Japan's Top Hometown Tax Donation Recipient, Rapidly Increasing Number of New Residents: Learning from Miyakonojo City's City Promotion Strategy

The Future Map of Regional Economies is a series introducing unique business models leveraging area characteristics and activities contributing to regional economic revitalization. The fourth installment focuses on Miyakonojo City's city promotion strategy. The city has attracted attention with bold initiatives, such as a hometown tax donation program focused on "meat and shochu" (both of which have the highest production value in Japan) and PR campaigns featuring actor Yoichi Nukui and the mascot character Funassyi. We explore insights for maximizing regional appeal through interviews with Mayor Takahisa Ikeda of Miyakonojo City, Miyazaki Prefecture, and Tomokazu Yamamoto of Dentsu Inc.'s Creative Planning Division 4, who supports their public relations activities.

The Secret to Bold City Promotion Success

Q. Could you explain the background behind Miyakonojo City's decision to focus on city promotion? What challenges were you facing?

Ikeda: When I took office as mayor and visited a national government office, the staff at the counter mistakenly thought I was from Miyagi Prefecture instead of Miyazaki Prefecture. They even mispronounced it as "Tojo City." While Miyakonojo City is known to residents of Miyazaki Prefecture, its recognition outside the prefecture is still very low. I felt strongly that we needed to make Miyakonojo City known to people nationwide.

Therefore, our first initiative was external PR. Miyakonojo City boasts Japan's highest production value for meat (combined beef, pork, and chicken) and shochu. We decided to leverage these strengths to focus on the "Furusato Nozei" (hometown tax donation) program. Starting in the latter half of fiscal year 2014, we adopted "Japan's Best" as our keyword and limited return gifts exclusively to meat and shochu.

As a result, donations, which had previously only reached a few million yen annually, surged to 500 million yen. In fiscal year 2015, Miyakonojo ranked first nationally in donation receipts. Even after adding other local specialties as return gifts starting in fiscal year 2016, we achieved the top spot in Japan multiple times. This initiative became the starting point for implementing a broad city promotion strategy.

Q. How did Dentsu Inc. participate in Miyakonojo City's city promotion strategy?

Yamamoto: When Miyakonojo City first ranked number one in hometown tax donations, they approached us about running a newspaper ad, and Dentsu Inc. handled the ad production. Being from Miyakonojo myself, I have a personal connection to the city and have supported its city promotion ever since.

Impactful promotions featuring Funassyi and Yoichi Nukui

Q. To promote the city's appeal, you also ran a promotion featuring actor Yoichi Nukui, who is from Miyakonojo City. Could you tell us about this?

Ikeda: We've released a series of PR videos starring Mr. Nukumi on Miyakonojo City's official YouTube channel. We've combined Mr. Nukumi with world-class breakdancers and had him debut as the VTuber "Nukumin," highlighting the authentic deliciousness of Miyakonojo's meat and shochu.

Yamamoto: The phrase "Japan's Best" is very catchy. However, the hometown tax donation portal sites are flooded with return gifts labeled "Japan's Best in this category," making it difficult to convey Miyakonojo City's unique appeal. Therefore, we decided to conduct PR activities using Mr. Nukumi to communicate that Miyakonojo City is the "authentic" Japan's Best. The various projects featuring Mr. Nukumi have been featured on TV and online nationwide every time a new video is released, generating significant buzz.

Q. In fiscal year 2023, you also ran a relocation campaign featuring Funassyi, the unofficial mascot of Funabashi City, Chiba Prefecture. Could you explain the background behind that?

Ikeda: Miyakonojo City currently has a population of about 160,000. To maintain this population in 10 or 20 years, we've implemented various policies since fiscal year 2023, including child-rearing support and relocation assistance.

