Japan Market Briefing

1
Japan Market Briefing
SLT Building Our Future
2
Japan Economic Update

• In 1990 Japan entered a severe recession with the
  bursting of the asset bubble
• In 2005, Japan finally emerged from recession
  after 15 years, and Japans economy is now
  growing steadily
• Private consumption rising
• Industrial production picking up
• Corporate earnings growing steadily
• Unemployment falling
• All economic indicators are strong
• The Bank of Japan indicates the recovery is
  sustainable
• From an economic point of view, now is the best
  time in the last 16 years to target the Japan
  market

3
Japan Travel Market Overview
Japan International Departures (1990-2007)
JATA Is targeting 20 million in 2010
4
Japan Travel Market Trends

• Departures are spread relatively evenly
  throughout the year
• Average length of Summer holidays taken
  increasing year on year
• Real versus ideal 2005 7.1 days versus 11.2
  days
• 7.1 days shows a gain from 6.4 days from 2004
• Average summer holiday budget up in 2005
• US970, surpassing US950 mark for the first time
  since 2001
• Average holiday budget for 50 years married
  employees in 2005 up almost 30
• US1010 compared to US780 in 2004
• Maturing market, more demand for higher quality
  and diversity of travel products

5
Japan Aviation Trends

• Access to Sri Lanka
• UL 3 flights weekly (1 direct)
• Singapore Airlines daily (no direct)
• Thai Airways daily (no direct)
• Cathay Pacific daily (no direct)
• Air Capacity Constraints/Opportunities
• Number of direct flights
• 70 of flights to Sri Lanka are filled by
  passengers to Maldives.
• Direct flights from Osaka? (3 flights a week)
• Air access strategy
• Promote SriLankan Airlines PR
• Increase load factors/possibilities of daily
  flights

6
Key Travel Segments

• Targeted Market Segments
• SCENARIO 1
• 30s Females- Born 1965-1975 (OLs)
• Population 8.5 million, fully employed,
  experience travelers, travel alone, with family
  friends, 3 generation
• Interests Luxury/boutique hotels, ayurveda/spa,
  LOHAS, shopping

• SCENARIO 2
• 50s - Born 1946 1956 (post W.W II
  baby-boomers)
• Population 20 million, active, energetic, high
  spenders, experienced individual travelers,
  rapidly growing segment
• Interests Luxury/high quality hotels, cultural
  experiences, golf, hands-on experiences
• Active Seniors (60s)- Born before 1945
• Population 30 million, retired, healthy,
  energetic, accumulated wealth, travel outside
  peak seasons, outdoors
• Interests cultural experiences, general
  sight-seeing, health, safaris

7
Brand Positioning
A touch of class/distinctive/proud to go
Maldives
Singapore
Appeals to the young active/fun/ diverse
activities
Conservative/relaxing/ appeals to mid to older
people
Malaysia
India
Affordable/ Economical
8
Image Building

• Current Image
• Low cost
• cheap destination
• Ideal image
• Well developed tourist destination
• Luxury hotel accommodations
• Resort destination image
• Friendly hospitality

9
Country Marketing Strategy Recommendations
Marketing Objectives for Japan Market

• SCENARIO 1 analysis
• Numbers of outbound business travelers will
  remain stable.
• SCENARIO 2 analysis
• By 2007, will return back to past 2004 stable
  year average.
• By 2008, with the start of the promotional
  campaigns in 2007, plus JBIC 2 billion
  promotional campaign, will see drastic increase.
• Targeted projections for Japan outbound for 2010
  is 20 million. Sri Lanka outbound projections
  will be 0.25 of the total outbound market.

10
Communications Strategies

• Tour Operators/Travel Agents
• Advertising Package/brochure creation support,
  advertising support for newspapers
• PR Agent FAM trips (e.g. JATA board members),
  workshops, Travel Agent seminars, monthly
  industry newsletters
• Sales Promotion, high quality image library
• Internet Japanese language website to be used as
  informational tool
• Consumers
• Advertising Advertorial inserts, booklets for
  high end magazines (e.g. Crea Traveller, Marie
  Claire, etc), train jacks, train station ads.
• PR Print/TV media coverage, Visiting Journalist
  programs, Press conferences, consumer events,
  etc.
• Sales Promotion Brochures tailored for the Japan
  market, high quality images are necessary
• Internet Japanese language website targeting
  consumers
• Event JATA World Travel Fair, Sri Lanka Festival
  in Tokyo, Tea Queen contest, etc.

11
Distribution Strategies

• Need to increase volume for existing agents
• Need to have new Travel Agencies to start selling
  the Sri Lankan product. Especially the top
  brands including JTB Grand,

12

• Thank You