TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
November 14, 2014 2:00 pm JST
Japan's ticket shops, hotel search sites reach out to foreign tourists
TOKYO -- Discount ticket shops and accommodation websites in Japan are turning their
attention to meeting the needs of foreign tourists.
Earlier this month, the Japan Ticket Association, a ticket broker trade group, teamed up with
Spanish ticket site operator Ticketbis. Through the tie-up with Ticketbis, which operates in about
30 countries, the association plans to sell tickets to concerts and sporting events in Japan to
overseas tourists.
Ticketbis does business around the world in several languages. In October, the company set
up a branch in Tokyo called Ticket Experience. A company executive said he wants to cooperate
with companies in the tourism and event businesses to make it easier for foreign tourists to enjoy
events in Japan.
Tomareru operates the Tomarina website, which arranges stays at private homes and farms.
It is preparing to offer a new service that will allow foreign tourists to stay in vacant houses in
some parts of Tokyo and neighboring Kanagawa Prefecture.
U.S. online company Airbnb connects those who want to rent out rooms or homes to tourists
looking for a place to stay. Tomareru aims to offer a similar service in Japan.
According to data from the Japan National Tourism Organization, 9.73 million overseas
travelers entered Japan in the nine months through September, up 26% from a year ago. For
July through September, they spent 158,257 yen ($1,358), on average, during their time in the
country, up 12.7% from a year earlier, figures from the Japan Tourism Agency showed. (Nikkei)
November 16, 2014 2:00 am JST
Japan to cut patent fees by up to 10%
TOKYO -- The Japan Patent Office plans to cut patent application and maintenance fees by up to
10% or so, making it easier for domestic companies to lock down intellectual property rights,
sources said Saturday.
The change is expected to take effect sometime in 2015. The government agency will also
consider lowering trademark-related fees.
The Patent Office sees the cuts as a way to help Japan Inc. boost its international
competitiveness. A growing number of companies from emerging markets, such as China, are
getting the upper hand by snagging patents and trademarks before rivals from Japan and other
countries.
Each year, some 320,000 patent applications are filed in Japan -- the third-highest total
globally. But the No. 1 spot belongs to China, where 820,000 applications are submitted
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
annually.
The Patent Office plans to submit a bill to the Diet, Japan's parliament, next year. The
legislation would revise the patent law and pave the way for lowering fees. The reduction would
be the first since 2008.
Patent application fees are currently set at 15,000 yen ($128) per request. The agency is
thinking about lowering the price by about 1,000 yen.
Annual patent maintenance fees rise with time. They are currently set at 2,300 yen per
patent for the first three years, then 7,100 yen for the three years thereafter. Those prices are to
be cut by around 10%.
The fees add up. Hitachi and Panasonic, for example, each file about 10,000 patent
applications annually. And they each hold about 60,000 patents. This means that over the course
of 10 years, they both end up paying a total of around 15.1 billion yen for patent application,
maintenance and other related costs.
The planned cuts in patent fees would save Hitachi and Panasonic some 1 billion yen each
over a decade. (Nikkei)
November 17, 2014 4:28 pm JST
Pacific bluefin tuna, American eel listed as endangered species
Photo: Pacific bluefin tuna © Courtesy of IUCN
TOKYO (Kyodo) -- The International Union for Conservation of
Nature on Monday added Pacific bluefin tuna and American
eel to its new "Red List" of species at risk of extinction.
The Switzerland-based organization, known as the IUCN,
said those species are at risk mainly because of overfishing
aimed at the Japanese market. Japan is the world's biggest consumer of tuna, which is a popular
ingredient for sushi, and eel is also popular among Japanese consumers.
Parties to the Convention on International Trade in Endangered Species of Wild Fauna and
Flora, known as the Washington Convention, are scheduled to hold a conference in South Africa
in 2016.
The IUCN's Red List of Threatened Species, while in itself not legally binding, serves as a
key reference for parties to the Washington Convention when designating threatened species for
international trade restrictions.
The IUCN, which had earlier said it was not concerned about the Pacific bluefin tuna going into
extinction, now says the species is "Vulnerable," -- the worst stage for species at risk of
extinction.
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
The organization says the species' population is estimated to have declined by between 19
percent and 33 percent over the past 22 years to meet demand for sushi and sashimi primarily in
Asia.
