoyment of “nature and
scenery” ranks first
 “Rest and Relaxation” a
strong preference with married
men
High interest in shopping
Middle
(for married men) and
Aged
gourmet sampling
(for middle-aged men).
Interest in Night Tours.
Eats at restaurants where
locals eat
 Visits a different place each
trip
Middle Aged Men opt for
individually arranged travel;
Married Men use either package
tour or individually arranged travel.
Married Men who use package
tours prefer the FREE TIME
package. Middle Aged Men
use either full package or
FREE TIME package tour; both
book through a travel firm, but
Internet usage increasing
COMPETITORS FOR
THIS MARKET:
- US East Coast
- Indonesia/
Malaysia)
- Guam / Saipan
- China/Taiwan/
Hong Kong
- Thailand/
Singapore
- Germany
* Based on % of Married Men (13.8%) and Middle Aged Men (13.3%) among total respondents of JTB Factual Survey
of the Overseas Travel Situation; applied to Japan’s Total Outbound of 13.3M.
**Based on 46% of Total Male Market segment travelling for Tourism in 2003.
JAPANESE OUTBOUND TRAVEL MARKET
1. Japanese outbound travel is almost 50/50 male/female.
2000
2003
Male
:
9,536,000
7,606,000
Female
:
8,284,000
5,690,000
2. The female 20-29’s segment ruled overseas outbound travel for over 13
years but was overtaken by the male 30-39’s in 2003 due to security/
concerns.
3. Over a 14-year period (1990-2003), the female 30-39’s segment is
the only one steadily increasing its market share. All other segments
have decreased/increased market share according to market
forces. (economy, safety/security concerns).
4. Men in their 30’s have overtaken women in their 20’s (segment with the
most rapid growth in 2000) as the largest market segment in 2003.
JAPANESE OUTBOUND TRAVEL MARKET
JAPANESE OUTBOUND TRAVEL MARKET
1. Higher percentage of women travelling
for tourism than male.
2. Over 70% of all groups of women (except
students) travel for tourism.
3. About 46% of married men and middle
aged men travel for tourism; about 30%
travel for business.
JAPAN OUTBOUND TRAVEL 2003
By Purpose of Travel By Market Segment
%
MALE
FEMALE
Students
Single
Married
Middle
Aged
Elderly
Students
Single
15-29
Single
30-44
Married
(employed)
Married
(housewives)
Middle
Aged
Elderly
Tourism
57.1
71.2
47.0
45.2
59.2
63.3
72.6
72.9
69.1
68.3
74.9
80.4
Business
-
12.3
27.5
31.4
10.8
-
1.7
4.8
2.4
0.5
2.6
0.3
Honeymoon
1.1
-
13.2
0.3
0.3
-
-
-
12.4
13.6
0.5
0.3
VFR
7.7
8.0
2.9
7.2
8.4
8.3
8.8
10.0
8.6
11.1
11.5
7.2
Training /
Inspection
Trips
6.6
4.1
2.3
3.6
3.5
5.3
2.7
1.3
0.7
-
0.9
-
Conference
Attendance
6.6
0.8
1.2
1.8
1.9
1.2
1.0
-
0.3
-
0.5
0.3
Overseas
Study /
School Trips
14.3
0.3
0.2
0.2
0.3
16.6
3.4
0.4
0.7
1.0
0.2
-
4.4
2.3
3.1
6.1
9.7
3.6
9.1
6.6
4.8
5.0
6.6
6.5
Others
Source: Japan Tourism Marketing Factual Survey 2004
JAPANESE OUTBOUND TRAVEL MARKET
The Male 20’s, 30’s, 40’s, 50’s market
segments, though all decreased in 2003, total
6.04 M outbound travellers in 2003 (7.46 M at
its peak in 2000).
The Female 20’s, 30’s, 40’s, 50’s segments,
though all decreased in 2003, total 4.4 M
outbound travellers in 2003 (6.4 M at its peak
in 2000).
JAPANESE OUTBOUND TRAVEL MARKET
JAPAN MARKET SEGMENTS TO SOUTHEAST ASIA
(%)
RP
2000
RP
2003
Male Students
15.6
0
15.4
3.4
Female Students
13.1
4.1
12.4
5.2
Single Women (15-29)
19.1
6.1
14.5
3.4
Single Women (30-44)
14.9
8.2
13.0
3.4
Married Women
(employed)
20.5
2.0
14.1
1.7
Married Women
(housewives)
9.8
2.0
15.1
3.4
Single Men
14.7
14.3
17.7
6.9
Married Men
14.9
10.2
15.9
20.7
Middle Aged Men
16.5
36.7
20.7
32.8
Middle Aged Women
14.6
12.2
13.1
1.7
Elderly Men
11.4
2.0
18.6
17.2
9.8
2.0
12.1
0
Elderly Women
Notes:
1. Based on JTB Factual Survey
of the Overseas Travel
Situation covering 2.5M
respondents who took 3.9M
overseas trips in 2000 / 2003
2. Respondents:
Male
Female
No Answer
: 48.2%
: 51.1%
: 0.7%
100.0%
3. Philippines total
in 2000 = 49,000
in 2003 = 58,000 out of 3.9M
BREAKDOWN BY DESTINATION
MALE
MARKET
SEGMENT
H
O
N
G
K
O
N
G
S
I
N
G
A
P
O
R
E
K
O
R
E
A
T
A
I
W
A
N
FEMALE
C
H
I
N
A
T
H
A
I
L
A
N
D
M
A
L
A
Y
S
I
A
I
N
D
O
N
E
S
I
A
P
H
I
L
I
P
P
I
N
E
S
H
O
N
G
K
O
N
G
STUDENT
1.0
4.5
2.9
1.9
1.6
2.5
--
1.3
3.4
SINGLE
8.8
11.4
17.8
17.9
9.6
13.2
18.4
3.8
6.9
S
I
N
G
A
P
O
R
E
K
O
R
E
A
T
A
I
W
A
N
C
H
I
N
A
T
H
A
I
L
A
N
D
M
A
L
A
Y
S
I
A
I
N
D
O
N
E
S
I
A
P
H
I
L
I
P
P
I
N
E
S
2.9
3.4
4.2
1.9
2.3
2.5
2.0
3.8
5.2
15-29
8.8
9.1
8.2
6.8
5.8
7.8
2.0
10.1
3.4
30-44
7.8
1.1
5.0
4.3
6.4
4.9
10.2
5.1
3.4
Employed
14.7
5.7
6.1
4.3
4.2
5.4
10.2
10.1
1.7
Housewives
4.9
2.3
6.6
1.9
2.3
4.9
8.2
6.3
3.4
MARRIED
13.7
14.8
12.5
13.0
11.3
8.8
22.4
22.8
20.7
MIDDLE-AGED
18.6
18.2
14.6
22.8
28.0
23.0
16.3
10.1
32.8
16.7
15.9
0.1
7.4
7.1
9.8
4.1
13.9
1.7
ELDERLY
2.0
8.0
7.2
10.5
13.5
10.8
4.1
5.1
17.2
---
5.7
4.2
6.8
8.0
5.9
2.0
6.3
---