groupassignment no 1 compare tourism development strategy and master plan of vietnam and japan

Meanwhile, domestic tourist arrivals had been increasing fast, although inbound tourism receipts still surpassed domestic ones.. expenditure of domestic visitors considerably contributed

NATIONAL ECONOMICS UNIVERSITY CENTER OF ADVANCED EDUCATION PROGRAMS

GROUP ASSIGNMENT NO.1

Compare tourism development strategy and master plan of Vietnam and Japan

Nguyen Thu Trang

Chu Anh Tra

Doan Thu Thao

POHE Hospitality Management 61 PhD Hoang Thi Thu Huong Hoang Viet Anh

Phung Viet Anh Hoang Thi Bao Chau Neuyen Thi Hong Ngoc Neuyen Thuy Trang

Ha Thi Trang Linh

Ha Noi, 04/09/2022

TABLE OF CONTENTS

1.2.5.2 Weaknesses 29

2.2.2.3 Develop infrastructure, material and technical facilities for tourism 40

2.2.2.5 Developing and diversifying the tourist market 41

2.2.2.7 Promote promotion, advertising, tourism branding, cooperation and

1 Introduction

1.1 Tourism in Viet Nam

LI, Market

According to the General Statistics Office, international customers to Vietnam

in August 2022 reached 486,400 arrivals, an increase of 38% compared to July and 52.3 times higher than the same period in 2021 because Vietnam has opened up to tourism International flights are restored According to the announcement on August

29, in the 8 months of 2022, international visitors to Vietnam reached more than 1.44 million arrivals, 13.7 times higher than the same period last year (2021) but still down 87.3% over the same period in 2019 when COVID-19 was not yet epidemic Among 1.44 million passengers, 88.2% came to Vietnam by air, 18.5 times higher than the same period last year; by land use 11.8%; and by sea use 0.03%

Year Domestic tourist Foreign tourist Total number of tourist

Number (million) Growth (%) Number (million) Growth (%) Number (million) Growth (%)

Forum’s (WEF) latest 2017 Tourism Competitiveness Index, Vietnam ranks 32nd globally (out of 120 countries) in terms of the volume and attractiveness of its natural and cultural resources and 3rd within the Southeast Asia region

Particularly, Viet Nam has great potential for developing tourism as it is endowed with favorable geographical location, climate and natural conditions, including a long coastline of more than 3,000 km along the country with green forests and majestic landscapes Viet Nam boasts of more than 125 beaches and ranks among the top 12 countries for the most beautiful bays in the world

Viet Nam possesses more than 3,000 landscapes and historical places listed as national heritages Notably, eight natural and cultural heritage of Viet Nam recognized

by UNESCO as world heritages are the Central Sector of the Imperial Citadel of Thang Long, Ha Long Bay, Trang An Landscape Complex, Citadel of the Ho Dynasty, Phong Nha-Ke Bang National Park, Hue Monument Complex, Hoi An Ancient Town and My Son Sanctuary

As of December 2014, UNESCO had recognized 9 Vietnamese intangible cultural heritages which are the Space of Gong Culture in the Central Highlands, Nha nhac-Vietnamese Court Music (Nguyen Dynasty), the Art of Don Ca Tai Tu Music in the South of Viet Nam, Quan Ho Bac Ninh Folk Songs, Ca Tru Singing, Xoan Singing, Worship of the Hung Kings, Giong Festivals in Phu Dong, Soc Temple Viet Nam has 8 world biosphere reserves which include Can Gio Mangrove Forest (Ho Chi Minh City), Cat Ba Island (Hai Phong), Sea and Coastline Kien Giang,

Cu Lao Cham-Hoi An, Ca Mau Cape, Dong Van Karst Plateau Global Geopark in

Ha Giang province was also recognized by UNESCO

Vietnam features premier urban tourism destinations, such as Hanoi, the busy and lively metropolitan of Ho Chi Minh city, and Da Nang Vietnam is famous for limestone mountains; terraced rice fields at Sapa, the country’s former capital of Hue, one of the most beautiful beaches in the coastal city of Nha Trang, and the countryside rice paddies at the Mekong Delta Vietnam is also known as the country with unique social cultural resources embracing colorful ethnic minorities with traditional dress, attractive performance, traditional ceremony and characteristic life style can be observed mainly in the Highland or mountainous areas such as Hmong, Tay, Nung, Jarai, Bahanar, Sedang, Ede, Cham tribes, At present, many efforts have been made

to divert tourist flow to new tourist resources in combination with major tourist destinations

Tourism revenue has been increasing fast in previous years In the year 2019, Vietnam welcomed 18 million international visitors (a raise 16% compared to 2018),

serving 85 million domestic visitors (a raise over 6% compared to the previous year) Related to the number of tourists, the tourism revenue has reached a new record when estimated at over VND 726 trillion (as nearly USD 31.5 billion), accounting for nearly 11.5% of the national GDP According to the statistics of GSO, the Vietnamese tourism revenue was up to VND 68 trillion (approximately USD 2.95 billion) in 2009 and then reached VND 726 trillion (approximately USD 31.5 billion) in 2019 During the period of 2000-2019 (20 years), the tourism revenue of Vietnam was 42.5 times higher as compared to the 2000 level

Due to the robust demand of both domestic and foreign tourists, the number of accommodations has significantly grown in recent years In detail, by the end of 2018, the country had about 15.6 thousand accommodation establishments with 353.2 thousand standard rooms (an increase of 56.7% of the number of establishments and 61.6% of the number of standard rooms compared to 2013) Besides, many large-scale accommodation facilities with high standards have been put into operation throughout the country

