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Massachusetts: Japan's New Gateway to Trans-Pacific Tourism

Discover why Massachusetts is investing in the Japanese tourism market and how it offers direct air service from Tokyo Narita to Boston Logan. With its proximity to downtown, transportation options, and new direct air service, Massachusetts is becoming the newest Trans-Pacific gateway for Japanese travelers. Don't miss the opportunity to tap into this lucrative market!

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Massachusetts: Japan's New Gateway to Trans-Pacific Tourism

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  1. Betsy Wall, Executive Director Japan & New England – America’s Newest Trans-Pacific Gateway Tourism U ~ March 14, 2012 Presenters: Betsy Larkin, Senior Manager, International Marketing, MOTT Shoko Hirao, MOTT Japanese Marketing Representative

  2. International Marketing Program FY2012 United Kingdom Germany Japan France Italy Ireland

  3. International Marketing Program FY2012 • Why does Massachusetts invest in the Japanese Tourism Market? • A Japanese traveler: • Spends more $$ • Fills rooms mid-week • Books 60 days in advance

  4. International Marketing Program FY2012 • Why does Massachusetts invest in the Japanese Tourism Market? • Direct Air Service Begins April 22 • Tokyo Narita to Boston Logan • Japan Airlines codeshare with American Airlines • Boeing 787 “Dreamliner” • Feeder Flights from 9 countries

  5. International Marketing Program FY2012 Boston Logan International Airport Direct Service from 31 International Markets

  6. International Marketing Program FY2012 Boston Logan International Airport Proximity to downtown Transportation New Direct Air Service

  7. International Marketing Program FY2012 Visitation to Massachusetts The Numbers: 2010

  8. International Marketing Program FY2012 International Visitation to U.S. & Mass in 2010 Source: U.S. Dept. of Commerce/OTTI

  9. International Marketing Program FY2012 * Top 15 States for Overseas Visitors Massachusetts is # 7 * Excludes Canada & Mexico. (Source: U.S. Dept of Commerce)

  10. International Marketing Program FY2012 Visitor Profiles & Comparisons: Where international travelers spend (Source: U.S. Dept of Commerce/OTTI)

  11. International Marketing Program FY2012 • Tour Operator • Arranges different services to create and sell a vacation • Receptive Operator • Manages & sells “tourism products” to Tour Operators • Mostly based in the U.S. • “Product” • Accommodations, Transportation, Attractions, Tours, Dining, Entertainment – anything that can be packaged and sold How does the Japanese Market Work?

  12. Tourism “Food Chain” Consumer Travel Agent “Front Person” - sells packaged holidays from tour operators directly to the consumer. International Tour Operator Packages all elements of tour and travel products together and/ or buys packages from Receptive Operators. Sells via travel agents or directly to the consumer. Receptive Operator US-based companies that specialize in packaging services for International Tour Operators. Contract directly with accommodations, transportation, attractions, events, and all amenities. Consolidates billing. “One-stop shop.” Suppliers Lodgings and attractions.

  13. International Marketing Program FY2012 MOTT’s International Goals Increase: • Visitation • Market share • Tour operators • “Product” • Media coverage • Tax Revenue • Jobs = Increased Revenue for MA Tourism Businesses +

  14. International Marketing Program FY2012 Japan – Overview • 2nd largest overseas source of inbound travelers to U.S. (including Guam and other U.S. territories) • U.S. has 20% market share of Japanese outbound • Brand USA has named Japan as a priority market • U.S. ranked #2 behind Italy as a “dream destination”for Japanese travelers…Switzerland, Australia, France not far behind • Japanese strongly influenced by media, guidebooks • Aging population (Source: U.S. Dept of Commerce/OTTI)

  15. International Marketing Program FY2012 Japan – Overview International Travel after Fukushima • March: Overseas travel ↓ 25% • April: “Cheer up Japan, Smile thru Travel” • July: Bookings Overseas ↑ 4.3% • # Japanese travelers who went overseas in 2011 • = ↑ 2.1% • 2012 Outlook: • Overseas travel expected ↑ 5% Source: Japan Assn of Travel Agents

  16. International Marketing Program FY2012 Japan – Overview 2010 • 3.4 Million visitors to U.S. • 1.7 Million visitors to mainland U.S. • →71,000 visitors to Massachusetts • →This is up 87% over 2009 • →2011 numbers not available until June • Market Share to MA in 2010 2.1% • Compare to Market Share in 2007 1.8% (Source: U.S. Dept of Commerce/OTTI)

  17. International Marketing Program FY2012 Japan – Spending in U.S. • $14.6 billion was spent by Japanese travelers in the U.S. in 2010 - 2nd largest market after Canada • (Source: U.S. Dept of Commerce/OTTI) • # 1 overseas source of spending in U.S. • Japanese Yen has gotten stronger as visitation to the U.S. from Japan has decreased since 1990s (Source: U.S. Commercial Service)

  18. International Marketing Program FY2012 NEWJapan Airlines (JAL)/AA Tokyo-Boston Direct Service Starts April 22, 2012 @ 4 flights/week • Boeing Dreamliner • 13.5 Hour Flight •Will shave 6 hours off the time it takes to get to Boston now!

