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J@pan Inc Newsletter<br>
The 'JIN' J@pan Inc Newsletter<br>
A weekly opinion piece on social, economic and political trends<br>
in Japan.<br>
Issue No. 491 Wednesday November 19, 2008, Tokyo<br>
<br>
As the winter sets in and thoughts turn to either staying inside<br>
(onsen) or going outside (skiing), tourism operators in Japan must be<br>
looking at the strength of the yen with dismay. Some of them anyway, a<br>
recent survey was widely reported, stating that 70 percent of Japanese<br>
inn operators weren't interested in having foreign tourists. This was<br>
probably due to the fact that most did well enough from domestic trade<br>
or simply were uninterested in learning another language rather than<br>
any more xenophobic reasons, as some commentators said. But for<br>
Japanese operators geared towards foreign tourists, such as those in<br>
Tokyo and Hokkaido, the yen is looking increasingly scary.<br>
<br>
According to reports the number of foreign tourists in September was<br>
already down 7 percent compared to the same time last year. Not since<br>
avian flu hit Asia, has Japan seen such a large percentage drop. A<br>
report carried in the Hokkaido Shimbun and quoted in the Japan Times<br>
said that most of the drop came from a loss of visitors from Korea and<br>
Taiwan. Bookings at Niseko in Hokkaido are also down as the Australian<br>
dollar continues to flounder. This morning it was worth about 62 yen.<br>
Remember that a few months back it was up past 100yen. Australian<br>
surfers are probably looking at breaks off Indonesia for their<br>
holidays now instead of swapping their surfboards for snowboards and<br>
heading to Hokkaido.<br>
<br>
On October 1, the Japanese Tourism Agency (JTA) was created to boost<br>
the number of foreign visitors to Japan. The agency, which set the<br>
ambitious goal of attracting 10 million visitors a year and 4.3<br>
trillion yen by 2010, has got off to a rocky start. Considering that<br>
last year 8 million people visited Japan spending 1.6 trillion yen,<br>
the agency has a lot of work ahead of it.<br>
<br>
US tourists will also be looking elsewhere with currencies around the<br>
world plunging against the dollar. Today the dollar was worth 96 yen.<br>
Most analysts agree that the yen will remain strong or even strengthen<br>
while some are predicting the dollar will take a substantial dive down<br>
the track. So Europe and other cheaper destinations will be looking<br>
more and more attractive for those Americans who didn't lose their<br>
houses in the subprime mess or the resulting disaster on Wall Street.<br>
<br>
But Asia is the real market for Japanese tourism. Increasingly the<br>
streets of Ginza have been crowded with cashed-up Chinese from the<br>
mainland keen to buy everything in their path. It has been reported<br>
that Chinese are bigger spenders than Japanese when it comes to the<br>
luxury goods that fill Ginza's flagship stores. As long as the yuan,<br>
struggles against the yen, Chinese tourists will be looking to more<br>
affordable locations in Asia or possibly Australia or Europe.<br>
<br>
A recent Japan Times report mentioned that other factors than simply<br>
the strength of the yen will also impact on tourism here. The JTA has<br>
so far been promoting tourism ambassadors such as Hello Kitty but a<br>
fundamental flaw in coordination between operators in Japan means that<br>
the nation remains behind other Asian nations who have spent decades<br>
honing their industries. For a nation that struggles in its grasp of<br>
English, this can make travel for the average tourist more difficult<br>
than other destinations. While the challenge of navigating a country<br>
using foreign phrases can in itself be attractive to the more intrepid<br>
tourist, your average mum and dad and two kids from Wisconsin may be<br>
turned off by this.<br>
<br>
Of course the strong yen will have an exponentially larger impact on<br>
the economy via industries such as manufacturing, but let's remember<br>
that there will be a lot of tourism operators out there feeling the<br>
pinch this winter too.<br>
<br>
Michael Condon<br>
Editor-in-chief<br>
<br>
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BE THERE WHEN THE MUSICAL YEAR KICKS OFF!<br>
<br>
Speaking at MIDEM / MidemNet 2009<br>
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* David Eun, VP Content Partnerships, Google Inc<br>
* Jay Marciano, President, Madison Square Garden Entertainment<br>
* J.Y. Park, Founder and President, JYP Entertainment<br>
* Jim Balsillie, co-CEO, RIM/Blackberry<br>
* Amit Kapur, COO, MySpace<br>
* Dr. Tero Ojanpera, EVP, Entertainment and Communities, Nokia<br>
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------------------ ICA Event - Nov 20 --------------------<br>
Topic: Focused on the Bottom Line, Using third party solutions<br>
in Japan for SMEs<br>
<br>
Presenter: Tony Fujii - Partner, Fusion Systems<br>
Details: Complete event details at <a href="http://www.icajapan.jp/" target="_blank">http://www.icajapan.jp/</a><br>
(RSVP Required)<br>
<br>
Date: Thursday, Nov 20, 2008<br>
<br>
Time: 6:30 Doors open, Buffet Dinner included, cash bar<br>
Cost: 4,000 yen (members), 6,000 yen (non-members)<br>
Open to all-venue is The Foreign Correspondents' Club of Japan<br>
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<a href="http://www.fccj.or.jp/aboutus/map" target="_blank">http://www.fccj.or.jp/aboutus/map</a><br>
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Entrepreneur Association of Tokyo-Seminar<br>
-Wednesday, December 3rd<br>
<br>
Speaker: Maria Mercedes M. Corrales, Representative Director<br>
CEO and COO of Starbucks Coffee Japan, Ltd.<br>
<br>
Join EA-Tokyo's holiday seminar to hear Maria Mercedes<br>
(Mercy) M. Corrales.<br>
<br>
Mercy joined Starbucks Coffee Japan Ltd. in January 2006<br>
and now overseas the operation of the publicly listed company<br>
with approximately 800 coffee shops in Japan.<br>
<br>
Prior to Starbucks 'Mercy' worked for 31 years with Levi<br>
Strauss and Co where she held a series of key executive<br>
positions in a number of international markets in Southeast<br>
Asia, North Asia (including Greater China) and South America.<br>
>From 2001 through 2005, Mercy was President and Representative<br>
Director of Levi Strauss Japan K.K. and led the publicly traded<br>
Japanese entity to a highly profitable and successful business.<br>
Mercy has built a reputation for strong leadership in building<br>
world class teams, excellent business and brand management<br>
skills, and deep understanding of different cultures and<br>
operating environments.<br>
Mercy has been chosen as the Business Stateswoman of 2008<br>
by the Harvard Business School Club of Japan.<br>
<br>
Please sign up early while seats are available.<br>
Date/Time: Wednesday, December 3rd, 7:00 pm<br>
Location: Shinsei Bank Head Office - 20th Floor<br>
Language: English<br>
Website: <a href="http://www.ea-tokyo.com/" target="_blank">http://www.ea-tokyo.com</a><br>
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