11.3 Industry

Tourism has become one of the major sectors within the economy of Vietnam

In recent years, with a direct GDP contribution of over 9% in 2019 In the same year, Vietnam also welcomed a record-high number of international visitor arrivals Tourism has been an essential part of economic growth in recent years The country had one of the highest numbers of international tourist arrivals in the Asia Pacific region in 2019, with yearly increases in tourism receipts before 2020 Visitors from East Asian countries accounted for the largest group of international tourists in Vietnam Meanwhile, domestic tourist arrivals had been increasing fast, although inbound tourism receipts still surpassed domestic ones

Total tourism receipts: VND 755 thousand billion (approx USD 32.8 billion),

of which:

Tourism receipts from inbound tourism (tourism exports): VND

421 thousand billion (approx uSD 18.3 billion), occupying 55.7% Tourism receipts from domestic tourism: VND 334 thousand billion (approx uSD 14.5 billion), occupying 44.3% -> Lay image 2 thui

Direct contribution of tourism to the GDP: 9.2%

Tourism receipts from inbound tourism USD 18.3 billion

USD 32.8 billion

receipts estic tourism:

Image 3: Tourism receipts from inbound and domestic tourism, 2015 - 2019

(VND thousand billion) (Source: Calculated according to Tourism Satellite Accounts (TSA)

recommended by UNWTO) Tourism receipts from inbound tourism are considered tourism exports, which increased by 2.1 times during the period 2015-2019, from VND 197 thousand billion

(USD 9 billion) in 2015 to VND 421 thousand billion (USD 18.3 billion) in 2019, recording an average annual growth of 20.9% Thanks to the rise of Viet Nam’s economy, Vietnamese people have been capable of spending more for tourism purposes expenditure of domestic visitors considerably contributed to total tourism receipts of the country from 2015 to 2019, tourism receipts from domestic tourism rose by 2.1 times (an average annual growth of 21.0%), while the number of domestic visitors increased only by 1.5 times in the same period

According to the reports of the World economic forum (WEF), Vietnam tourism’s competitiveness index jumps from 75th/141 economies (2015) to 63rd/140

(2019)

The best indicators of Vietnam tourism include: Price Competitiveness (22nd/140), Cultural re- sources and Business Travel (29th/140), Natural resources (35th/140) In Southeast Asia, Viet Nam’s Cultural resources indicator ranks 2nd, standing just behind Indonesia; Natural resources indicator ranks 3rd, behind Thailand and Indonesia

The most improved indicator is Visa requirements, up by 62 places from 116th/136 (2017) to 53rd/140 (2019) The advancement of the indica- tor was driven

by e-visa policy piloted by the Gov- ernment since early 2017 By 2019, the policy was applied to the nationals of 80 countries

security hygiene & labor & tourism infrastructure port infrastructure & business

market infrastructure travel Enabling environment

Note: the lower ranking position has the better performance

Source: World Economic Forum

Image 4: Score and rank of Vietnam tourism Competitiveness Index

1.1.4, Related and supporting industry

In a developing economy like Vietnam, a boom in the tourism industry can help

to generate a sustainable amount of economic benefits directly through hotels, resorts, restaurants, pubs, taxis, souvenir sales, etc., and directly to tourism-related businesses through the supply of goods and services

In order to push for tourism development growth in Vietnam, the local government has put effort into improving infrastructures like airports, public transportation networks, sewage systems, electricity, and roads

1.1.4.1, Airline

Vietnam is the world’s seventh fastest-growing aviation market For the period 2016-2021, Vietnam is expected to have the highest average growth rate in Southeast Asia at 17.4%, compared to the 6.1% in ASEAN The major drivers of this development include a growing tourism industry, the emergence of low-cost carriers, and strong economic growth

In 2019, Vietnam’s airports welcomed 116 million passengers, an increase of 12% compared to 2018 Cargo increased by 11% to 1.5 million tons and aircraft movement increased by 13% to 740,000 flights

Vietnam has 22 airports, of which 11 are international and 11 are domestic The Government has set key priority for airport infrastructure investment from now till

2030 by investing in the construction of 6 new airports and upgrading most tourism hub airports with a total investment of approximately $16 billion to increase to a total

of 28 airports (14 international and 14 domestic airports)

Currently, Airports Corporation of Vietnam (ACV), the largest airport operator

in Vietnam, is working to expand its two largest airports — Tan Son Nhat (Ho Chi Minh City) with investment in $470 million- 20MPA T3 terminal and Noi Bai (Hanoi) with investment in 30MPA new T3 terminal to address overloaded capacity issues Other short-term expansions are $129 million - SMPA T2 Terminal at Vinh Airport,

$155 million -SMPA T2 terminal at Cat Bi Airport In the longer term, the construction

of the new giant Long Thanh International Airport (Dong Nai) -Phase 1, a $5.45 billion- new 25MPA T1 terminal, started in 2021 and a smaller new Sapa project is also in the pipeline Other long-term expansion projects at Danang, Cam Ranh, Dong Hoi, Dien Bien Airport are under the investment preparation phase

1.1.4.2 Roads

The total length of the Vietnamese road system is about 222,179 km, mainly national roads and provincial roads (source: Vietnam Road Administration, 2004) The national road system length is 17,295 km The provincial road system 1s 27,762 km long The road network is relatively well developed, but in poor condition Due to congestion and lack of safety, the average speed on the national roads is a mere 50 kilometers per hour (31 mph)

