International Market Briefing 21 November 2006

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International Market Briefing21 November 2006

• Tad Teramoto
• Regional Director Japan

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(No Transcript)
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JAPAN MARKET VISITORS TO AUSTRALIA
STATES(Year Ending JUNE)

• 
  
  (,000)
• 2004
  2005 2006
• AUSTRALIA 646.3 650.7
  624.4
• NSW 273.1
  293.6 266.1
• QLD 454.2
  448.9 418.3
• VIC 66.2
  68.3 64.9
• WA 48.8
  52.4 45.6
• NT n/a
  55.2 53.4

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JAPAN MARKET JAPANESE VISITORS TO NSW
QLD(Year Ending JUNE)
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JAPAN MARKET JAPANESE VISITORS TO NSW (Year
Ending JUNE.)
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Japan Market Strategy

• Tourism NSW Market Approach

Maximize Visitation Potential through wide
range of TRADE and Consumer Activities.

• Trade Activities
• Education / Training
• Famil Coordination
• Newsletter
• Collateral
• Sales Call/Marketing Meeting
• Tourism NSW Sales Missions
• Sydney Style Events
• Consumer awareness
• activities via VJP IMV
• Partnership with non trade
• partner

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Japan Market Intelligence Trends - 1

• Market
• Economy Second biggest economy in the world -
  Recovering
• BUT decreasing average annual
  salary continuously in 8 years.
• Bludger Market Problems Freeter (Job Hoppers)
• NEET (Not in
  Education, Employment or Training)
• 
  (Freeter 1830ys 1.13M / NEET 1535 ys
  0.64M)
• Population Retiring 10M Baby Boomer Generation
  from 2007 to 2011.
• Trend of Baby Boomer
  Lifestyle
• 3/4 people need to work
  after 60s for financial reasons.
• 3/4 people want to be
  involived in volunteer activities.
• Prefered activity after
  retirement (Hakuhodo Survey)
• Men 1. Domestic travel
  (57) 2. Intl travel (46) 3. PC (39)
• Women 1. Domestic travel
  (60) 2. Intl travel (54) 3. Music/movie
  (43)
• Travel Market Active Generation - 3444 ys
  Female 4449ys Male and Active SENIOR
• Passive Generation
  2029 ys Male Female

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Japan Market Intelligence Trends - 2

• Destinations
• Popular Destinations
• AN-KIN-TAN (Cheap/Near/Short) Destinations -
  Holiday (plus Business) markets
• Asia Countries - Thailand, Taiwan,
  Hong Kong (900 flights/173,000 seats p/w)
• Korea (850 flights/125,000 seats
  p/w)
• Guam Holiday market (140
  flights/29,000 seats p/w)
• China Business Holiday (50/50) markets
• (1,000 flights / 169,000 seats p/w
  / 4,400 Japanese companies based in China)
• Europe Holiday market (13 airlines/300 flights
  per week)
• Trend - Visiting one country,
  Historical Culture, Competitive Tour prices
• News hook Topics (Davinci Code,
  Mozart, Christmas in Europe)

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Japan Market Intelligence Trends - 3

• Expanding New Destinations
• East Europe, Macao, South America, Middle East
  Countries, Africa, Mongolia
• Charter flights to off-port destinations
• 3,000 flights (in 2005)
• Domestic Destinations
• Hokkaido, Okinawa, Kyoto etc.
• Soft Destinations
• Hawaii (152 flights/ 32,400 seats p/w),
• US Mainland (630 flights/98,500 seats p/w)
• Oceania (Australia NZ) (139 flights/27,700
  seats p/w)

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Japan Market Intelligence Trend - 4

• Australia Market
• Destination Trends
• CNS Segment - HM, Family, OL, Senior, Group,
  Student
• Market Situation - Cheaper Tour Prices
  (An-Kin-Tan),
• Attractive
  (Profitable for travel agents) Optional Tours,
• 
  Enthusiastic RTO Activity
• Airline TYO, NGO, OSA, SPK, (FUK)
• GC/BNE Segment - HM, Family, OL, Senior
• Market Situation - Higher Tour
  Prices than CNS, Koala, Q1, Enthusiastic RTO
  Activity
• Airline TYO, OSA
• SYD Segment OL, HM, Student, Senior, Family
• Market Situation Higher Tour Prices,
  One of the Most Beautiful Cities in the world,
• Less RTO
  Activity
• Airline TYO, OSA

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Japan Market Intelligence Trend - 5

• Australia Market
• Market Trends
• Australia (Sydney) - Losing market
  share in Japanese overseas market
• Not
  enough promotions?
• Not
  enough catchy topics?
• Not
  attractive destinations?
• Active School Tour Market (about
  50,000/year) Working Holiday Market
  (10,000/year)
• First time visitors 63 / Repeaters
  - 37 (c.f. Hawaii 55)
• Losing HM Overseas Wedding Market
  Share
• Stronger Aussie Dollar High Land Cost
  A1.00 JPY95100
• Increasing Airlines Oil Surcharge
  NRT/SYD/NRT JPY27,200(A300) plus TAX

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AIRLINES CHANGE OF CAPACITY FREQUENCY

• Sydney Route (Non-Stop)
• As of April 2006
  As of October 2006

NRT/SYD/NRT QF B747 7 Flights per week 163,800
seats
NRT/SYD/NRT QF A330 11 Flights per
week 169,900 seats (6,100 Up 2)
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AIRLINES CHANGE OF CAPACITY FREQUENCY

