Betsy Wall, Executive Director Japan & New England – Americas Newest Trans-Pacific Gateway Tourism...
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Transcript of Betsy Wall, Executive Director Japan & New England – Americas Newest Trans-Pacific Gateway Tourism...
Betsy Wall, Executive Director
Japan & New England – America’s Newest Trans-Pacific Gateway
Tourism U ~ March 14, 2012Presenters:Betsy Larkin, Senior Manager, International Marketing, MOTTShoko Hirao, MOTT Japanese Marketing Representative
International Marketing ProgramFY2012
United Kingdom Germany
Japan France
Italy Ireland
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
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
Praia
PontaDelgada
Terceira
Reykjavik
DublinShannon London
LHR Frankfurt
MunichParis
RomeMadrid
Lisbon
Amsterdam
Zurich
TorontoYYZ & YTZ
BOS
Bermuda
Santo Domingo
Punta Cana
St. Maarten
ProvidencialesNassau
Aruba
Montego Bay
Cancun Santiago
TokyoNRT
Ottawa Montreal
Direct Service from 31 International Markets
International Marketing Program FY2012
Boston Logan International Airport
Proximity to downtown
Transportation
New Direct Air Service
International Marketing Program FY2012
Boston Logan International Airport
Visitation Spending
Domestic 18 million $13.5 billion International 1.9 million $2.1 billion
International Marketing Program FY2012
Visitation to MassachusettsThe Numbers: 2010
International Visitation to U.S. & Mass in 2010
CountryVisitation
to U.S.Visitation
to MAMA
Market Share
Canada 20,000,000 650,000 3.3%UK 3,800,000 189,000 4.9%Germany 1,700,000 121,000 7.0%Japan 3,400,000 71,000 2.1%France 1,300,000 70,000 5.2%Italy 837,000 41,000 4.9%Ireland 362,000 21,000 5.8%
Source: U.S. Dept. of Commerce/OTTI
International Marketing Program FY2012
Top 15 States for Overseas Visitors
Massachusettsis # 7
*
Excludes Canada & Mexico.
International Marketing Program FY2012
Rank Country1 New York2 Florida3 California4 Nevada5 Hawaii6 Guam7 Massachusetts8 Illinois9 Texas
10 New Jersey
*
(Source: U.S. Dept of Commerce)
Visitor Profiles & Comparisons:Where international travelers spend
Lodging Retail
Domestic 20% 7%
International 33% 25%
International Marketing Program FY2012
(Source: U.S. Dept of Commerce/OTTI)
• 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
International Marketing Program FY2012
How does the Japanese Market Work?
Tourism “Food Chain”
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.”
International Tour OperatorPackages all elements of tour and travel products together
and/ or buys packages from Receptive Operators. Sells via travel agents or directly to the consumer.
Travel Agent“Front Person” - sells packaged holidays from tour
operators directly to the consumer.
Consumer
SuppliersLodgings and attractions.
Receptive Operator
Increase: VisitationMarket shareTour operators“Product”Media coverageTax RevenueJobs
= Increased Revenue for MA Tourism Businesses
International Marketing Program FY2012
MOTT’s International Goals
+
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)
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%
International Marketing Program FY2012
Source:Japan Assn of Travel Agents
Japan – Overview
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)
Japan – Spending in U.S.
International Marketing Program FY2012
•$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)
NEW Japan 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!
International Marketing Program FY2012
International Marketing Program FY2012
• 4 flights per week from April 22nd ~ May 31st • Daily starting June 1st
•185 passengers each way
International Marketing Program FY2012
Easy connections through Tokyo’s Narita Airport to other major cities in Japan
Osaka - 2 airports
Nagoya
Fukuoka
Sapporo
Okinawa Osaka
Nagoya
Fukuoka
Sapporo
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
International Marketing Program FY2012
• 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.
Japan in general
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
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
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
International Marketing Program FY2012
(Source: U.S. Dept of Commerce/OTTI)
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
International Marketing Program FY2012
(Source: U.S. Embassy, Tokyo)
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
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
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
International Marketing Program FY2012
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.
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
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 thesame item and ask for 20 bags
•Japanese spend on average twice as much on souvenirs than other overseas visitors to the U.S.
International Marketing Program FY2012
Foreign Language Websites
www.massvacation.de
www.massvacation.jp
www.massvacation.fr
www.massvacation.it
International Marketing Program FY2012
How Can You Benefit from the Intl Market?
International Marketing Program FY2012
•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
Help Us to Help You!
Industry ParticipationFamiliarization (FAM) Tours
Trade FAMsProduct Managers, Sales & Reservations Staff, Travel Agents, Airline Reps, MICE Reps
Press FAMsTravel writers, daily newspapers, monthly glossies, in-flight magazines, travel trade publications, reality TV series, bloggers, travel shows
International Marketing Program FY2012
Why participate in FAMs?
Media coverage
Building relationships with travel trade
Product Training
Be an ambassador for Massachusetts
International Marketing Program FY2012
Industry ParticipationFamiliarization (FAM) Tours
International Marketing Program FY2012
Industry ParticipationMassachusetts’
Media Value
in 2010:
$23 Million!Familiarization (FAM) Tours
International Marketing Program FY2012
Industry Participation
Trade FAMs Press FAMS Total
FY08 12 33 45
FY09 18 58 76
FY10 10 31 41
FY11 12 21 33
FY12 14 31 45+
Familiarization (FAM) Tours
International Marketing Program FY2012
Industry ParticipationOther 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)
Industry ParticipationLeads Page:
www.massvacation.com/industry/
Username: leadsPassword: 3RT67JM
•Password protected page
•Domestic Press Release pitch schedule
•Press & trade leads that benefit the industry
•Reports from trade shows
International Marketing Program FY2012
International Marketing ProgramQuestions?
International Marketing Program FY2012
Betsy LarkinSenior Manager, International Marketing
Massachusetts Office of Travel & [email protected]
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, [email protected]
www.massvacation.com