Currently, the Ministry of Transport is paying special attention to the state by drafting, promulgating and organizing the implementation of full legal documents to create the best conditions for development Specifically, there are already 5 specialized laws, decrees, circulars guiding and implementing the whole sector

In addition, transport development strategies for the whole sector, specialized planning, provinces and cities directly under the Central Government, etc have been developed, approved and implemented That is the basis and good legal corridor for the industry to thrive

Vietnam has a deeply integrated international economy As a result, the volume

of customers, goods on exit, import, export, and transit increased This has created conditions for the development of road transport and can exchange and share information with countries around the world

Expressways are a rather new concept for Vietnam Traffic is growing rapidly but the major roads are dangerous due to inappropriate design and an inappropriate traffic mix Expressways would solve these problems along the key corridors, by separating high speed traffic from slower, local traffic

Vietnam currently recognizes two classes of expressway Both have a minimum

of two lanes in each direction, but Class A has grade separated interchanges, while Class B has at-grade intersections There are 4 design-speed categories: 60, 80, 100 and 120 km/h.Generally all cars, buses and trucks are permitted on the expressway but công néng (agricultural vehicles) and all types of motorcycles are not

1.1.4.3, Water Transport

Viet Nam has a dense natural river network, distributed along the length of the country, which is very convenient and creates great potential for the development of inland waterway transport The country has more than 3,500 rivers and canals Most

of the rivers flow into the sea through 124 estuaries, with a total length of more than 80,500 km Of this, about 42,000 km of rivers and canals can be exploited for

waterway transport

Every year, inland waterway transport accounts for approximately 18% of goods transport and 6.8% of total transport volume The average growth rate is from 8% to 12% per year In addition, inland transportation has many advantages compared to other transport means, such as low freight rates and suitability for all sizes and weights

Regarding waterway routes, the northern region has formed three main transportation corridors: Quang Ninh-Hai Phong-Viet Tri via the Duong River, Hai Phong-Ninh Binh via the Luoc River, and Ha Noi-Lach Giang The southern area has two main river systems: the Dong Nai River system and the Mekong system with two major waterways from the East Sea through Vietnam to Cambodia and Thailand Inland waterway transportation, however, is experiencing certain inadequacies The network is still concentrated in the north, while less developed in the southern and Mekong delta areas

Currently, about 77% of the transportation market is occupied by road transport This gap between this and waterway transit is too big There are many reasons why waterway transport has not developed, one of them being that the infrastructure (railways, roads and inlet channels) connecting to ports and wharves is not synchronized

Connections between waterways, railways and roads are almost zero so businesses must spend a lot of money on logistics costs or costs to load or unload goods and carry goods from trains to boats and vice versa The cost of waterway transport is lower than other transportation forms but the transfer cost is high Also, little investment in waterways leads to difficulties in maintenance In addition, this type of transportation has not been properly developed due to the inadequate infrastructure of inland waterways

Inland waterway transportation investment is still fragmented and owners of waterway transport means are mainly private, while enterprises pay little interest in investing in container loading and unloading facilities at sea ports

To overcome these inadequacies and help develop waterways, the Prime Minister issued a decision regulating mechanisms and policies to encourage the development of inland waterway transportation However, up to now only some mechanisms, such as increasing capital maintenance, have been implemented, the remaining incentive mechanisms to develop transport and freight ships such as corporate income tax and interest rate, have not been concretised

1.1.4.4, Electricity

Vietnam currently has 73 power plants (hydro, thermal, gas, renewables source), 48 of those with capacity greater than 30MW As Vietnam Electricity (EVN)’s self-financing and other sources of debt financing only meet about 66% of the total investment requirement, IPPs are expected to carry a large portion of the investment in the power generation sector, including those to be developed by foreign investors The Vietnamese government shall only maintain its monopoly of electricity transmission grid(s) to ensure national energy security Vietnam’s existing energy infrastructure is inadequate with weak grid capacity, which will obstruct the integration of new capacity, particularly from renewable energy projects According Vietnam’s National Power Transmission Corporation (EVNNPT), an EVN subsidiary, which operates a total of 153 substations, 25,236km of transmission lines (7,996 km

of 500 kV lines and 17,240km of 220 and 110 kV lines), and a total transformer capacity of 91,256 MVA (33,300 for 500kV lines and 57,956 MVA for 220kV and 110kV lines) The EVN reported that 100% of the districts were connected to electricity; 99.7% of the communes with 98.69% of rural households have access to the power grid These figures may be exaggerated but were according to the plan 1.1.4.5, Telecommunications

Vietnam’s telecommunications industry played a central role in the country’s rapid technology adoption, industrial transformation, and economic growth in the last decade Telecommunication services, including mobile and broadband subscriptions,

as well as mobile data, have become indispensable in the daily life of people in Vietnam, where the share of internet users and mobile phone users are among the highest in the Asia Pacific region

One of the most significant achievements of the telecommunications sector in Vietnam was providing country-wide internet coverage, especially of mobile internet Mobile networks such as 3G and 4G have reached almost all the Vietnamese population, next to an increasing number of terrestrial fixed-line broadband subscribers In addition, internet users in Vietnam have access to a relatively high internet connection speed and download speed compared to other countries in the same regions Furthermore, the government has developed a concrete plan to implement and commercialize the 5G network in 2022, starting first in urban areas and high-tech industrial zones, which should further improve the internet connection quality in the country