• Sydney Route (Non-Stop Direct flights)
• As of April 2006 As of
  October 2006 As of April 2007
  

QF(NRTKIX)21 AO (NGO) 4 JL (NRTKIX)14
Total 39 578,000 seats (KIX QF/JL
code Share)
QF(NRTKIX)25 AO (suspended in July) JL
(NRTKIX)14 Total 39 553,600 seats
(KIX-QF/JL Code Share)
QF (NRT) 18 JQ (KIX) 7 JL (NRT)
7 Total 32 516,800 seats
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AIRLINES JETSTAR MOVEMENT

• Japan Route

As of Aug. 2007 KIX/BNE/SYD/KIX (Daily)
NGO/CNS/NGO ( 6 )
As of Apr. 2007 KIX/BNE/SYD/KIX
(Daily)
?
As of Sep. 2007 KIX/BNE/SYD/KIX
(Daily) NGO/CNS/NGO ( 6 ) KIX/CNS/KIX
( 4 )
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Current Market Activities - 1

• Japan Sales Mission
• Promote Educate Sydney / Regional products to
  industry
• (One of action plans of Japan Tourism Industry
  Forum)
• Tourism NSW Mini Sales Mission
  (Sydney Suppliers) in Oct. 2005
• Tourism NSW Mini Sales Mission
  (Blue Mountains Suppliers) in July 2006
• Tourism NSW Sydney Style Sales
  Mission (9 Sydney Suppliers/1 Hunter Region) in
  Oct. 2006

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Current Market Activities - 2

• Japanese Newsletter
• Up-date new products, destination information and
  topics from Sydney
• (by Japanese Co-ordinator in H.O.)
• Publish in Bi Monthly basis
• Distribute by Mail to trade media
  (x 500)
• plus E- Mail (x16,000)
• Utilize products seminars

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Current Market Activities - 3

• Familiarization Tours
• Jointly projects with TA and airlines for
• wholesalers and school teachers.
• 2005/06
• Oct.05 JAL Slow Stay Famil. (JL)
• Feb.06 Oz-Net Theme Famil. (TA/QF)
• Mar.06 High School Teachers Famil.
• (TA/QF/JL/TVIC)
• 2006/07
• Oct.06 QF Agent Famil (QF/QHI)
• Dec.06 HIS Counter Staff Famil
  (QF/TVIC)
• Jan.07 JAL Slow Stay Famil (JL)
• Mar.07 JQ Inaugural Agent Famil
  (JQ)
• Oz-Net Famil (QF)

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Current Market Activities - 4

• Seminars
• Destinations products seminars to wholesaler
  retail staff, school teachers jointly with TA and
  other STOs and Airlines.
• 2005/06
• Oz-Net Seminar (TA/QF)
• Destinations Seminar (QF Osaka)
• Consumer Products Seminar (SIT Agent)
• High School Teachers Seminar
  (TA/STO/QF/JL)
• Incentive Groups Seminar (JTB/TA/STO/QF)
• 2006/07
• Agent Operation Staff Seminar (QF/TA/STO)
• Retail Agents Seminar (QF/TQ/TNSW)

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Current Market Activities - 5

• Tactical Campaigns
• Joint Sydney Campaigns with Wholesalers
• and Airlines targeting OL, Family and HM
  markets.
• SIT Tour Campaigns with SIT Agents,
• targeting FIT and active senior market.
• e.g. Golf, Hiking, Photo Shooting,
• Flower Garden, Driving

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Current Market Activities 6-1

• TA Visit More of Australia Campaign
• Objective To recover Sydney
  business via package tour
• and deliver diversity
  experiences targeting on Experienced
• Seekers.
• Term 2006 Shimoki (Oct06/Mar07)
• Core Destinations SYDNEY plus MEL, ADL,
  TAS
• Experiences City, Journey and Nature
• Airlines QF JL
• Wholesalers 7 major wholesalers in
  TYO,NGO,OSA,FUK
• Targets 6,500 pax.
• Promotion channels TA Website Transit
  Newspaper Ad
• TNSW Support Collateral Production (Sydney
  Harbour Ferry Cruise Guide)

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Current Market Activities 6-2TA Visit More of
Australia Campaign
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Current Market Activities - 7

• Collateral
• Educational Manual - School Tour Market
• Sydney Harbour Cruise Guide FIT market
• Sydney The Rocks Walking Map FIT and student
  market
• Image CD Up-date Images for wholesalers

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Current Market Activities 8- 1

• Consumer Awareness Activity Expose Sydney
  Region
• Media Activities VJP (TA TNSW) IMV (TNSW)
• 2005/06 Activities VJP - 2
  TV programs / 11 Magazines
• 
  IMV - 2 TV programs / 2 Magazines

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Current Market Activities 8- 2

• Consumer Awareness Activities Expose Sydney
  Regions

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Market Activities for the Balance of 2006/07 and
Future Opportunities

• 1. Destinations Products Promotion
  
• Japan Sales Missions Arrange regular
  visits by Destination Product suppliers
• Seminars Trainings Joint with
  wholesalers/TA/Airlines
• Famil Tours Products Testing for
  general and special theme products
• Products Developments Seven Experiences
  for Experienced Seekers
• Japanese News Letter Up-Date
  Information
• 2. Tactical Campaigns
• 3. Consumer Awareness Activities Expose Sydney
  Region
• VJP (2TV 6 Magazines) IMV (2
  Magazines 1 Newspaper)
• 4. Collaterals
• Regional destination information
  products.
• 5. Japanese Website Development
• 6. Partnership Development Non travel industry
  trade partners