California Travel & Tourism Commission Asia Mission Japan Briefing Meeting June 30 th, 2011.

California Travel & Tourism Commission

Asia MissionJapan Briefing Meeting

June 30th, 2011

Language: Japanese Population: 127, 930,000 (as of

May 2011) Government: Democratic Party

of Japan Unemployment Level: 4.7% (as

of April 2011 Real Economic Growth: +2.3%

in 2010 (2011: -0.9%/2012:+2.2%)

GDP: total $5.47 trillion (2010)

Capital City: Tokyo Key centers of influence: Tokyo,

Osaka, Nagoya

Japan Market Profile

Japan Outbound & California Visitation

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,103,000

849,000

653,000 630,000

722,000

675,000

629,000

462,000

545,000

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Japanese Visitation to California

36%

32%

18%

10%5%

Leisure/Recreation/Holidays Business/Professional

Visit Friends/Relatives Convention/Conference

Other Purpose

Purpose of Trips

65% of Japanese travelers can be categorized FIT travelers (49% + 16%), purchase travel parts such as air tickets, accommodation separately via travel agents.

Even though they do not purchase tour package, they still tend to use travel agent (71.5%) for arrangements.

Booking Method

Breakdown of Japanese Visitation

35%

49%

16%

Full package for Leisure visitors Air & Hotel package

Own arrangement

Visited Travel Agent

Called Travel Agent

Travel Agent

Website

Online Travel Agent

Airlin e Website

Hotel Booking

Sites

Hotel Chains Sites

Other0%5%

10%15%20%25%30%35%40%45%50%

13%10%

22%27%

44%

14%

22%

7%

FIT (Multiple Answeres)

80% of Japanese travelers book their travel from one to six month s prior to departure with 2-3 months representing almost half the market.

Booking Timing

Breakdown of Japanese Visitation

Airlift from Japan to California

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

20

40

60

80

100

120

140

160

134 132

114 113 113 114 116

99 96 94

8291

Flight Frequency Per Week

December Each Year

Nu

mb

er

of

Flig

ht

Flight Frequency Per Week


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

5000

10000

15000

20000

25000

30000

35000

40000

45000

5000045,630

43,986

38,948 37,136

36,198

35,294

34,534

30,145 30,361 27,618

23,567 25,403

Seat Capacity Per Week

December Each Year

Se

at

Ca

pa

cit

y

Seat Capacity per Week


7 airlines from Narita – all daily flights American Airlines, Japan Airlines, All Nippon Airways, Korean Air,

Delta Airlines, Singapore Airlines and United Airlines 2 airlines from Haneda – daily (ANA and Delta)

5 airlines from Narita – all daily with different aircraft sizes 1 flight from Osaka – daily by United Airlines 1 flight from Haneda – daily (JAL)

To Los Angeles

To San Francisco

Stagnant outbound market situation – on a recovery

Big and Expensive market to carry out marketing programs – Budget reductions

Rapidly changing distribution (lesser margin for travel agencies)

Low ratio of “Fly and Drive” travels – tougher to promote “rural”

Challenges

Challenges & Opportunities


Sheer market size – Recovery potential (over 1 million visitors in Year 2000)

Increasing number of FIT/well-experienced travelers

“Open sky” agreement – flights from Haneda Airport

Main gateways to the U.S.

Strong in-market presence by key industry partners

Better exchange rate

TPC

Opportunities


Prior to the disasters that began March 11th, signs were pointing to an increase in outbound travel this year, thanks to the recovering economy and strong value of the yen.

The Japan Association of Travel Agents (JATA) had set a goal for 2011 to surpass the all-time record of 17,818,590 outbound pax (set in the year 2000) on the way to 20 million pax in 2012.

The impact on tourism after the earthquake, tsunami and nuclear crisis is being felt the most by domestic and inbound Japan travel, more than outbound travel.

Outlook: Overall Outbound


Outlook: March 11th Recovery Since the earthquake, outbound travel is on a steady path to

recovery: -9.1% in March, -9.0% in April and -8.4% in May.

The U.S. mainland is outperforming the average, with just a 6.0% decline in March.

The International Air Transport Association (IATA), like other experts, links travel demand to economic performance. It is expecting a travel slowdown from Japan during the first half of 2011, leading to a recovery as pent-up demand releases, and reconstruction progresses in the second half of the year.


R&C Tours is targeting to handle 56% more pax to North America in July.

Climbing fuel surcharges, especially to long-haul destinations, are affecting agents’ outlook on U.S. travel.

Outlook: U.S. Travel


JATA’s latest survey of booking levels at Japanese travel agencies (released April 20th) shows how the earthquake and climbing fuel surcharges has affected package tour bookings for the North American mainland.

January 2011: 99.7% February 2011: 120.6% March 2011: 101.0%

April 2011: 87.6% May 2011: 81.8% June 2011: 86.8%

The survey was completed; however, before the mood of self-restraint abated and last minute bookings poured in for the Golden Week (late April/early May) holidays, so the next survey should be more positive.