State-owned enterprises Viettel and VNPT are the leading telecommunications service providers in Vietnam Operated by the Ministry of Defense, Viettel dominates the mobile-cellular service segment, with over half of the total market share Together with VNPT, the two state-owned telecommunications groups held approximately 80%

of the broadband service market in 2020 On the other hand, non-state Vietnamese telecommunications firms such as FPT Group have also gained a strong foothold within this sector

1.1.5 SWOT and competitors

11.5.1, Strengths

Vietnam has a favorable geographical location, featuring a lengthy coastline with gorgeous scenery, beaches, islands, and archipelagos In addition, the climate is tropical This is a big advantage for Vietnam's tourism business since superb geography is one of the most appealing reasons why international visitors visit Vietnam

It has a vast history of about 4000 years, with a variety and wealth of cultural traditions, culinary aristocracy, and Eastern religious life Vietnam is home to 54 ethnic groups and is varied and rich in traditional festivals, culture, and food Each ethnic group and area has its own culture and food, which adds to the richness and diversity of Vietnamese culture and food as a whole This makes Vietnamese culture and food a colorful picture that shows the uniqueness of each ethnic group and area This nation has a stable political and security backdrop, which is also advantageous for tourist growth Furthermore, coupled with the image of high openness, a dynamic and rapidly rising economy, and involvement in free trade agreements with many countries and areas across the globe, Vietnam has been shown

to be a nation with an increasing effect on the global economy Economic measures are promoting tourist development This is also a benefit for the tourist sector, which will continue to expand rapidly as a result of economic expansion

With a rapidly expanding economy, the Vietnamese government is investing more and more in infrastructure, constructing large-scale resorts and world-class hotel systems Many projects for transportation infrastructure, telecommunications infrastructure, and synchronous service infrastructure for tourism have been created or updated in recent years In general, the national infrastructure system may help the

tourist industry grow Also, Vietnam's location in the Asia-Pacific region has helped it take advantage of the area's quickly growing middle class It also relies on a good balance of natural and cultural resources to keep tourists coming

This nation has a sizable population and a significant young labor force Furthermore, the youthful, active population and the warm spirit of the people are assets to the growth of tourism Also, fast economic growth raises the income per person, which may make Vietnamese people want to travel more in the future There is a large Vietnamese population living in various industrialized nations, estimated at around 5 million individuals The overseas Vietnamese are a tourist strength in Vietnam since they have a high desire to visit their homelands

Despite investments in infrastructure, the system still does not match the need for tourist growth Overcrowding and overload at airports and metropolitan centers, as well as a lack of motorways connecting regions, have hampered the "booming tendency" of the Vietnamese tourist industry in recent years The issue of traffic congestion, caused by a huge number of passengers as well as a lack of connecting

competitiveness

Environmental contamination is a concern in the tourist sector and a glaring weakness in the Vietnamese tourism industry Food safety problems are caused by pollution, and it costs more to make sure food safety inspections are done to attract tourists

Despite a large labor population, there is a scarcity of professional and high- class human resources In general, business management skills have yet to meet the

demands of the competitive environment and the integration trend Furthermore, communication skills are one of the major deficiencies among Vietnamese tourist personnel There is still a shortage of bilingual guides, and the present human resources barely fulfill roughly 70% of the labor needs

11.5.3, Opportunities

The economy's high openness strategy may assist in attracting more and more foreign resources to Vietnam The tourism industry, which is linked to economic exchange activities and investment linkages, has the potential to attract additional foreign financial sources to improve the tourism business system and lodging infrastructure

Benefit greatly from the Asia-Pacific region's rapid expansion Southeast Asia 1S gaining popularity among international travelers, which might have a favorable and considerable influence on the Vietnamese tourism sector Increased interest in Southeast Asian nations may provide an excellent opportunity to capitalize on the existing tourist resources in Vietnam

Security problems are getting worse in many important areas and tourist markets around the world This is a great chance for Vietnam to use the stability of its society to attract more tourists in the near future In the context of the Fourth Industrial Revolution, the development of information technology on the Internet platform has given developing countries (like Vietnam) a lot of chances to ageressively and effectively promote images and tourism services, which helps tourism development

1.1.5.4 Threats

The degree of competition from other Asia-Pacific nations is increasing Vietnam's tourism industry is still in its early stages of growth, and its managers don't have a lot of experience This means that business needs to improve its competitiveness to catch up with the development of the most advanced countries in the Asia-Pacific region

Vietnam's problems have gotten worse over time because of things like deforestation, natural disasters, and diseases Many restaurants, hotels, and resorts avoid investing in waste treatment systems as one of the sources of pollution in the

marine and tourist environments Furthermore, the rising urbanization of the provinces poses significant hurdles to the establishment of a Vietnamese tourist sector with an Eastern character Lastly, climate change has caused some worries about the growth of tourism in low-lying places like the Mekong Delta in Vietnam

Tourism growth may exacerbate regional economic disparities If the government doesn't make sure that everyone benefits from economic growth, the growth of tourism could make things worse by putting rich and poor people into conflict There were various financial and economic crises with ten-year cycles in the global economy In the setting of high levels of globalization, Vietnam's tourism is vulnerable to worldwide economic crises Furthermore, the reliance on a single area is

a danger to Vietnam's tourism since the great majority of foreign tourists to Vietnam come from Northeast Asia, accounting for 60% of all visitors in 2018 (VNAT, 2020) The dangers to community health Some infectious disease outbreaks have expanded dramatically in recent decades, and as tourism and travel activities increase quickly, the worldwide spread of the illnesses is projected to accelerate

