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RR RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #3344/01 3450005
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RUEHKSO/AMCONSUL SAPPORO 1897
RUEHIN/AIT TAIPEI 7202
RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 TOKYO 003344 
 
SIPDIS 
 
STATE FOR EEB/TRA DAS BYERLY 
 
E.O. 12958: N/A 
TAGS: ETRD PGOV ECON EAIR JA
SUBJECT: JAPAN'S NEW TOURISM AGENCY: ACTIONS FALLING SHORT 
OF ITS AMBITIONS 
 
¶1.  (SBU) Summary:  Japan's renewed efforts to promote 
tourism to boost the economy face significant challenges. 
MLIT's new Japan Tourism Agency (JTA) aims to increase 
inbound and outbound tourism, but despite revenue gains in 
the tourism industry in recent years, projections for the 
final quarter of 2008 suggest the industry, along with the 
rest of the economy, is slowing.  Given the global economic 
downturn and Japan's recent entry into recession, Japan may 
have difficulty reaching its goals to revitalize tourism. 
End summary. 
 
¶2.  (SBU) The Ministry of Land, Infrastructure, Transport and 
Tourism (MLIT) established the Japan Tourism Agency (JTA) on 
October 1, headed by Commissioner Yoshiaki Honpo.  The new 
agency centralizes GOJ tourism functions and aims to 
coordinate better the various ministries that work on 
tourism-related issues.  Leadership above the 
director-general level is key if the GOJ is to negotiate more 
effectively with foreign governments and have a stronger 
presence within the Japanese bureaucracy, explained Hiroshi 
Fujii, JTA General Affairs Division Planning Office Chief. 
The JTA has not yet established any new policies, but the 
increase in budget and personnel (from 79 to 103 staff 
members) demonstrates the GOJ's emphasis on tourism 
promotion, Fujii asserted. 
 
¶3.  (U) Japan currently ranks thirteenth worldwide for 
outbound tourism and thirtieth for inbound tourism, according 
to MLIT.  In 2003, then Prime Minister Koizumi prioritized 
tourism and began the "Yokoso! Visit Japan" campaign to 
attract more foreign tourists to Japan.  The JTA wants to 
increase further inbound tourism as well as domestic and 
outbound tourism.  (Note:  The Japanese economy benefits from 
outbound tourism due to business generated for travel 
agencies, sales of luggage, and other costs incurred by 
travelers.  End note.)  The MLIT estimates tourism generates 
23.5 trillion yen ($235 billion) annually and domestic 
tourism makes up two-thirds of this figure.  In an effort to 
mitigate some of the economic impacts of Japan's shrinking 
workforce, the GOJ adopted the Tourism Promotion Plan, under 
the 2006 Basic Tourism Law, which aims to achieve the 
following by 2010:  1) increase foreign tourists to 10 
million (from 7.3 million in 2006); 2) increase Japanese 
outbound tourists to 20 million (from 17.5 million in 2006); 
3) increase to 30 trillion yen ($300 billion) the amount of 
money spent by foreign tourists in Japan; 4) increase the 
average number of nights per year Japanese travelers spend on 
domestic overnight trips from 2.77 nights in 2006 to four. 
The plan also envisions a 50 percent or greater increase in 
the number of international conventions held in Japan by 
¶2011. 
 
¶4.  (U) The JTA advocates tourism as a means to counter some 
of the decline in domestic demand resulting from a declining 
and aging population.  The JTA also sees promotion of 
international tourism as a way to increase Japan's 
international prestige and influence.  Despite these goals, 
JTA conducted its inaugural reception solely in Japanese, 
noted a U.S. airline executive who attended the event, 
leaving him to question how the agency would engage in 
additional outreach to attract foreign companies and 
travelers. 
 
Comment 
------- 
 
¶5.  (U) Attracting more tourists may give a needed boost to 
Japan's travel industry, but the JTA's unveiling could not 
come at a worse time in terms of the global economic 
slowdown.  September and October showed the largest declines 
in foreign visitors to Japan since the 2003 SARS outbreak. 
One U.S. airline executive based in Japan told us that 
between August and October, Japanese outbound travel 
decreased 10 percent overall; outbound travel to China 
decreased 50 percent (most likely the result of on-going food 
safety concerns), while outbound travel to the U.S. decreased 
by nearly six percent.  High fuel surcharges and low consumer 
confidence do not bode well for long-distance trips, but the 
Japan National Tourist Organization (JNTO) speculates the 
strong yen may still encourage short-term outbound travel 
 
TOKYO 00003344  002 OF 002 
 
 
from Japan.  However, without a significant change in 
Japanese work habits that discourage longer vacations, 
getting domestic travelers to hit the highway and airports 
more frequently seems difficult. 
SCHIEFFER