Bangkok--Oct 14--eTurboNews
The number of tourists forecast to arrive from Japan has again been revised down, prompting the Australian government to prepare a Japan Action Plan to help address the decline within 90 days.
Earlier this week, the Tourism Forecasting Committee projected an average annual growth for Japanese tourism of only 2.9 percent for the period 2005-14, a downgrade from 3.5 percent forecast six months ago.
In April 2005, the Tourism Forecasting Committee forecast 774,400 Japanese tourists for 2006, which this week has been downgraded to 720,000. For 2014, the figure has been revised from 991,100 to 894,000.
Over the period 2005-14, the number of tourists forecast to arrive from Japan has been revised down by nine percent over the period 2005-14 in just six months.
"Japan is the most challenging of all of our mature tourism markets. Since the 1980s, thousands of Japanese have visited Australia's shores but in recent years, this market has slowed right down," Australian Tourism Minister Fran Bailey said on earlier this week while addressing the Fourth National Tourism Futures Conference on the Gold Coast.
"It seems most people in the tourism industry have given me their views on why this has occurred - from a downturn in the Japanese economy to poorly targeted marketing to stronger competition."
"Given the importance of this market and the hefty investment by taxpayers, I have decided that a Japan Action Plan should be prepared within 90 days to investigate all factors affecting this market and recommend a way ahead. The Japan Action Plan will be developed after talking with local tourism operators, both in Australia and in Japan.
"It's time for action and no more talk. This is why I have imposed a 90 day deadline for the development of the Japan Action Plan."
Tourism Australia is now investing $13 million in a new marketing campaign. Between 2000-01 and 2004-05, the number of tourists from Japan fell by 3.2 percent, from 724,300 to 700,800. Japan is a $2.1 billion tourism market.
A total of $7.5 million in co-operative spending by Tourism Australia (TA), the Qantas Group and JAL will help boost the flagging Japanese market TA managing director Scott Morrison said.
"Tourism Australia is working with the tourism industry and key partners such as Qantas and JAL to boost the flagging Japan market and $7.5 million in new co-operative campaign activity adds additional weight to our existing activity in this key market," Scott Morrison said.
"TA is working with Qantas, Australian Airlines and JAL on three separate campaigns in Japan.
"As a result of increased funding from the Australian government's Tourism White Paper, Tourism Australia is already spending more than $13 million this financial year in Japan including the new $8 million Brand Australia Campaign, launched in April which put Australia back on TV in Japan for the first time in 7 years.
"While we have held our market share relative to our long-haul competitors, we have lost share in the total Japan market, with Australia's share of Japanese outbound market falling from a peak of 5.6 percent in 1993 to 4.2 percent in 2004, the same level as 1987," Morrison said.
"In recognition of the importance of the Japan market and the special issues it has been facing, Tourism Australia has increased activity in Japan earlier this year with encouraging results. Brand Australia campaign tracking results found that demand for Australia rose from 14 percent in April to 21 per cent in June.
"TA is continuing with its research and analysis of the changing Japan market and will update and evolve our activity to meet the ever changing needs of this key market," Morrison said.
TA recently conducted a Japan Roundtable to set a course of action to ensure Australia's share of this market is not only maintained but also grows by maximizing opportunities. Attendees included State and Regional Tourism Organizations, key industry stakeholders and Tourism Australia.
"This is the first stage in a process that will also involve the Yonshakai, ATEC Japan Policy panel, airlines and other industry stakeholders. The industry has already welcomed the opportunity through TA's Japan Roundtable to assess the current situation, review current destination marketing strategies and develop an industry-wide strategic response to the current environment," Scott Morrison said.
"During my recent industry briefings in Queensland I heard first hand about the impact of the changing Japanese market on local tourism operators, which supported our intelligence from the market. In Japan, TA has been working with the industry to better respond to challenges, such as the decreasing number of weddings in Japan (by 50,000 per year), the reduction of the 'Young Office Lady' segment as a percentage of the population, the move away from package travel, and the massive increase in short-haul airline capacity into China.
"The Tourism Australia/ Japan Airlines' Slow Stay Australia campaign was the first time the Japanese national carrier used another destination's brand style in its advertising. The campaign featured in major national magazines, train station posters, and online promotions. In June the campaign shifted to focus on the fast emerging FIT market by using innovative mobile phone technology that enabled consumers to access a dedicated website.
A co-operative brand campaign with Qantas ran from March 2005 and included print ads in major newspapers as well as outdoor and transit advertising delivering an increase of 18 percent in bookings over the same period of the previous year and 7,000 requests for Tourism Australia's travelers guide were received, the highest level recorded from a brand campaign in this market.
"Our success as a destination is a function of the value we extract from key markets and not by how many people visit Australia. TA has therefore identified the higher yielding segments of 'Office Ladies' and 'Jukunen.'
"These segments, have high disposable income, are likely to shop, are experienced travelers and are looking for the rejuvenating experiences that Australia can deliver.
"Tourism Australia is working to target high- yield Japanese travelers ensuring that they continue to feel inspired to visit Australia now and into the future," Morrison said.
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