The international body designated American eel as "Endangered," the second worst in the
three stages, noting that the species is declining in population due to habitat loss, climate change,
overfishing and physical barriers that prevent its migration in water.
The decrease in Japanese eel has created greater demand for American eel, leading to
reports of poaching of the American eel in the United States, it said.
November 17, 2014 12:47 pm JST
GDP hit hard by household spending
Photo: A family chooses a toy for their baby at Tokyo Station in
Tokyo on Nov. 13. © AP
TOKYO -- Japan's economy contracted for the second straight
quarter in July-September, due to weak demand at home and
abroad. The Japanese government is now confronted with a
failure to achieve a V-shaped recovery.
The sales tax hike in April reduced real income for households, which led to purse string
tightening. As a result, consumer spending has been sluggish.
Corporate Japan has marketed its products and services in overseas markets, and
developed production sites abroad. The rise in Japanese exports has been slow and has failed
to contribute to gross domestic product growth.
Cabinet Office officials have expressed since the summer their distress over weak consumer
spending. But the weakness should come as no surprise. Spending at households with two or
more family members for the three months through September fell 0.5 % from the previous
quarter on a seasonally adjusted basis, according to the Ministry of Internal Affairs and
Communications. Consumers must have used up all the stockpiled household goods and other
products from before the tax hike. Nevertheless, spending has remained flat.
The country's inflation put brakes on consumer spending. It was caused by the April tax hike,
rising import prices because of the yen's slide, high vegetable prices and other factors. Japan's
consumer price index, excluding imputed rents of owner-occupied dwellings, was up 4.0% on the
year. Real wages were down 2.5%. Even with companies' wage hikes hitting 15-year high and
summer bonuses rising, households still cannot catch up with the increasing prices. Spending at
restaurants also decreased, showing Japan now faces a budget-conscious consumer mindset.
Miscalculation: The domestic demand drop was to some degree expected. Sales tax had not
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
increased for 17 years before April. The surprise was that the country's exports did not increase
as the yen depreciated against other currencies. Exporters and other companies are expected to
report record pretax profits in the year ending March 2015, although real exports in the
July-September quarter rose only 1.3% on the quarter.
Domestic production declined after the 2008 global financial crisis, which helped push the
yen to around 80 against the dollar. The automobile industry, which accounts for 20% of Japan's
exports, is shifting production overseas rapidly. Solid supply to the North American market this
year has been covered by production in Mexico and other countries. Given that electronic parts
and device shipments for exports have risen 6.0%, sluggish car export growth, even with the
weaker yen, was the biggest miscalculation.
Domestic and foreign demand miscalculations are likely to be corrected by the Japanese
government. In order to achieve the Cabinet Office's July projection of real GDP growth of 1.2%
for fiscal 2014, the economy will have to expand 3.1% in the October-December and
January-March quarters. It will be difficult to achieve that goal. Tokyo will likely to draft a
supplementary budget for fiscal 2014 to prop up the economy.
Negative GDP in the July-September quarter was pushed down by corporations liquidating
their inventories. If they can keep down their inventories, production will be more closely related
to demand. (Nikkei)
November 19, 2014 1:00 pm JST
Japan's import-dependent industries feel currency woes
TOKYO -- Sharp declines in the yen mean the continued
danger
of
bankruptcy
for
Japanese
import-dependent
industries.
A Teikoku Databank survey revealed that corporate
bankruptcies due to the sliding yen were highest in October,
since the survey began in January 2013. The Japanese
currency's fall has brought increased prices for raw materials
and other imports, driving small and midsize companies into
troubling conditions. The Japanese research company said that
raw material prices remain high, striking a blow to the financial
health of many businesses.
The number of companies with liabilities of at least 10
million yen ($85,056) that filed for bankruptcy in October due to
the yen depreciation soared 120% on the year to 39, according
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
to Teikoku Databank. The worst performers by industry include food producers, clothing makers
and daily goods makers, all of which rely heavily on imports for raw materials.
Currency-affected corporate bankruptcies for the January-October period surged 180% on
the year to 259, on a cumulative basis. There is no telling what will happen to small and midsize
companies, according to Teikoku Databank, as these businesses cannot pass on the increasing
costs of the yen's depreciation onto customers.