Outlook: U.S. Travel / JATA


The Japan-U.S. open skies agreement went into effect in October 2010, which has resulted in new routes from Japan to the U.S. mainland, including new flights to California.

Airline Alliance Destination Aircraft Capacity Frequency

Delta Air Lines SkyTeam Los Angeles B747 402 Daily

All Nippon Airways Star Alliance Los Angeles B777 223 Daily

Japan Airlines Oneworld San Francisco B777 245 Daily

Outlook: U.S. Travel / Open Skies

Japan Mission 2011

Schedule: June 30th (Thu)

Time Duration Contents Remarks

10:00-11:30 90 min Presentation Rehearsal & Workshop booth Set-up

At Iwasaki Koyata Memorial Hall (B1F) & Banquet Room (B1F)

11:30-12:00 30 min Guest registration & Greeting

12:00 5 min MC to announce the opening of the event MC/Ms. Junko Kajihara

12:05-12:10 5 min Welcome Remarks Antonette Eckert

12:15-12:35 25 minPresentation by CTTC Japan (20 min)Marketing promotion/ActivitiesCA Expert Video (5 min)

Yoichi Hayase / Wataru Takaku

Japan Mission 2011


12:35-1:30 55 min

Delegate Presentation

1. San Francisco Travel Association

2. California Academy of Science

3. Holiday Inn – Civic Center

4. Napa Valley Wine Train

5. Red & White Fleet

6. Miramar Hospitality

7. Beverly Hills Conference &

Visitors Bureau

8. LA Inc

9. Universal Studios Hollywood

10. Cirque Du Soleil

11. Anaheim Orange County Visitor

& Convention Bureau

12. Disneyland Resort

13. Sea World San Diego

14. Premium Outlets

At Iwasaki Koyata Memorial Hall (B1F)Time allocation: (3 minutes maximum 3 slides/ video each)Sandwiches will be provided to CA delegates in the banquet room. (Separate from the presentation hall).Each delegate will have time to eat during the presentation by other delegates. Group A (1-7): Stay presentation hall until finish your presentationGroup B (8-14) Stay banquet room to eat first, then move to presentation hall at 12:55

Japan Mission 2011


1:40-2:25 45 min

Trade WorkshopOne-on-one pre-scheduled appointments with Japanese travel trade. 1:40-1:55 1st appointment1:55-2:10 2nd appointment 2:10-2:25 3rd appointment

At Banquet Room (B1F)Buffet lunch will be served for travel agents. Agents who have appointment meet first then eat. Other agents who don’t have appointment eat first then meet. *Meeting with product managers or senior tour planners.

2:25-3:20 50 min Trade Workshop Network with Japanese travel trade

Network while having lunch. It’s a free flow workshop, so attendees will come by at random.*Meeting with front line staffs.

Japan Mission 2011


3:20-3:30 10 min Lucky Draw & Closing remarks

AA, DL and UA/CO will provide complimentary tickets from Japan to California.

3:45-3:50 5 min Group photograph All delegates

4:00-6:00 120 min Preparation time

In order to make the train reservation to Osaka, CTTC Japan will collect Japan Rail Passes from each delegate who has purchased one. Please make sure that you bring it with you before departing.

*For those who have chosen not to purchase a Japan Rail Pass, CTTC Japan will make a reservation for the same train. Please bring the exact amount for the ticket (14,000JPY).

Japan Mission 2011


6:00Delegation members to be back to the venue. Anton to go through the rehearsal for the welcome remarks

At Iwasaki Koyata Memorial Hall (B1F)

6:30 Guest registration & Greeting

7:00 MC to announce the opening of the event. Professional MC

7:05 10 min MC to introduce CTTC HQ and delegations members

CTTC HQ and delegation members to come up on the stage. Delegation to wave to guests when their names are called.

7:15 5 min Welcome Remarks Antonette Eckert

7:20 20 minPresentation by CTTC Japan 2010 Japan Marketing Promotion presentation including “Kanaeru California” Dream Campaign

Yoichi Hayase / Emiko Shinozawa

Japan Mission 2011


7:40 PM 30 min Network with Japanese media

Opportunity to speak with various media outlets to discuss/introduce your product. Wine & Food pairing can be experienced at each of the 3 food stations.

8:10 PM 15 minTalk Show with Chef Sugiura as one of the successful dream achievers from Japan

Share his CA dream experience, introduce menu, California cuisine and products mainly focusing on California Olive Oil

8:25 PM 30 min Network with Japanese mediaOpportunity to speak with various media outlets to discuss/introduce your product. California Olive Oil Tasting can be experienced at the booth.

8:55 PM Closing remarks MC

9:00 PM Event ends Return to hotel by motor coach

Japan Mission 2011

Schedule: July 1st (Fri)06:45-07:00

Check out of hotel and meet at lobby. Bring your luggage to load on the delivery truckCTTC Japan meets delegates at hotel lobby. Please place your luggage on the truck.The truck carry the luggage to Osaka and will take 8 to 10 hours depending on traffic. The luggage will be delivered to the Hilton Osaka bellboy desk (Between 3 to 5 pm).