11.5.5, Competitors

Although Cambodia, Myanmar, and Laos had average growth rates of 4.3%, 3.6%, and 3.1% in terms of foreign tourists over the last three years, the number remains a tiny percentage in the area The Philippines and Indonesia are Vietnam's two closest rivals, both of which are seeing rapid expansion in terms of volume and income Despite its present ranking behind Vietnam, the Philippines' potential, possibilities, and variety of tourist development and goods are not less competitive According to World Bank updates on tourism growth in East Asian developing nations, the number of domestic tourists in Vietnam is four to nine times that of foreign visitors Nonetheless, this figure is 25 times higher in Indonesia and 50 times higher in the Philippines (World Bank Group, 2017, p 89) Despite encouraging development in tourist arrivals over the last two years, Vietnam remains behind other tourism developed nations in the area such as Thailand, Malaysia, and Singapore in terms of absolute visitor numbers and income Although Indonesia has slightly more tourist arrivals than Vietnam, its revenue ts far greater

Table 15: International tourist arrivals to ASEAN countries

No |Country (1000) Shares in ASEAN (%)

No; | Country Table 16: International tourism revenue by ASEAN countries (million USD)

Ý 2 2010 2014 2015 2016 3-consecutive year average

Image 5: International tourist arrivals to ASEAN countries and international tourism

revenue by ASEAN countries 1.1.6 Destination Mission, Vision and Actions

Ensuring the balance between tourism demand and supply; promoting national advantages and the strengths of each region or province; using the resources rationally and efficiently

Compliance with planning methods

1.1.6.3 Goals

By 2025

Vietnam becomes an attractive destination, striving to be among the top three countries in tourism development in Southeast Asia and 50 countries with the world's leading tourism competitiveness, of which all 14 criteria of tourism competitiveness have increased, in line with the requirements of sustainable development

Total revenue from tourists: Reaching 1,700 - 1,800 trillion VND (equivalent to

77 - 80 billion USD), an average growth of 13-14%/ year; The direct contribution to GDP reaches 12-14%

Create about 5.5-6 million jobs, of which about 2 million are direct jobs, an average growth of 12-14% / year

Regarding tourists: Striving to receive at least 35 million international visitors and 120 million domestic visitors, maintaining the average growth rate of international visitors from 12-14% / year and domestic tourists from 6 - 7% / year

By 2030

Tourism is truly a key economic and sustainable development sector Vietnam has become a particularly attractive destination, one of the top 30 countries with the world's leading tourism competitiveness, meeting the requirements and goals of sustainable development

Total revenue from tourists: VND 3,100 - 3,200 trillion (equivalent to USD 130

- 135 billion), an average growth of 11-12% / year; The direct contribution to GDP reaches 15 - 17%

Create about 8.5 million jobs, including 3 million direct jobs, an average growth of 8-9% / year

Regarding tourists: Striving to receive at least 50 million international visitors and 160 million domestic tourists; maintain the average growth rate of international visitors from 8-10% / year and domestic tourists from 5-6% / year

1.1.6.5 Action

(sustainability, climate change, )

tourism

value) and increasing tourist experience based on the advantages of resources of each region and locality, in accordance with market needs and improving the competitiveness of Vietnam's tourism

Integration in tourism

1.2, Japan

1.2.1 Market

Japan's inbound tourism market has shown remarkable growth, the number of international tourists going to Japan in 2019 reached a new high of 31.88 million (2.2% higher than the previous year), marking the seventh straight year of record highs for Japan's inbound tourism business (Figure 1) Japan gained around 46.1 billion USD in foreign tourist spending from visitors to Japan in the same year, propelling the country to seventh rank in the globe, ahead of Germany and Australia The travel and tourism sector contributed 359 billion USD to Japan's GDP, placing it third in the world behind the United States and China

(millon persons

31.19 31.88 28.69

24.04 19.74 13.41 10.36 8.61 8.36

il E iil [|

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

rce) Created based om data troen INTO

Figure 1: Number of foreign visitors to Japan (2010 to 2019) Domestic travel, comprising day excursions and overnight travels by domestic residents, accounts for about 80% of the entire Japanese travel industry in 2019 (27.9 trillion yen), while the inbound market is still growing, accounting for just under 20% (Figure 2)

Figure 2 Breakdown of travel expenditure in 2019

(Overall 27.9 trillion JPY)

In 2020, with the outbreak of COVID-19, visitor arrivals from Japan fell by 81% While cross-border travel restrictions are expected to remain in place for some time, U.S destination marketing organizations (DMOs) are strengthening their relationships with Japanese industry counterparts in preparation for the sector's return

in 2022 According to the Japan National Tourism Organization (JNTO), the expected number of overseas visitors to Japan in June 2022 was around 120.400, an increase of 101.5% over the previous year and a decrease of 95.8% over June 2019 According to preliminary estimates from the Immigration Service Agency of Japan, the number of Japanese abroad visitors in June 2022 amounted to 171.529, 459.3% increase over June 2021 and 88.7% decrease over 2018

Japan's tourist industry is on the verge of becoming the country's principal economic engine The Japanese government's exponential expansion in tourism throughout the years recognized inbound tourism as a successful enterprise Since

2013, the progressive relaxation of travel visa requirements for countries like Thailand, the Philippines, and China, as well as a rise in the number of cheap airlines

in Asia, have made Japan an attractive destination for inbound tourism The Japan

21

National Tourism Organization (JNTO) and growing knowledge of the benefits of inbound tourism also help to grow the business However, linguistic and cultural limitations account for certain market restraints According to this analysis, the Japan Inbound Tourism Industry is anticipated to develop at an astounding 11.65% CAGR from 2020 to 2026 By 2026, the Japanese tourism market is estimated to reach $ 3.1 billion