The yen began to rapidly fall against the dollar in August. The Bank of Japan's recent
announcement of its additional quantitative easing briefly pushed the yen down to the 115 mark
against the greenback on Nov. 6, before sending it to the 116 mark on Nov.14 -- its lowest since
October 2007.
A weak yen benefits exporters, such as major automakers and electronics makers, but it
hurts importer earnings, because it triggers greater costs for raw materials and gasoline, as well
as increased electricity rates.
Increased public works projects are helping keep the overall number of bankruptcies at the
lowest level since the bubble period. Corporate bankruptcies among companies with liabilities of
at least 10 million yen fell 16.5% on the year to 800 in October, the smallest number for the
month since 1990, according to the data released by Tokyo Shoko Research. Total liabilities
dropped 20.1% to 124.1 billion yen.(Nikkei)
November 19, 2014 7:05 am JST
Japan's stimulus to focus on consumption over public projects
TOKYO -- The government will likely cut back on economic stimulus in the supplementary
budget for this fiscal year, focusing primarily on boosting consumption and employment in
regional economies.
It is considering allocating about 2 trillion yen to 3 trillion yen ($17 billion to $25.5 billion) for
stimulus measures -- down significantly from the 10 trillion yen of fiscal 2012 and the 5.5 trillion
yen of fiscal 2013.
"We get more results for less by spurring consumption rather than pouring massive amounts
of money into public projects," a government source says. The government is ramping up
preparations for vouchers, fuel subsidies for low-income households, and other measures.
Prime Minister Shinzo Abe also mentioned job creation at an economic policy meeting
Tuesday. The stimulus measures could include support for new businesses outside metropolitan
areas and for telework.
Drafting of the supplementary budget will begin after the Dec. 14 lower house election.
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
Members of the ruling Liberal Democratic Party could grow more sensitive to voter demands and
push to boost government spending.
LDP members with close ties to the agricultural sector drew up a list of stimulus demands
Tuesday, including assistance for a fishing industry suffering from high fuel prices and for
horticulture. These were no doubt an attempt to win support in the upcoming election.
(Nikkei)
November 20, 2014 7:15 am JST
Soft yen luring foreigners in record numbers
TOKYO -- Roughly 11.01 million foreign tourists visited Japan between January and October, up
27% on the year, according to figures announced Wednesday by the Japan National Tourism
Organization.
The depreciating yen has made a trip to Japan more affordable, and flights and cruises to the
country are increasing. Furthermore, Japan expanded its tax-exempt shopping policy for those
holding foreign passports.
In October alone, 1.27 million visitors came from overseas, the most in any month since such
statistics began in 1964, and a 37% rise from a year earlier. A long holiday in China from Oct. 1-7
spurred many Chinese to visit Japan, eager to shop duty-free. In all, 220,000 Chinese visited that
month, 84% more than last October. And the number of Korean tourists jumped 58% to 250,000,
despite the impact of the Korean ferry disaster on travel.
The Japanese government is loosening visa requirements on Southeast Asian countries to
make Japan easier to visit.
Tokyo's policy of tax-exempt shopping for foreigners now covers not only home electronics
and clothing, but makeup, food and drinks as well. The expansion of duty-free shopping "was
effective in increasing visitors to Japan," said Shigeto Kubo, commissioner of the Japan Tourism
Agency.
(Nikkei)
8:43 pm, November 20, 2014
2014 Lower House Election / Abe seeks reduced tax rates in 2017
Prime Minister Shinzo Abe has said he will seek to introduce reduced
consumption tax rates on daily necessities and other items at the same time
the tax rate is increased to 10 percent in April 2017.
In an interview Wednesday with The Yomiuri Shimbun, Abe said he would
make the plan a shared campaign pledge between the ruling Liberal
Democratic Party and its junior coalition partner Komeito for the next House
of Representatives election.
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
The LDP’s Research Commission on the Tax System will consider what items should be subject
to reduced rates. Commission Chairman Takeshi Noda and Komeito deputy leader Kazuo
Kitagawa met at the Diet building on Wednesday and agreed the two parties would aim to
introduce reduced consumption tax rates in April 2017.
A draft for campaign promises based on the agreement stipulates that, with the aim of
introducing reduced tax rates in fiscal 2017, the two parties will quickly make concrete
discussions on such issues as the list of items subject to reduced tax rates, sectional accounting
and stable financial resources, according to sources.
