The Right Approach to the Booming Inbound Market (Part 2) ~ Yamagokoro's Keisuke Murayama × Dentsu Inc. Kuniyuki Takahashi ~

Murayama: Furthermore, it's crucial for the Japanese people living in that region to properly convey its appeal themselves. When locals speak, it adds depth. For that, it's extremely important for Japanese people to know their hometowns and the areas where they live.
In Switzerland, I hear they study "regional studies" in elementary and middle schools. Local pension owners and tourism operators visit schools to teach about their businesses. From a young age, children absorb what makes their local area function, who the people are, and what its charms are. When they grow up, everyone can become a tour guide. For Japanese people to understand their own country, individual effort is certainly important, but I think we also need to develop systems like education to raise the overall level going forward.

Takahashi: I want local people to become their own promoters. I've also told people at local broadcasters, "I want you to create content that discovers the area's appeal. Don't just broadcast it on TV; streaming it online is another option. Video can fully convey appeal through images and sound, transcending language barriers. Having professional content creators communicate the charm of their own area is incredibly important."

Murayama: Furthermore, actually going overseas is vital, right? Ultimately, I think people become timid because they haven't been out into the world. The more you go out, the more you can objectively compare yourself. It's absolutely crucial for people to gain that experience while they're still young. Also, even without going overseas, there are many ways to rediscover the region's appeal from an international perspective, like talking with foreigners.

Taking the initiative in Japan's changing landscape with inbound tourism

Takahashi: In June, the Japan Tourism Agency newly certified seven domestic tourism routes, including eastern Hokkaido, Tohoku, and Chubu.

Murayama: Regional collaboration is vital, but equally important is the movement to promote Japan as a whole, transcending individual areas. The Japan Tourism Agency is thinking about how to promote the country as a whole, and we're seeing action across various industries, like associations forming. Take golf, for example. The Japan Golf Tourism Promotion Association was established. Using golf as a unifying theme, golf courses from Hokkaido in the north to Okinawa in the south have joined, aiming to market Japan as a whole. The appeal of Japanese golf courses is that they can be enjoyed year-round. Since the regions where you can play change with the seasons, a nationwide effort is crucial to promote the image of "Japan = Golf" throughout the year. Golf is just one example. Other sports, and the Japan Shopping Tourism Association where we currently serve as directors, are working to welcome foreigners across all of Japan, starting from Tokyo and extending to Sapporo, Sendai, Kansai, Fukuoka, and Okinawa. Furthermore, major retailers and real estate companies operating nationwide are also promoting their entire groups alongside their regional bases.

Murayama: Furthermore, the year-round increase in foreign tourists is causing the traditional time, day-of-the-week, and seasonal patterns to disappear. The rise of LCCs has also had a significant impact. I recently went to Fukuoka. Previously, passengers concentrated in the morning and evening, and flights were limited to those times. But with the increase in LCCs, flights now operate all day long. Moreover, while it used to be empty except on weekends, it's now busy throughout the weekdays too. Seasonally, Chinese tourists used to concentrate around Chinese New Year, but this year, they're coming during cherry blossom season and even in May, with similar numbers. Tourism is becoming year-round, aligning with holidays across Asian countries and regions.

A major impact of this is that employment has also become year-round and more stable. A houseboat owner mentioned that while they used to only be busy during summer, especially around fireworks season, now they have steady, uninterrupted bookings. He was pleased that seasonal hiring has shifted to year-round employment, allowing them to maintain service quality. All of this is driven by inbound demand.

Takahashi: Hearing this has made me even more aware of the importance of inbound tourism. That said, I also sense uncertainty about the period after the Olympics, and that companies are hesitant to make bold investments.

Murayama: Right now, the market is growing by 40%. When the market grows by 40%, it's only natural that sales should also grow by 40% – that's the average. So, I tell them to look at whether their sales growth rate exceeds 40% as one benchmark. Right now, it's not exactly a windfall, but we're somewhat benefiting from the situation. If the yen strengthens, there's a risk that this benefit could quickly fade. We need to provide a high-quality customer experience, build brand recognition, and ensure customers choose us next time. To achieve this, we must clearly define our target audience, develop services, and communicate effectively. Precisely because things are going well now is why we should rigorously implement this strategy.

Even with the current inbound boom, I believe many businesses still see less than 10% of their total sales coming from this segment. Investing heavily in physical infrastructure is also challenging. Deciding how much effort and budget to allocate within these constraints is a management challenge, but there are still many things you can do right now.

For example, while group tours from Asia tend to get the spotlight now, FIT (Foreign Independent Travel) will inevitably become the norm going forward. Hokkaido stands as a prime example of inbound success. It's immensely popular with Asian tourists and has built strong relationships with travel agencies to attract group visitors. Yet, the next move is already underway: attracting visitors from Europe and America, regions already advanced in FIT travel. By cultivating know-how focused on Europe and America, particularly the US, they aim to preempt the inevitable shift towards FIT.
The partners we work with are thinking about innovation two or three years down the line. They're desperately brainstorming ideas to dramatically boost sales, and rightly so. That's precisely what meticulous marketing entails.

Takahashi: Precisely because sales are strong now is the opportunity to focus on the future. We at the Dentsu Group will continue striving daily to provide reliable support to all our valued clients. Thank you very much for today.