Abenomics: What You Need To Know To win And Lead In Japan

Shinzo Abe & Japan baby boomers impacts on tourism in Japan

Who are the Baby boomers?

Baby boomers are people born during the demographic Post–World War II baby boom between the years 1946 and 1964 according to Wikipedia.

In Japanese context , baby boomers generally refers to those born between 1947 and 1949. In other words people born in the first boom

Japan population by Age and sex

Will tourism become popular in Japan in the near future?

Japan demographic trends & baby boomers

psychographics

Japan macroeconomic policy

Baby boomers incomeAnd wealth(13 trillion Yen)

Tourism revival policy(20 MM by 2020)

Japan monetary policy

More leisure timeAnd increase tourism

More leisiure time andIncrease tourism

As a result in many tourist From SEA and the Middle East

The tourism hasIncrease as a result

Almost ¼ 65 orolder

Baby boomers’Activities, interests

and opinionRelaxation of immigrationProliferation of Low carrier

The Japanese Yen has depreciated 20%

against major currencies

The Olympics 2020

Yes

Forward-looking analysis

1 2 3

Boomers retiring

New company specializing in tours for seniors

60 or older got 22% of financial asset

By 2010 65 or older 13.9 % of Pop

Before boomers retirement

2012 most boomers retired

2013 Abe’s policies

2014

Olympics prep.

Hosting the game will boost tourism

Proliferation of budget carriers

Planning to legalize casinos

Abe’s policy

Beginning of monetary policy

The Yen weakened

Boomers retired with 13T Yen of assets

Abe

Tourism jump started by 36%

Japan is “back campaign”

Japan won the bid to host Olympics

Baby boomers retirement and its impacts on Japan tourism

Fig. 2 Financial Assets, by Householder Age (2005)

18

16

(millions orye'!)_ _ _ _ _ _ _ _ _ _ _ _ _ _ - 17:0- - - - - - - -

- - ts.o - -

14

12

- - - - - - - - - - - - - -

I LS10 - - - - - - -6 4.2

20s 30s 40s 50s 60s70s and

1/5 of Pop is 65 Abe in power Start of 3 arrows Olympics preparation

Boom in tourism

Olympics 2020

Japan macroecon

omics policy

Baby boomers

retirement & wealth

Visa relaxation & yenWeakness to 20%

againstMajor currencies

Japan baby boomers asset

worth 13Trillion Yen & like traveling

Abe’s government is targeting 20 millions

tourists by 2020

In 2010 Japanese 65 or older was 13.9%That is 17,653,000

Japan outbound tourism (1000) 201218,490 201116,994 201016,637

11%

Japan inbound tourism (1000) 201412,560 201310,400 20127,647

63%

Cause and impacts analysis

Age -24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70-

Food 6.0 6.6 7.6 9.0 10.4 I L.I I0.8 10.6 10.0 9.2 8.8

Fumiture & housewares 6.0 9.2 8.0 8.7 8.8 10.4 10.3 11.6 9.7 9.5 7.8

Clothing & footwear 5.1 8.1 8.7 10.0 10.7 12.0 11.8 10.8 9.3 7.7 5.8

Medical care 5.5 8.9 7.9 8.3 8.4 9. 1 9.2 8.9 10.4 10.8 12.7

Housing 12.6 14.3 1 1.2 8.9 6.3 5.5 5.9 6.2 7.8 10.2 11.2

Transport, 6.9 9. 1 9.5 1 1.3 9.9 11.7 1 1.8 10.5 8.4 6.8 4. 1

Education 1.0 3.1 6.5 9.9 18.8 29.9 22.0 6.8 1.2 0.5 0.4

Reading & recreat ion 3.4 7.8 8. 1 I l.5 12. 1 11.9 9.7 9.7 9.5 8.9 7.4

Package tours 1.8 4.3 5.2 7.7 8.5 9.6 7.9 13.4 16.0 16.3 9.5Note: I . Figures show all households With an employed person (excludmg agriculture, forestry and fishenes).2. Sum of each row equals I OOo/oSource: Ministry of internal Affairs and Communicauons (2005)

