JAPAN. Despite the global economic turmoil, the forthcoming Golden Week season will see a sharp year-on-year lift in Japanese travellers going abroad, Travel Journal International (TJI) Online* reported this week.
Citing a report from the country’s leading travel group JTB, TJI said that demand was being driven by the strong Yen and 2009’s lower fuel surcharges.
Major wholesalers such as JTB, H.I.S. and Kinki Nippon Agency (KNT) have all reported higher booking activities for the period from 25 April to 6 May, it said.
Golden Week is a string of national holidays that, when combined with weekends and days off from work, can allow for a holiday of 12 consecutive days. Historically it has been a critical period for travel retailers serving Japanese travellers.
But in recent years, TJI said, outbound travel demand has slackened due to higher costs and widespread consumer preference for alternative, cheaper dates.
JTB Corp, in its latest Golden Week Trends 2009 Report, said that traffic to overseas destinations will climb an estimated +10.13% year-on-year to 500,000, marking the first increase since 2006.
The findings are based on market trends, airline bookings, reservations at JTB’s 200 outlets nationwide and surveys polling some 1,200 customers purchasing travel for the period with at least one night away from home. The survey was conducted between 4 and 16 March.
The record number of travellers heading abroad during Golden Week was set at 564,000 in 2000, the year Japanese overseas travel reached an all-time high.
JTB said that Asian destinations will draw some +15.27% more visitors totalling 302,000. Of that figure, 98,000 will head to South Korea, up +32.43% from a year ago. Japanese tourism to South Korea – and shopping once there – has been buoyed in recent months by the Yen’s strength against the Korean Won.
Asia (excluding China) will accommodate some 60.4% (302,000) of all Golden Week travellers heading out during the period. Mainland China will help boost the number with 85,000, up +13.33%, followed by Hong Kong at 25,000 (ahead +8.70%), and Taiwan at 23,000 (up +9.52%).
YEN STRENGTH BOOSTS EUROPEAN TRAVEL
Europe also looks good. TJI noted: “Traffic to long-haul destinations in Europe will grow some +7.81% to 69,000, largely ignited by the lower fuel surcharges introduced for the period between April and June. Also, the Euro has shown a +17.8% depreciation in value compared to a year ago as of March 31, 2009, making Europe more attractive. The Japanese Yen also gained some +29.2% against the British pound.”
Major long-haul markets in North America will be unchanged from a year ago at 104,000, accounting for 20.8% of Golden Week travellers. Positively for DFS Group, Hawaii will welcome some +8.57% more visitors while Canada will remain unchanged with 5,000 arrivals.
The US mainland can expect -3.03% fewer visitors and Guam-Saipan will see a -6.45% drop to 29,000. Oceania will remain unchanged at 18,000 travellers but Australia will see a +7.69% rise to 14,000 visitors. One reason is the -26.4% depreciation of the Australia Dollar against the Yen, TJI said.
H.I.S. ANTICIPATES +26% RISE IN TRAVEL
In related news H.I.S. said that reservations during the Golden Week period are up some +26% year-on-year, with Seoul, South Korea as the most popular destination. It was followed by Honolulu, second; Guam, third; Bangkok, fourth; and Bali, fifth, TJI reported.
Destinations generating the highest growth levels compared to a year ago are:
1. South Korea, +88%
2. China, +67%
3. Malaysia, +64%
4- Palau, +58%
5- UK, +55%
H.I.S. said that strong demand for Shanghai helped push China to second position.
While Asian and short-haul destinations dominated the top 10, long-haul cities ranked in the top 20: 12th, Los Angeles; 13th, London; 15th, New York City; 17th, Rome; and 19th, Las Vegas, thanks to the double-digit decreases in fuel surcharges, TJI said.
*Editor’s note: The Moodie Report works closely with TJI Online, the largest English-language travel trade news source in Japan. Week in, week out, it provides timely and sharp analysis of the all-important Japanese travel market – international and domestic. To subscribe please visit https://tji.tjnet.co.jp. It comes with our highest recommendation.
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