07:15 Transfer to Shinagawa stationWalk to train station. (10 minutes) with CTTC Japan staff

07:40 Leave Shinagawa Station to Shin Osaka via Shinkansen (Bullet Train – Hikari 503)We will all travel to Osaka via Shinkansen (bullet train). The ride from Shinagawa to

Shin Osaka will be about three hours. The train ticket is 14,000 JPY, and the Japan Rail Pass will cover it. Light meal (breakfast) will be provided in the train.

10:30 Arrive at Shin Osaka Station Take motor coach to Hilton Osaka Hotel (15 min)

11:00 Each delegate will confirm that their goods arrived safely at the Osaka venue.

Japan Mission 2011


Time Duration Contents Remarks

11:00-11:20 30 min Preparation & Workshop Set-up

Kin Room, Hilton Osaka 4F

11:30-12:00 30 min Guest registration & Greeting

12:00 5 min MC to announce the opening of the event Yoichi Hayase

12:05-12:15 10 minWelcome Remarks Short Introduction of California Delegates and Japan Team

Antonette Eckert

12:15-12:35 20 min Presentation by CTTC Japan Tomo Shimada / Wataru Takaku

Japan Mission 2011


12:35-1:30 55 min

Delegate Presentation 1. LA Inc2. Beverly Hills Conference & Visitors Bureau3. Universal Studios Hollywood4. Cirque Du Soleil5. Anaheim Orange County Visitor & Convention Bureau6. Disneyland Resort7. Sea World San Diego8. Premium Outlets9. San Francisco Travel Association10. California Academy of Science11. Holiday Inn – Civic Center12. Napa Valley Wine Train13. Red & White Fleet14. Miramar Hospitality

At Kin Room (4F)Time allocation: (3 minutes maximum 3 slides/ video each)Sandwiches will be provided to CA delegates in Gin Room (4F). (Separate from the presentation room).Each delegate will have time to eat during the presentation with other delegates in the same group.Group A (1-7): Stay at Kin Room until finish your presentationGroup B (8-14) Stay at Gin Room to eat first, then move to Kin Room at 12:55

1:40-2:25 45 min

Trade WorkshopOne-on-one pre-scheduled appointments with Japanese travel trade. 1:40-1:55 1st appointment1:55-2:10 2nd appointment 2:10-2:25 3rd appointment

Kin Room (Same room)Buffet lunch will be served for travel agents. Agents who have appointment meet first then eat. Other agents who don’t have appointment eat first then meet. *Meeting with product managers or senior tour planners.

2:25-3:20 50 min Trade Workshop Network with Japanese travel trade

Network while having lunch. It’s a free flow workshop, so attendees will come by at random.*Meeting with front line staff.

3:20-3:30 10 min Lucky Draw & Closing remarksUA/CO will provide complimentary ticket from Japan to California.

Clean up

Japan Mission 2011

Schedule: July 1st (Fri)

End of the program in Japan and free time

4:00PM Check In @ Hilton Hotel OsakaUpon your request, CTTC Japan will book your rooms at Hilton Osaka at rate of JPY 17,000 for July 1 Friday night.

Option:6:00PM-8:00PM

Final Closing NightCTTC will host a farewell casual dinner and karaoke. You are

welcome to join if you stay in Osaka!

Depart from Osaka 　 at your own arrangement

Japan Mission 2011

Schedule: July 1st (Fri)

How to get to Kansai International Airport (KIX) from Hilton Osaka Hotel We recommend you to take the Airport Limousine bus from hotel (please check the exact time at Bell Desk). The bus fee is 1,500 JPY (about $18), and takes about 1 hour to get to the airport).You can also take the JR Train, Haruka Express from Shin Osaka station to Kansai International Airport train station, which leaves every 30 to 60 minutes from Shin Osaka to Kansai Airport and it will be covered by the Japan Rail Pass. CTTC Japan representatives will leave Osaka on July 2, Saturday, so you are welcome to join us back to Tokyo.

Flight from Osaka to San Francisco:United Airlines operate direct flight from Osaka (KIX) to San FranciscoUA886 17:35 (KIX) 11:15 (SFO)

How to travel back to TokyoFrom the Hilton hotel, catch a taxi to Shin Osaka station (about 10 minutes) or take the JR train from Osaka station, which is only a few minutes walk, to Shin Osaka station (about 5 minutes). Bullet train from Shin Osaka will take you to Tokyo/Shinagawa station in three hours. The train ticket is 14,000 JPY, and it will be covered by Japan Rail Pass.

California Travel & Tourism Commission

Asia MissionJapan Briefing Meeting

June 30th, 2011

California Travel & Tourism Commission Asia Mission Japan Briefing Meeting June 30 th, 2011.

Documents

Transcript of California Travel & Tourism Commission Asia Mission Japan Briefing Meeting June 30 th, 2011.