Japan Market Current Performance

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Japan Market Current Performance
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Outbound since 1980
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Where are Japanese travellers going?
Japanese visitors by destination 2005
33.5
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How do we compare?
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How do we compare?
Most desired destination
Source JTB Corp Report.
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How do we compare? Total Market Share
0.89
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Perceptions of New Zealand in Japan

• Naïve about NZ as a holiday destination
• Imagery is more agricultural than other markets
• Perceive NZ as a land of gentle nature/ boring
• I can go to New Zealand when I am older

Source Tourism New Zealand Perceptions Research
2005
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Perceptions of New Zealand in Japan once they
have been

• Invigorating experience
• Gives visitors a sense of accomplishment and
  freedom
• Offers opportunities to recharge and be
  comfortable
• Makes you feel like you belong / feel connected
  to
• Surprised that New Zealand had four distinct
  seasons

Source Tourism New Zealand Perceptions Research
2005
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Market by Age
Year end March
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• The latest facts and figures
• month April 2006 Japanese arrivals down 27
• year end April down 8.1 - 149, 896
• Japan GDP annual growth rate 1.9
• Current exchange rate 71.9yen1 May 26 06 NZ
  Reserve Bank
• Unemployment in Japan decreasing (4.1)
• Jetstar to start flying Osaka Sydney March 07
• Total Japanese outbound 2006 exp 18 million

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Japan Market Sectors
Family 35-55
O.L.
Student
Silver 60
Baby Boomer (New Silver) 55
Language Study 18-24
School Excursion 15-18
Smart Working Affluent Females (S.W.A.F.) Females
25-40
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New perspectives on the Japan market

• The Japanese market is changing and changing
  quickly
• - increase in short haul travel
• - shift in market segment size e.g. growth in
  FIT, decline in wedding/honeymoon market
• - shift in information distribution internet,
  guide books, TV, cell phones
• - the market has an increasing sense of value
  for money
• - confidence to travel overseas and with English
  has increased

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New perspectives on the Japan market

• We need to communicate with the customer, as well
  as the trade
• - We cannot rely on the travel industry alone to
  educate the market on what we have to offer
• - It is time to make greater use of technology
  in our promotion going direct to the consumer
• - increased on-line presence, consumer events,
  PR
• Agents need help with product development and
  promotion
• - reduce risk to try something new
• - lack in depth destination product knowledge
• - motivation

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FIT potential

• F.I.T.'s are increasing
• new styles of travel, fly drive, long-stay,
  campervan
• NZ appeals
• - safe, clean, green,
• - English speaking
• - same driving rules, cars and little traffic
• - can relax
• greater percentage of baby boomers FIT
• lets get used to it
• lets prepare !

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Special interest travel

• Potential to grow
• ski
• hiking, trekking, walking
• golf
• gardening
• food wine
• fishing
• sports marathon, multi-sport, rugby

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Group travel growth potential

• will remain a major sector
• there will always be a market for full packages
• shift from must see everything
• less travel time, more free time
• looking for experiences and interaction
• value for money, not cheap
• mostly 55

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PR, Events, and Joint Promotions

• We need to think outside the square to raise the
  perceived value of brand New Zealand
• promote with new partners outside the travel
  industry leverage off
  local/famous brands
• be smarter with PR
• targeted consumer events
• work more closely with Trade NZ

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2006 Japan Team from 1 June
Regional Manager Jason Hill
Office/ Information Manager Motoko Uchida
Marketing Manager Setsuko Yajima
PR Manager Yumiko Nakayama
Trade Development Manager Naoki Inohiza
Business Development Manager- TYO Kenya Irie
Business Development Manager- OSA / NAG Ayako
Takei
Marketing Projects Manager Nathan Cook
Marketing Coordinator Noriko Yokoo
PR Coordinator

• Campaign
• Brand tactical
• On-line promotion
• Consumer Events

• Trade Marketing
• Tactical Promotions
• Trade Events
• Trade Famils

• PR
• IMP