  19. International Marketing Program FY2012 • 4 flights per week from April 22nd ~ May 31st • Daily starting June 1st • 185 passengers each way

  20. International Marketing Program FY2012 Easy connections through Tokyo’s Narita Airport to other major cities in Japan Osaka - 2 airports Nagoya Fukuoka Sapporo Okinawa Sapporo Nagoya Osaka Fukuoka

  21. International Marketing Program FY2012 Easy connections through Tokyo’s Narita Airport to 14 cities in Asia Beijing Hong Kong Shanghai Taipei Busan Seoul Singapore Delhi Bangkok Manila Ho Chi Minh City Hanoi Kuala Lumpur Jakarta

  22. International Marketing Program FY2012 Japan in general • Over 3,000 islands. Four largest islands account for 97% of Japan • Capital =Tokyo, the largest metropolitan city in the world with 13 million residents • Tokyo is half of the size of New York City, and has twice as many people.

  23. International Marketing Program FY2012 • What are Japanese visitors interested in? • Relaxing is not part of their vacations • Beaches and spas don’t attract them • They would like to keep moving all day everyday • Baseball/Red Sox/Fenway Park • Harvard & MIT • JFK & Kennedys • MFA • Shopping! • Lobster and seafood

  24. International Marketing Program FY2012 • Japanese Holidays - 3 major periods • Golden Week - End of April ~ early May. • …During this period, 4 public holidays are observed • Summer Obon holiday - Around August 15th • Year End/ New Years Holiday - most businesses are closed between December 28 and January 3 • Thanksgiving and Christmas are not holidays • Summer vacation for schools is just 1 month in August

  25. International Marketing Program FY2012 • How do Japanese travelers book vacations? • Group travel most common; size = 2-20 people • Combined packages with NYC & Washington, D.C. • Average stay in the US is 8 days • Prefer Japanese-speaking guides (Source: U.S. Dept of Commerce/OTTI)

  26. International Marketing Program FY2012 • Market Demand • Silver market: over age 60 • 40.3 million in 2011 (31.5% of the total population) • Economic power of $800 billion • Life expectancy = long • Silver has time + money • Prefers full package tours (Source: U.S. Embassy, Tokyo)

  27. International Marketing Program FY2012 • Market Characteristics • Establishing relationships with tour operators - you need to built their trust before you can start doing business • Face-to-face meetings are valued • Long-term commitment • Cold calling is not appropriate • Have some of your information in Japanese

  28. International Marketing Program FY2012 • Japanese Market Entry • Get to know Boston-based receptive operators • All hotel contracts are made through NYC or LA-based receptive operators • Tour operators/wholesalers in Tokyo make the final decisions • All tour brochures are created/printed in Tokyo

  29. International Marketing Program FY2012 • Tour Brochures • Tour brochures published 2 X / year • except for seasonal brochures • Kamiki (April~October) • Planned in August/September • Shimoki (November~March) • Planned in March/April

  30. International Marketing Program FY2012 • Japanese Cultural Differences – Hotels • Require rooms with 2 beds, even honeymooners • King-sized bed with pull out couch not acceptable • They require a bathtub • DO NOT attempt to prepare Japanese • breakfast unless you know it is correctly • prepared.

  31. International Marketing Program FY2012 • Cultural Differences – Restaurants • Larger portions of food gives negative impressions; best to cut the portions in half • Fruit is the most popular dessert • Most cakes, cookies ice cream too sweet • Seafood and local cuisine are preferred

  32. International Marketing Program FY2012 • Cultural Differences – • Retail Stores/Museum Shops • Gift giving culture - It is customary to bring gifts back to family, friends and co-workers from a trip • Common to purchase 20 of the • same item and ask for 20 bags • Japanese spend on average twice • as much on souvenirs than other • overseas visitors to the U.S.

  33. International Marketing Program FY2012 Foreign Language Websites www.massvacation.de www.massvacation.jp www.massvacation.fr www.massvacation.it

  34. International Marketing Program FY2012 How Can You Benefit from the Intl Market? Help Us to Help You! • Offer support for FAMs • Keep us informed – news, product, imagery • Info Needed for Trade Shows: • JATA (Japan) - September • World Travel Market (UK) – November • ITB (Germany) – March • International Pow Wow – April • Discover New England Summit

  35. International Marketing Program FY2012 Industry Participation Familiarization (FAM) Tours Trade FAMs Product Managers, Sales & Reservations Staff, Travel Agents, Airline Reps, MICE Reps Press FAMs Travel writers, daily newspapers, monthly glossies, in-flight magazines, travel trade publications, reality TV series, bloggers, travel shows

  36. International Marketing Program FY2012 Industry Participation Familiarization (FAM) Tours • Why participate in FAMs? • Media coverage • Building relationships with travel trade • Product Training • Be an ambassador for Massachusetts

  37. International Marketing Program FY2012 Industry Participation Massachusetts’ Media Value in 2010: $23 Million! Familiarization (FAM) Tours

  38. International Marketing Program FY2012 Industry Participation Familiarization (FAM) Tours

  39. International Marketing Program FY2012 Industry Participation Other Opportunities in the Japanese Market • Trade Mission & Seminar in L.A. • (August or September ~ tentative) • JATA Show (September 20-23) • Japan Sales Mission (Winter 2013)

  40. International Marketing Program FY2012 Industry Participation • Leads Page: • www.massvacation.com/industry/ • Username: leads • Password: 3RT67JM • Password protected page • Domestic Press Release pitch schedule • Press & trade leads that benefit the industry • Reports from trade shows

  41. International Marketing Program FY2012 International Marketing Program Questions? Betsy Larkin Senior Manager, International Marketing Massachusetts Office of Travel & Tourism Betsy.Larkin@state.ma.us

  42. International Marketing Program FY2012 Tourism U is a FREE series of educational seminars for the tourism industry brought to you by the Massachusetts Office of Travel & Tourism. Dagny Ashley, Coordinator Dagny.Ashley@state.ma.us www.massvacation.com

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