1.2.2, Resources

Japan is the most amazing tourist destination and it offers many unique experiences that cannot be found in any other part of the world The culture of this country is an interesting blend of Eastern traditions and Western modernity that can be seen everywhere Japan is one of the oldest civilizations and has a beautiful and diverse history The stunning, diverse scenery with mountains and breathtaking views, which are much appreciated by the Japanese, offers so many different experiences that attract tourists from all corners of the world

1.2.2.1, Natural resources

Although many of these natural-resources attractions have been altered slightly

by human hands to make it accessible to visitors, the elements of nature can still be observed, and are a spectacular sight to behold Japan is famous for its many natural wonders:

Mount Fuji is famous all over the world as a place to visit during any season

of the year But the majestic Fujisan is not ‘just a mountain’ as it takes a very special, sacred place in Japanese culture Climbing Mount Fuji is at the top of many people’s bucket list and an estimated 400.000 people climb the volcano each year The climbing season of the highest peak in Japan lasts from early July to early September Come spring, countless cherry trees around Japan burst into color, a spectrum that runs from the palest of pink to a riotous magenta That's the cue for locals to gather in parks and along river banks for cherry blossom viewing parties called hanami The blossoms last only for a week or two, symbolic of life's ephemeral nature, but also a reminder to seize the present

Abukumado cave is a large limestone cave located in the Fukushima prefecture After the cave was discovered, they started to make it more accessible to visitors and installed various, pretty lights throughout the cave, however tourists can still enjoy the natural rock formations of stalactites and stalagmites

The only large sand dune in Japan, this is a popular destination for locals Desert vibes are evoked when visiting this place due to the large sand dune mimicking the sloping sands of hot, desert locations, but it's located by the Sea of Japan

As well as many other natural attraction such as: Akiyoshi Limestone Cave, Takachiho Gorge, Fukiware no Taki Waterfall, Narusawa Ice Cave, Beppu Onsen, 1.2.2.2 Man-made and cultural attraction

When it comes to visual feasts, few countries are as enticing as Japan From the natural beauty of its countryside to its ancient castles, shrines, and temples, to boldly rising futuristic cityscapes Many of the amazing landmarks make “The Land of the Rising Sun” such a stand-out destination

In the history of Japan, a large number of castles were built, many of which were destroyed during the many battles or natural disasters like earthquakes But there are some beautiful castles in Japan that still exist and can be visited, some of which are also designated UNESCO sites There are an estimated 80.000 temples and shrines in Japan of all sizes and some are over 1.000 years old The Buddhist temples and zen gardens are incredibly beautiful which provide tourists with experience of how peaceful and magical these places actually are

There’s a distinct otherworldliness to the Arashiyama Bamboo Grove Located on the western edge of Kyoto, this bamboo forest is serene, secluded, and sprawling, making it the perfect spot to take a stroll and reflect

The Nonomiya Shrine is within the bamboo grove This shrine may be modest

in size, but it has a fascinating history that involves classic Japanese literature, imperial princesses, priestesses, ancient purification rituals, and more Tourists can learn all about the shrine (and the Arashtyama Bamboo Grove)

Another type of unique cultural event are the Grand Sumo Tournaments that take place at each odd-numbered month and last for two weeks Sumo is Japan’s national sport, but not just a sport In fact, sumo is full of shinto rituals and watching a sumo match with a guide will help people to understand this ancient sport even better

At any time of the year, Japan hosts a number of events and matsuri for anyone to enjoy Matsuri are traditional Japanese events where often floats, called mikoshi, are carried around between temples and shrines They often take place in the summer and attract thousands or even millions of visitors with their energetic atmosphere, amazing street food activities for everyone to enjoy In wintertime, some unique and great festivals like the Kamakura snow hut festivals are held around the country There are also several illumination festivals with spectacular light shows and

decorations, some only over the Christmas period where others last well into spring Another world famous festival is Sapporo’s Snow Festival that attracts millions of visitors each year with spectacular ice sculptures and cozy winter scenes

Some other man-made tourism resources such as: Ashikaga Flower Park, Fushimi Inari Taisha, Kawachi Wisteria Garden, Tokyo Skytree (and Tokyo Tower) 1.2.3 Industry

The tourist sector in Japan is poised to become a significant economic engine for the country Japan hosted the Olympic and Paralympic Games in 2021, giving its people, culture, and landmarks a global stage Tourism has recently been positioned as

a driver of social change and economic prosperity in Japan

Through the reviewing of the studies on Japan’s Tourism we can see that tourism has been increasing in Japan since the early 1960s, benefiting from Asian nations' fast economic expansion According to Japan Association of Travel Agents research, family vacations continue to be the most popular reason for Japanese travelers to visit In recent years, city and conference tourism has grown significantly

in importance Tourism contributes as much to the total economy as leading industries such as autos, having a significant influence on employment In comparison to other nations, the percentage of tourist consumption by foreign visitors to overall tourism consumption remains quite low

Despite the fact that Japan has the world's third-largest economy (behind only the United States and China), international visitors are still unaware of the country and its assets Japan has numerous rich natural and cultural assets that extend well beyond its three major urban regions, but it needs to raise awareness of everything it has to offer among tourists across the world For the tourist industry to thrive, the public and private sectors must collaborate to provide an excellent visitor experience Under the supervision of a newly created public-private partnership, Japan may achieve simultaneous progress in boosting its attractiveness to many different categories of travelers while tackling not only surface-level difficulties but also fundamental barriers to development in inbound tourism The conditions and timing are ideal for Japan to rise to the top tier of tourist-oriented locations; what is now required is a concerted, deliberate effort