“They’re apparently discussing making the issue a common election pledge if the experts come
to an agreement,” Abe said during the interview.
The two parties agreed at the end of last year that reduced consumption tax rates would be
introduced when the tax rate was 10 percent, and Komeito called for introducing the reduced
rates at the same time the tax rate was to be hiked to 10 percent in October 2015. But the LDP
was reluctant, saying it would be difficult to design the system in time.
Abe announced he would delay the planned second consumption tax hike for about 1½ years,
which resolved the time constraints. The government and the ruling parties reportedly are
considering including a plan to introduce the 10 percent consumption tax rate along with the
reduced tax rates in a tax system reform outline for fiscal 2015.
Regarding the items subject to reduced tax rates, Abe said, “That’s a technical subject, so I’d like
the Research Commission on the Tax System to discuss the issue.”
Meanwhile, there are concerns that delaying the second hike in the consumption tax rate will
lead to insufficient financial resources for social security reforms.
Abe said, “I emphasize child-rearing support,” suggesting he would start a new child-rearing
support program in April 2015 as initially planned. But he added: “We can’t do everything on the
menu to improve social security systems. We will closely examine tax revenues.”
Abe also stressed that the government would firmly maintain its goal of restoring fiscal health:
“The government will overcome deflation and increase tax revenues while we will carry out
thorough administrative and financial reforms. We will promote efforts to make the nation’s social
security more efficient and rationalized.”
As for economic policies the government will compile before the end of this year, Abe said he
would emphasize boosting consumer spending and raising the levels of regional economies.
“The economic policies will include such measures as supporting inventive measures taken by
different municipalities, vitalizing regional economies through supporting local specialties and
other measures, and establishing an emergency response system such as disaster
reconstruction,” Abe said. (The Yomiuri Shimbun)
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TOKYO SKY TREE
Weekly News From Tokyo
DITP TOKYO (2013 April13 – April19)
14 Nov. 2014 ~ 21 Nov. 2014
(No.201446)
November 21, 2014 6:08 am JST
Exports finally pick up as soft yen curbs prices
TOKYO -- Japanese exports are increasing as the impact of the falling yen finally starts to
emerge via lower prices for goods sold overseas.
The Cabinet Office said Thursday that the seasonally adjusted export volume index for
October came to 92.7, up 2.2% from September and the second straight month of gains. The
index hit its highest level since June 2012. The benchmark of 100 is set at 2010 levels.
Export value last month rose 9.6% on the year, faster than the 2.7% increase in imports,
according to the Finance Ministry. And the trade deficit -- imports minus exports -- shrank 35.5%
on the year to 710 billion yen ($5.95 billion).
The volume index shows shipments to all three major destinations -- the U.S., the European
Union and Asia -- rose month to month for the first time in a year.
Shipments to Europe were sluggish until September, but jumped 9.5% in October on brisk
automotive demand. U.S.-bound exports edged up 0.7% on growing shipments of goods such as
autoparts. Exports to Asia increased 0.5%, bolstered by strong demand for semiconductors.
The yen has weakened significantly over the past two years due to the bold monetary easing
by the Bank of Japan, but many Japanese companies, eyeing profitability, were hesitant to cut
prices in overseas markets. After the yen's most recent slide, however, some have relented.
The export price index compiled by the Bank of Japan, which measures how much exports
cost in overseas markets, declined 1.7% on the year in October to 97.5, the lowest since July
2009. The subindex for electrical machinery dipped 3.9%, and that for metal materials and
products dropped 3.3%.
With
lower
prices
boosting
sales
abroad
as
Japanese
firms
undercut
rivals,
electronic component exports rose 8.7% in value from a year earlier, and steel saw an 11.8%
increase, driving the overall growth of 9.6%.
"The price competitiveness from the softer yen is finally being reflected in exports," said
Yasunori Miwa, head of the Itochu Economic Research Institute.
Although sluggish economies in Europe and elsewhere were also weighing on Japanese
exports, the outlook is improving. The International Monetary Fund sees global exports growing
5% in 2015, faster than the 3.8% expansion projected for this year. The brisk U.S. economy is
driving the surge in exports from Asia as a whole.
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(Nikkei)