Market Trends

The Japan market is now showing signs of positive recovery following Japan's earthquake in March 2011 and the earthquake in Christchurch on 22 February 2011. With positive arrival indicators through November and strong forward bookings for December, there is confidence the market will continue return to growth during 2013. 

Economy

Key Indicators

Sources:
OECD (GDP Growth)
xe.com (Exchange rates)

Japan's economy has had a turbulent past few years. It was hit particularly hard by the global financial crisis in 2008 and 2009, but a strong rebound in 2010 saw GDP grow by 3.9 per cent, before that momentum was abruptly derailed last year by the Japanese tsunami, related nuclear energy crisis, and the Thailand floods, all of which saw the economy contract 0.9 per cent.

However the OECD and other leading institutions are forecasting Japan to enjoy a period of positive growth from this year through to 2016, and first-quarter figures for 2012 were stronger than anticipated, with GDP growing at an annualized four per cent.

For more detailed information on the Japanese economy, visit www.economist.com or read the economic analysis on New Zealand Trade and Enterprise's Japan country brief.

Outbound Travel

Japanese outbound travel began rebounding strongly in 2010 after four years of contraction. In 2010, 16.6 million Japanese travelled abroad - up 7.7 per cent on 2010. In 2011, 17 million Japanese travelled abroad, up 2.1 per cent on 2011, despite seeing outbound travel fall as much as 50 per cent in the months immediately following the earthquake and tsunami that struck Japan's east coast in March 2011.

Outbound figures from Japan for September and October 2012 show a 0.9 and 3 per cent decrease respectively on 2011. Total outbound travel from Japan continues to be impacted by regional tensions and disputes that are seeing demand for short-haul travel especially to China and South Korea decreasing. Despite this, sales to many long-haul destinations are steadily improving.

For more information about travel style, and definitions for each group, visit the Tourism Strategy Group's website.

Tourism New Zealand's research shows our target market in Japan is looking for a holiday destination where they can have fun, feel happy, refreshed, relaxed, safe and comfortable. Senior Japanese travellers are looking to be in harmony with nature, while younger travellers are seeking a sense of fun and adventure. Being active in the outdoors is a common interest across all age groups. Compared to visitors from other visitor markets, Japanese visitors place less importance on engaging in personal challenges or getting an adrenaline rush.

Airline Update

On 7 December, Air New Zealand returned to daily flights on a year round basis from Narita, Tokyo supplemented by direct flights from Kansai, Osaka for nine months of the year (Kansai flights will operate from July to March).  Over the coming New Zealand summer, Air New Zealand's schedule includes a return of direct flights between Tokyo and Christchurch with three of the seven weekly Narita services operating direct to Christchurch.

All Nippon Airways (ANA) and Air New Zealand opened code-share services between Japan and New Zealand in March 2012 that has significantly improved access from across regional Japan to points across New Zealand. ANA are increasing their promotions of New Zealand to their large customer and retail base.

Air New Zealand will double the size of its Japan charters to 14 charter flights to New Zealand over the 2012/13 summer high season, including for the first time direct charter flights to the South Island.

Korean Air traffic from Japan to New Zealand continues to grow reflecting Korean Air's extensive connections from Japan (daily flights to New Zealand via Seoul from 16 cities across Japan) and its increased capacity from Korea to New Zealand.

A number of other airlines also provide one-stop connections from Japan to New Zealand including Jetstar, Singapore Airlines, China Southern, Cathay Pacific, and Qantas.

Competitor Activity

Japanese arrivals to Australia started to grow in 2012 after a decline in 2011- up 6.1 per cent in August, including a calendar year increase of 7.2 per cent. Canada, which also saw Japanese arrivals fall in 2011 maintained its recent upward trend reporting a 4.6 per cent increase in August, including a calendar year increase of 10.3 per cent. Japanese arrivals to Hawaii were strong in 2012 - up 9 per cent in September, including a calendar year increase of 15.9 per cent.