Today, the tourist business in Japan not only helps to revitalize the regional economy, boost job possibilities, and grow all other aspects of the nation's economy,

but it also plays an important role in establishing mutual understanding with other countries Tourism is vital in establishing mutual understanding with other nations as well as in stimulating demand for the nation's economy by increasing the number of individuals engaged in trade

Tourism expenditure in Japan 2012-2021

The total tourism expenditure of travelers in Japan amounted to 9.4 trillion Japanese yen in 2021, a decrease from about 28 trillion yen in fiscal 2019 With the advent of the COVID-19 pandemic, inbound travel was virtually halted, while domestic travel guidelines and indications shifted during this period several times While domestic travelers accounted for the majority of tourist spending in Japan even prior to the pandemic, the expenditure of inbound visitors grew steadily in recent years, contributing to the sharp decline in expenditure in 2020

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travel was heavily restricted International tourist arrivals, as well as foreign visitors’ consumption was on the rise during the past few years until the advent of the pandemic

Figure 4: Tourism expenditure by domestic visitors in Japan 2011-2021 1.2.4, Related and supporting industry

1.2.4.1 Airline

Japan has a very advanced and well-maintained infrastructure, which undergoes regular upgrading and expansion Both the private and public sectors undertake various infrastructural projects and operate their respective services

In April 2022, Japan had almost 100 airports, including 28 major airports and

54 regional airports The control of the airports lies in the hands of either national or regional authorities, except for four company-administered international airports Japan benefits from a modern and extensive air transportation system Airports

in Tokyo, Kagoshima, Osaka, and Kansai provide international services The major international airports are Narita, which serves Tokyo; Kansai, which serves Kobe, Kyoto, and Osaka; and Chitose (Sapporo) and Sendai in Northern Japan, which serve many northern cities Major airport construction projects include a second runway for Kansai International Airport, a $7.2 billion-project for Central Japan International Airport in Ise Bay, and the New Kitakyushu Airport in the Kyushu region located in the western part of Japan Japan has a large air passenger fleet consisting of private and public airlines

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1.2.4.2 Railway

Japan has a very extensive and modern road network It consists of 1,152,207 kilometers of highways, of which 863,003 kilometers are paved They include 6,114 kilometers of expressways Japan is famous for its high-speed trains

The public transportation network in Japan is efficient Especially in the bigger cities, the system is incredible With trains or metro’s departing every few minutes (during the day) it is amazing how fast people can commute from one part of the city

to another part within a short period of time

The famous shinkansen, also known as the bullet train, takes travelers to all parts of the country As a tourist it is definitely the most convenient, reliable, fastest way of discovering Japan The best part for international tourists is that they can purchase a Japan Rail Pass that will give them unlimited travel for a designated period

of time throughout the country

1.2.4.3 Water transport

As a country surrounded by water, Japan has developed a very extensive and modern sea transportation system It includes many ports and harbors such as Akita, Amagasaki, Chiba, Hachinohe, Hakodate, Higashi-Harima, Himeji, Hiroshima, Kawasaki, Kinuura, Kobe, Kushiro, Mizushima, Moji, Nagoya, Osaka, Saki, Sakaide, Shimizu, Tokyo, Tomakomai, and Yokohama Japan has a very large merchant-marine fleet, which is a necessity for its international trade and for ensuring an uninterrupted arrival of raw material, fuel, foodstuffs, and other necessary products The fleet comprises 662 ships with a total capacity of 13,039,488 tons

1.2.4.4, Electricity

The Japanese power-generation industry includes both private and public companies, though in 1999, only 5% of the nation's power was created by the private sector, a proportion that is expected to increase with industry deregulation (a lessening

of government controls) In 1998, the proportion of electricity generated from these sources was 57 percent, 32 percent, 9 percent, and 2 percent, respectively In that year, total electricity produced amounted to 995.982 billion kWh, well above the consumption of 926.263 billion kWh Japan's electricity 1s derived from 4 major methods: thermal (using oil, liquefied natural gas, and coal), nuclear, hydro (water power), and non-conventional (geothermal, solar, and wind)

1.2.4.5, Telecommunication system

Japan's telecommunication system is very advanced It consists of private and public service providers, but a public company, Nippon Telephone and Telegraph (NTT), is the largest provider, controlling about 95% of fixed telephone lines In 1997, there were 60.3 million fixed telephone lines in use By 1999, there were 30.6 million cellular phones in operation, a 260% increase in 2 years, and 6.3 million personal handphone systems (PHS), cheaper versions of cellular phones with limited signal coverage Personal computer ownership is high: 237 PCs per 1,000 population, in

1998, compared to 459 per 1,000 population in the United States, which has the world's highest rate of PC use In 1999, there were 357 Internet service providers in Japan The rate of Internet use is low: 13.34 per 1,000 population in 1999, as compared with 112.77 in the United States Japan has a very large television and radio industry operated by private and public sectors In 1997, there were 86.5 million television sets and 120.5 million radios in use

1.2.5 SWOT and Competitors

1.2.5.1 Strengths

Japan has numerous rich natural and cultural assets

Strong Policymaking: The Japanese government has been effective in making strong and clear decisions in policy making and public administration, resulting in a developed economy With a rapidly expanding economy, the Japanese government is Investing increasingly in infrastructure, constructing large-scale resorts and high-class hotel networks In recent years, several projects for transportation infrastructure, telecommunications infrastructure, and synchronous service infrastructure for tourism have been created or renovated In general, the national infrastructure system may help the tourist industry grow

