Some financial institutions and other businesses in Japan are endeavouring to attract visitors to the country's regions and rural areas as the torism sector powers up to be a key plank in the country's economy.
"Japan's tourism industry is on the verge of becoming a major economic engine for the country, the management consulting firmMcKinsey says in its report titled The future of Japan’s tourism: Path for sustainable growth towards 2020.
In 2020, Japan will host the Olympic and Paralympic Games - a global platform for its people, culture, and landmarks.
Recently, tourism has been positioned as an engine to solve social challenges in Japan and support economic growth. The McKinsey report describes how Japan has the potential to more than double its annual GDP growth, to 3 per cent, by increasing productivity.
"This insight is also applicable to tourism, and this report investigates the challenges and potential impact of several initiatives aimed at addressing obstacles to realising its inbound tourism goals," it says.
And financial entities are moving to push the sector outside of the major mainland conurbations. On two tours in November, organised by the Tokyo-based payment card issuer JCB in collaboration with The Kagoshima Bank and the Kyushu Financial Group's Higo Bank, two groups of Taiwanese JCB cardholders, of about 30 members each, came on five-day tours to Kyushu, the southernmost of Japan's three biggest islands.
One group went to Kagoshima Prefecture, the other to Kumamoto Prefecture. Both The Kagoshima Bank and the Kyushu Financial Group are based in Kagoshima City, the capital of Kagoshima Prefecture. Like the United States with its 50 states, Japan is divided into 47 prefectures. The capital, Tokyo, is itself not a city but a prefecture.
JCB has around 24 million overseas cardholders, business promotion department assistant vice president Takeshi Hamabe, tells The National. "We believe that knowledge of Japan will increase and tourists will be able to enjoy their stay more by experiencing nature and culture specific to rural areas, instead of going to big cities like Tokyo and Osaka," Mr Hamabe says.
Insurance companies are also getting in on the act. Tokyo Marine & Nichido Fire Insurance set up a 24-hour call centre in July last year to support foreign tourists in the event of sickness or other difficulties, as part of its services for policyholder companies.
Besides Japanese, the company offers support in Chinese, English, French, Indonesian, Korean, Portuguese, Russian, Thai and Vietnamese, the company corporate communications group deputy manager Daiki Fujimaki tells The National.
Meanwhile, the Japanese government is also setting up policies to promote tourism to regional areas.
The ministry of land, infrastructure, transport and tourism's Japan Tourism Agency is setting up regional tourism routes and is providing assistance for improving local accomodation facilities, the Japan National Tourist Organisation (JNTO), an "independent administrative institution" of the government of Japan which promotes travel within the country, tells The National.
While accommodation is difficult to find in big-city areas such as Tokyo, Osaka and Kyoto, there is much lower occupancy rate in regional areas. "There are many little-known charms in the regional areas, so we will try to attract tourists there and strive to win repeat visitors," the JNTO says.
Although there are many tourists from Europe and the US who come to Japan for the first time, the numbers of repeat visitors from East Asian countries are increasing, and they are much interested in going to regional areas, the JNTO says.
Compiled from Japan Ministry of Finance data, JNTO figures show a record 24,038,700 tourists came to Japan last year, a 21.8 per cent increase from 2015's 19,737,409 visitors. The government aims to up that figure to 40 million by 2020, when the Olympic Games will be held there, and 60 million by 2030.
JTB Corporation, Japan's biggest travel agency and one of the biggest in the world, promotes tourism to regional areas with the idea that it will lead to their revitalisation, public relations and brand strategy official Hisato Okabe, tells The National. The countries targeted for attracting tourists vary according to the area to be visited, Mr Okabe says.
In Japan as a whole, JTB's promotions focus on attracting people from Europe, the US and Australia, Mr Okabe says, but it is widening its offering. "We started this fiscal year a new bus business targeting customers in the Spanish-speaking countries of South America, and are developing for them five touristic routes to regional areas," he adds.
Tokyo-based Geelee Media Group offers tourism information online, targeting tourists from Taiwan and Hong Kong, many of whom are repeat visitors to Japan. The company offers insights about regional areas in Japan, penned by about 30 writers from Taiwan and Hong Kong who live in Japan.
Of all the tourists who visited Japan in 2016, 6.1 million, about 25 per cent, came from Hong Kong and Taiwan. About 200,000 more came from mainland China, but that is only 0.5 per cent of the total population of that country, the Geelee public relations official Saeko Furujo tells The National.
Conversely, the number of visitors from Hong Kong and Taiwan to Japan last year made up 20 per cent of the 30.7 million of those two countries' combined population, Ms Furujo says.
Moreover, data shows that 80 per cent of people from Taiwan and Hong Kong visit Japan more than twice, and 20 per cent visit Japan more than 10 times. "In other words, people from Taiwan and Hong Kong are those visiting Japan the most in the world," Ms Furujo says.
The Japanese are not particularly good at local authority collaboration, but to increase the attractiveness of a given region, it is important to involve not only local tourist officials but also local agriculture, forestry and fisheries officials, traditional craftspeople, researchers, shopping streets, etc, the Toray Corporate Business Research chief analyst Tomomi Nagai tells The National.
"It is important not to leave things up to the government but to send information directly from localities to tourists thinking about travelling to Japan," Ms Nagai says.
Other necessary initiatives are on the digital front, creating easy-to-understand homepages in foreign languages, credit settlement for accommodation facilities and tourist facilities admission tickets, for example, Ms Nagai says. She points out the websites of tourism bureaus of France and the UK, from which tickets can be purchased from their Japanese pages.
"We need such initiatives in Japan also," Ms Nagai says.
And along with the expansion of promotional efforts, it will be necessary to develop a high-quality reception environment, Mitsufumi Tanaka, the tourist strategy group general manager at Mitsubishi UFJ Research & Consulting, tells The National. That means, "a Japan where foreigners can be easily understood, a Japan with high hospitality," Mr Tanaka says.
THE DEALS
Hamilton $60m x 2 = $120m
Vettel $45m x 2 = $90m
Ricciardo $35m x 2 = $70m
Verstappen $55m x 3 = $165m
Leclerc $20m x 2 = $40m
TOTAL $485m
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
%3Cp%3EMATA%0D%3Cbr%3EArtist%3A%20M.I.A%0D%3Cbr%3ELabel%3A%20Island%0D%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Results
5pm: Handicap (PA) Dh80,000 (Turf) 1,600m; Winner: Nadhra, Fabrice Veron (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,400m; Winner: AF Dars, Tadhg O’Shea, Ernst Oertel
6pm: Handicap (PA) Dh80,000 (T) 1,400m; Winner: AF Musannef, Tadhg O’Shea, Ernst Oertel
6.30pm: Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Taghzel, Malin Holmberg, Ernst Oertel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 2,200m; Winner: M’Y Yaromoon, Khalifa Al Neyadi, Jesus Rosales
7.30pm: Handicap (TB) Dh100,000 (PA) 1,400m; Winner: Hakeem, Jim Crowley, Ali Rashid Al Raihe
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The view from The National
The Details
Article 15
Produced by: Carnival Cinemas, Zee Studios
Directed by: Anubhav Sinha
Starring: Ayushmann Khurrana, Kumud Mishra, Manoj Pahwa, Sayani Gupta, Zeeshan Ayyub
Our rating: 4/5