One of these is the Relocation Support Grant Program. This program provides up to 3 million yen per household for moving to a mountainous or rural area, with an additional 1 million yen per child (under 18). When we promoted this relocation support policy using Funassyi, the response far exceeded our expectations. The number of new residents in fiscal year 2023 reached 3,710, more than double our projections. Our goal was to halt population decline within ten years, but within just one year, the decline stopped and the population began to grow. Due to budget constraints, we imposed restrictions on the grants for fiscal year 2024, but we continue to offer one of Japan's top-level relocation support programs.

Yamamoto: The mayor emphasized "communication that reaches the people it should reach." We deliberately approached Funassyi, a local mascot, from the perspective of someone least likely to relocate. For fiscal year 2023, Miyakonojo City's relocation support grants had no cap on recipients, with an additional ¥1 million per child. Since Funassyi has 274 siblings, if the entire family relocated, the total subsidy would be ¥277 million. We felt this impactful figure and the character were the best casting to convey this policy.

We also put significant effort into the relocation and settlement support website. Under the tagline "The longer you live, the more Miyakonojo you'll love," the homepage uses animation to clearly explain the grant system while seamlessly integrating the city's beautiful nature and rich lifestyle. We take pride in the fact that our information delivery is on par with any municipality. We really want people to see it.

Define the objective and consider the most direct path to results

Q. These initiatives have been featured on TV and other media, further raising Miyakonojo City's profile. What do you think are the key factors behind the success of this city promotion?

Ikeda: I always think about achieving results by the shortest route. Our goal is to make Miyakonojo City known nationwide. Among various initiatives, we considered the hometown tax system the shortest route. We explored how to maximize its appeal while showcasing the city's unique characteristics. Decisively narrowing our specialty products to meat and shochu, and implementing the policy with swift decision-making, proved beneficial.

Yamamoto: I believe the mayor's policies succeeded precisely because they were catchy. When you have an appealing "What to Say," figuring out the "How to Say" becomes straightforward. Looking back at past cases, companies that achieve results almost always have leaders who champion catchy "What to Say" messages.

Ikeda: Dentsu Inc.'s promotional strategy also proved highly effective. We greatly appreciated the continuous stream of innovative ideas you proposed – concepts we never would have conceived on our own. Moreover, achieving the top spot in hometown tax donations and executing unique PR campaigns increased our media exposure. When we announce new policies, the media comes to cover them, creating more opportunities for people to learn about Miyakonojo City... This has created a virtuous cycle.

Yamamoto: Increased tax revenue has also brought new vitality to the city. The municipal library has been renovated, the complex facility "TERRASTA" (*) has opened, and every time I return to Miyakonojo City, I see it becoming livelier. I feel the results of our city promotion efforts are being returned to the citizens.

The key is for top leadership to commit wholeheartedly and assess the results.

Q. What has been the reaction from city staff and residents?

Ikeda: The results of the city promotion strategy are reflected in numbers like the amount of hometown tax donations received and the number of new residents. Since much of government work can't be measured by numbers, this has boosted staff motivation.

On the other hand, residents' reactions vary. While we use the donations received through the hometown tax system for a wide range of initiatives, I feel it's not always easy to gain widespread support from residents.

That said, we are truly grateful when people from outside Miyakonojo tell us, "Miyakonojo seems really vibrant lately." We believe it's important that these external voices reach our citizens and help build momentum.

Q. Could you offer advice for municipalities facing similar challenges?

Ikeda: For city promotion, I believe a focused strategy yields better results than a flat approach. The key is for top leadership to commit wholeheartedly and assess outcomes. If you're serious about it, incorporating ideas from professionals like Dentsu Inc. while driving the initiative forward could be effective.

By narrowing down its hometown tax return gifts, Miyakonojo City left a strong impression as "Japan's premier hometown of meat and shochu." To stand out from other municipalities and showcase its unique appeal, decisive action to implement bold measures and the flexibility to embrace sharp ideas appear key.

※A complex facility comprising a hotel, restaurants, and a food market, aimed at revitalizing Miyakonojo's central city area alongside adjacent facilities like the municipal library.