Addressing the growing travel needs of Japanese baby boomers

Age -24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 70-

Food 6.0 6.6 7.6 9.0 10.4 I L.I I0.8 10.6 10.0 9.2 8.8

Fumiture & housewares 6.0 9.2 8.0 8.7 8.8 10.4 10.3 11.6 9.7 9.5 7.8

Clothing & footwear 5.1 8.1 8.7 10.0 10.7 12.0 11.8 10.8 9.3 7.7 5.8

Medical care 5.5 8.9 7.9 8.3 8.4 9. 1 9.2 8.9 10.4 10.8 12.7

Housing 12.6 14.3 1 1.2 8.9 6.3 5.5 5.9 6.2 7.8 10.2 11.2

Transport, 6.9 9. 1 9.5 1 1.3 9.9 11.7 1 1.8 10.5 8.4 6.8 4. 1

Education 1.0 3.1 6.5 9.9 18.8 29.9 22.0 6.8 1.2 0.5 0.4

Reading & recreat ion 3.4 7.8 8. 1 I l.5 12. 1 11.9 9.7 9.7 9.5 8.9 7.4

Package tours 1.8 4.3 5.2 7.7 8.5 9.6 7.9 13.4 16.0 16.3 9.5Note: I . Figures show all households With an employed person (excludmg agriculture, forestry and fishenes).2. Sum of each row equals I OOo/oSource: Ministry of internal Affairs and Communicauons (2005)

Fig. 8 Public- and Private-Sector Measures to Address Boomer Travel Needs

Organization Measures

Japan Travel BureauKinki Nippon Tourist Co., Ltd. Nippon Travel Agency Hokkaido East Japan Railway CompanyAll Nippon AirwaysAomori Prefecture Kagawa Prefecture Mivazak i Prefecture

New company specializing in tours for senior citizensTours focused on health themes Tours to hot springsTravel-program membership systemI nvestment in Pasona Group company to develop travel products Seminars/workshops, and "experience countryside living" opportunities Working with travel agencies to develop travel productsProjects to encourage people to move to Miyazaki countryside

Internal & inbound tourism growth

Japan internal policies

What type of data do you Need?

I need data from: Government sources like the

ministry of internal affair, trade organization, census bureau

Think tank like OECD, IMF, World Bank

Market research and management consultant like Euromonitor, Dealogic, Mckinsey, BCG and Bain

News channels like Bloomberg, the Wallstreet journal, Japan Times, Financial Times and the Economist

Qualitative & Quantitative data

Implication to my

research

To avoid the pitfalls of data bias, experience suggest:• Search from

authoritative sources

• Be sure of the credibility & integrity of the source

• Hence have good output to make sound decisions

Source of data & information Best Practices

Reference

Slide 2

• https://www.jetro.go.jp/en/reports/market/pdf/2006_18_u.pdf• http://www.mlit.go.jp/common/000991725.pdf• http://www.powderlife.com/blog/japanese-baby-boomers-come-to-the-rescue/• http://www.keepeek.com/Digital-Asset-Management/oecd/industry-and-services/te

ndances-et-politiques-du-tourisme-de-l-ocde-2014/japon_tour-2014-25-fr#page6

Slide and • https://uk.news.yahoo.com/abes-grand-plan-revive-japans-economic-might-113525

026--finance.html?.tsrc=lgwn#LIV7OG7• http://www.csmonitor.com/World/Asia-Pacific/2013/0523/Japan-s-weak-currency-m

eans-tourism• http://ajw.asahi.com/article/behind_news/social_affairs/AJ201401180044• http://www.jnto.go.jp/eng/• http://export.gov/japan/doingbusinessinjapan/traveltourism/index.asp

Slide 2

3 4

References