Renowned for efficiency: Japan has long been known for its capacity to operate vast and complex systems efficiently and effectively, making it a top choice for a wide range of sectors

Skilled labor: The Japanese people are regarded as highly skilled and devoted, continuously producing great results for any task they are assigned This contributes to Japan's reputation as a well-known brand for successful firms Furthermore, the

young, active population and the people's friendly character are positive factors for tourist growth

1.2.5.2 Weaknesses

Natural Catastrophes: Japan has always been vulnerable to natural disasters such as earthquakes, tsunamis, volcanoes, typhoons, floods, and mudslides, all of which work against the country

Overcrowding in big cities: The country is experiencing overpopulation in large cities like Tokyo and Osaka Overcrowding and overload at airports and metropolitan centers, as well as a shortage of motorways connecting regions, have hampered Japan's "booming tendency" in recent years The problem of traffic congestion caused

by a huge number of passengers, as well as a lack of connecting infrastructure, causes problems that might reduce Japanese tourism's competitiveness

Low Birth Rate: Another source of concern for Japan is the country's low birth rate, which is already having an impact on the country's economy in sectors such as employment and housing markets, consumer spending, and company investments Despite possessing skilled and high-class human resources, the low birth rate is producing a severe labor shortage

1.2.5.3 Opportunities

Emerging Markets: Japan is a developing market for global consumer goods This can be a great opportunity for a country like Japan to tap into these customers and expand its economy Tourism, which is linked to economic exchange activities and investment linkages, has the potential to attract additional foreign financial sources to improve the tourism business system and lodging infrastructure

Growing E-commerce: The country's rise of e-commerce also gives a unique chance for Japan's new generation entrepreneurs to investigate and exploit this to the best of their overall economic growth The advancement of information technology on the Internet platform in the context of the Fourth Industrial Revolution has offered several chances for Japan to aggressively and effectively promote pictures and tourism services in order to boost tourism growth

1.2.5.4 Threats

Trade Restrictions: Doing business in Japan is difficult There have been severe restrictions and regulations in place regarding the country's foreign commerce potential When it comes to international investments, such regulations act as a barrier The global economy's insecurity There was a financial and economic crisis with ten- year cycles Tourism will become readily entangled in worldwide economic crises in the setting of increasing levels of globalization

Tourism growth has the potential to exacerbate regional economic disparities If the government does adopt inclusive economic development plans, tourism expansion may contribute to social instability due to conflict between affluent and poor people The dangers to public health Some infectious disease outbreaks have expanded dramatically in recent decades, and as tourism and travel activities increase rapidly, the worldwide spread of the diseases is projected to accelerate

1.2.4.6 Competitors

According to worlddata:

world in absolute terms In East Asia, it ranked 4th Japan generated around 11.40 billion US Dollar in the tourism sector alone This corresponds to 0.23% of its gross domestic product and approximately 35% of all international tourism receipts in East Asia

in the world in absolute terms In East Asia, it ranked 3rd South Korea generated around 11.78 billion US Dollar in the tourism sector alone This corresponds to 0.65%

of its gross domestic product and approximately 36% of all international tourism receipts in East Asia

world in absolute terms In East Asia, it ranked 5th China generated around 40.39 billion US Dollar in the tourism sector alone This corresponds to 0.23% of its gross domestic product and approximately 21% of all international tourism receipts in East Asia

Through the above statistics, it can be seen very clearly that Korea and China are two very strong competitors to Japan Although it recorded a much smaller number

of visitors than Japan, Korea accounted for a larger number, accounting for a higher

percentage of total international tourism revenue in East Asia Although China is behind Japan, it has incredible tourism development potential China has welcomed a huge number of tourists and earned more than 40 billion USD, nearly 4 times the revenue of Japan's tourism

1.2.6 Mission, Vision, Goals and Actions

1.2.6.1 Mission

The Japanese government has designated tourism as a pillar of its growth strategy and a key to regional revitalization In March 2016, at the "Tourism Vision Design Council for supporting the tomorrow of Japan," it set a target of 60 million foreign visitors by 2030 On the other hand, due to the impact of the novel coronavirus, inbound demand from all areas has decreased significantly There has also been a big drop in domestic tourism demand due to the impact of travel cancellations, reluctance to make bookings, and self-restraint on movement This has seriously affected not only the travel and accommodation industry, but also local transportation, restaurants, and goods sales Depending on the situation of the coronavirus and the recovery of travel demand, the government plans to prepare initiatives for a full-fledged inbound recovery while stimulating domestic travel demand, which is the driving force of tourism demand for the time being, with measures to prevent the spread of the infection

1.2.6.2 Vision

The Japan Tourism Agency was launched on October 1, 2008, carrying with it the mandate of “being a government agency unlike the usual, unfettered by traditional framework.” As the first agency to be established after the Central Government Reform of January 2001, we are also determined to create a new mindset and organizational culture befitting a new body The result is the "Vision of the Japan Tourism Agency."

This vision consists of two parts: namely, the philosophy and the code of conduct Of these, the five items of the code of conduct are designated as "The Five Rules of the Japan Tourism Agency." There are wallet-sized cards available to remind each and every member of the agency of these five rules as they carry out their duties Based on this vision and in accordance with the idea of "An Open Tourism Agency," the entire organization is committed to "building a country good to live in, good to visit," and achieving a true tourism nation