Economic Impact of Inbound Tourism on Regional Destinations of

Economic Impact of Inbound Tourism
on Regional Destinations of Japan
Takeshi Kurihara
Institute for Transport Policy Studies
Research background and objective
• Japanese domestic travel market will decline
• Inbound tourism demand has been increasing
– Economic impact on the regional destination?
– Is Inbound tourism beneficial or not?
• Evaluate the economic impact on the regional
destinations quantitatively
– Inbound tourism spending survey
– Effective inbound tourism policy for the regions
2
Research question
Is inbound tourism important compared to the
domestic tourism?
What is the characteristics of inbound tourism
spending behavior in the regional destination
compared to that in the big cities?
How can we measure economic impact of
inbound tourism on the regional destination?
What is the effective inbound tourism policy for
the regional destination?
3
guest both
host
Positive impact of inbound tourism
Economic
increase income,
tax revenue
creating job
Socio-cultural
improve destination image
proud of their region
conservation of cultural resources
mutual understanding
(cultural fusion, passport to peace)
understanding of cultural resources
destination attachment
4
Number of oversea visitors stayed (2013) 5
Regi Takayama
onal Fuji
kawaguchiko
Big Sapporo
city Kyoto
No. oversea /pop
visitors
(a/pop)
stayed (a)
149,996
1.62
oversea
share
(a/total no.)
0.153
96,524
3.79
0.157
708,264
789,945
0.370
0.536
0.121
0.144
Data: JTA (2013), Population census (2010)
• Small numbers compared to the big cities
• Inbound tourism impact on some regional destinations
Travel experience and destination
Destination
No.
Visitors
visits to
Within
from
Hokkaido
Kyushu
Japan Golden route
1st time
45%
19%
15%
Taiwan rd
3 time
39%
20%
17%
1st time
70%
0.4%
0.4%
Thailand rd
3 time
49%
14%
16%
Golden route: Visitors to Tokyo area, Mt. Fuji, Nagoya, Kyoto, Osaka
Data: JTA (2012)
• Popular destinations for 1st time visitors
• Repeat visitors travel to some other destinations
6
Inbound tourism spending in Japan
7
Spending/region (cumulative %, 2010)
Japan
(%)
Korea
80
Taiwan
China
60
40
20
Chubu(incl. Nagoya)
Kinki(incl. Osaka)
S E Asia
N America
Kanto(incl. Tokyo)
0
• Most spending goes to the metropolitan area
Data: JTA
Necessities for the spending survey
• Consumption trend survey for foreigners visiting
Japan
– Japan Tourism Agency
– Data limitation on the regional destinations
Needs their own survey
Know-how?
8
Points to the survey
• Provide a finding to the regional destinations
Aims
Accurate spending
amount
Points
1. Survey area
2. Sample size
3. Survey sheets
Low cost
4. Place
5. Distribute & receive
Variety of samples
6. Interviewer
9
Survey area
×
Yufu Beppu
×
×
Aso Kurokawa
×
Kumamoto
×
Fukuoka
×
Nagasaki
×
×
Miyazaki
Kagoshima
(人)
1
10
Benefit for collecting data
1 Understand the travel spending behavior
Information for inbound tourism marketing
2 Input for estimating the economic impact
Cost benefit analysis
Who is the beneficiary of inbound tourism?
→discussion on cost burden
11
Survey outline
12
Popular destinations in Japan
Takayama Apr 2013
Yufu, Aso, Ibusuki
Oct 2013 to
Feb 2014
Fuji kawaguchiko
Oct 2012
0
400km
13
Spending items
Accommodation Eating & drinking
Transport
(exclude JR pass, etc.)
Amusement service
Shopping
Survey Result
No.
No.
distribu respon
tion (a) dents
Yufu
593
90
Aso
620
91
Ibusuki
600
58
Fuji
258
160
Takayama
377
210
Valid
Return
samples
rate
(b)
(b/a)
76
13%
87
14%
43
7%
156
60%
198
53%
14
Visitors’ country/region
South East Asia
Yufu
North East Asia
Europe
Aso
Ibusuki
Fuji
Takayama
N. America
Australia
0
20
40
60
80
(%)
• Small number of visitors from North East Asia at Aso,
Fuji and Takayama.
15
16
Length of stay
Yufu
Aso
Day trip
1 night
2 nights
3+
Ibusuki
Fuji
Takayama
0
20
40
60
80
(%)
• Yufu, Fuji: close to the major destination(Beppu, Shinjuku)
Travel spending in Takayama
One day Eat & drink
Japanese
17
Shopping
Oversea
Transport Amusement
Overnight
Japanese
Other
Accommodation
Oversea
0
5
10
15
20
(1,000yen/pop)
Japanese data: Takayama city tourism statistics (2012)
• Oversea visitors’ travel expense
– Total amount exceeds Japanese visitor for overnight visitor
– Spending for shopping is higher for both one day and
overnight
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Travel spending in Takayama
Transport*
Shopping**
Asia
(n=20)
¥21,840
N. America
¥22,615
(n=24)
Europe
**
*
95% Sig.
** 99%
¥27,650
(n=67)
Australia
¥33,958
(n=39)
0
**
1
2
3 (10,000 yen/pop)
• Travel spending of visitors from Europe and Australia is
higher than visitors from Asia
• By spending items: Transport→Asia, Shopping→Australia
Travel spending (one night visitor)
Yufu
Accommodation
Transport
19
Shopping
Aso
Ibusuki*
Amusement service
Fuji
Takayama
Eat & drink
0
5
10
15
20 (1,000yen/po
Travel spending and Length of stay
Takayama
Fuji
Aso Yufu
● 99% significance level
night(s) a b c d e
0-1 - ● × ● ● ○ 95% significance level
× no significance
1-2 - - - - a) Accommodation
0-1
- - - - b) Eating & Drinking
1-2 ○ ● ● × ○ c) Transportation
0-1 - × × × × d) Amusement Service
1-2 ○ × × × × e) Shopping
2-3+ - - - - 0-1 - ● × ● ×
1-2 ● × × ○ ×
2-3+ × × × × ×
• Travel spending of each regional destination has its
saturating point
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Conclusion
• Propose the inbound tourism spending survey in
regional destinations
• Characteristics of inbound tourism spending in
the region
– Value for money; regional specialty that reflects their
own history or story
– Saturation of spending amount⇔even length of stay
extend, spending increase?
– Visitors from Asia spend more? like Tokyo?
21
Policy implication
Monitoring the spending trend in the regions
themselves
To increase the number of visitor is better than
extend the length of stay in some regions
Quality and variety of local food, amusement
service, products(souvenirs) for enhancing the
economic impact
22