Tourism in Japan is flourishing—over 24 million people visited the country last year, representing a 20 percent jump over 2015. This remarkable increase is not uncom-mon, but rather another spike in a long series. Visitors to the country more than doubled between 2011 and 2014, and have doubled again since then. And growth shows no signs of slowing down. Just this past January, the country set a record for the highest number of visitors for that month in history, up 24 percent over January, 2016.

These fast rising trends are by no means a fluke. They are the results of a solid strategy in place as far back as 2008, when the govern-ment set the goal of increasing tourism to 20 million annual visi-tors by 2020. Having met that four years ahead of schedule, Japan now hopes to attract 40 million by that same year, and increase tourism-related revenue to $76 billion (up from last year’s $33 billion), and why not? Doubling figures seems to be very attainable in this tourism sector. Indeed, it would very much appear as if Japan is headed into the elite category of the world’s top tourist nations.

And this is the great surprise. Japan, a country that was closed off for many years, insular and inward looking, is overcoming ob-stacles that many other countries never have to face in growing their tourism industries. Suffering from the “Galapagos effect,” a tunnel of

ethnocentricity, Japan has been fa-mously exposure-shy and secluded. The world, for its part, came to believe the country was too far away, too poorly connected, too expensive, unwelcoming and indeci-pherable. This makes the incredible success Japan has achieved even more mind boggling. Japan is, in a nutshell, succeeding in overcoming its stereotypes.

“Japan is currently living in a very exciting time. For the first time in history, our country is truly trying to open itself to the world. Japan is known for its expertise in manufacturing, represented by globally recognized brands such as Toyota or Panasonic. Previously, tourism was still considered to be a sub-sector, with a marginal impact on the overall economy. However, Prime Minister Abe’s administration has made it a core pillar for economic growth, trans-forming Japan into a touristic des-tination,” says Ryoichi Matsuyama, president of the Japan National Tourism Organization (JNTO).

This is great luck for the rest of us, who have been denied the experience of the rich Japanese culture, its tremendous cuisine and stunning natural beauty for far too long. A hidden diamond, one boast-ing no less than 17 UNESCO World Heritage Sites, along with hundreds of Michelin-starred restaurants, four vibrant tourism seasons and a diversity of natural landscapes, has been put on view.

“From Japanese characters to traditional ceremonies, we have a great culture, filled with wonders that are yet to be discovered. This cultural richness only lacks a nar-rative, a voice to get its story out there,” says Mr. Matsuyama.

JNTO attributed last year’s record-breaking success to efforts since 2013 aimed at creating a more tour-ism friendly environment, including the expansion of duty-free items and relaxed visa requirements. The private sector also came on board, increasing English-language options both in the street and online, while lei-sure industry players morphed their roles into full-on travel companions. These strategies boosted Japan’s ranking in the World Economic Fo-rum’s Travel and Tourism Competi-tiveness Index to 9th, making it the most tourist-friendly country in Asia, up from 22nd in 2011.

Now, focusing on the next goals in time for the Tokyo 2020 Sum-mer Olympics, the government is unleashing a new wave of initiatives, including upgrades to airports and seaports, as well as improved access to national parks and cultural attrac-tions. Last year, Prime Minister Abe signed a $61 billion infrastructure package to improve connectivity throughout the country, and plans are also underway to improve digi-tal infrastructure through extending universal WiFi coverage and further improving multilingual information and services through ATMs, web-sites and other digital platforms.

Mr. Matsuyama says the $76 billion target in tourism revenue is the first time in history that the Japanese government has put a dollar figure on inbound tourism. To achieve that, there are three major strategies. The first is to enhance regional tourism and promote less well known attractions. “Secondly, we want to create a unified voice for the tourism sector to have more weight in the political and economic arena. The tourism industry in Japan has been marginalized for too long. For example, when compared to the construction industry, our sec-tor generates a similar amount of money, but that sector has a clear political force, a voice that tourism has not had,” he says.

“Thirdly, we want to create a foreigner-friendly environment. For example, we have pushed for the installation of WiFi connection around the country to allow all tourists to be connected. Setting up these goals is crucial to the success of our industry. Japanese people are like that, once there are common goals and targets implemented, we become willing to work relentlessly in order to achieve them. I am very optimistic for the future.”

Tackling stereotypes in the tourism sector

J APAN

Unveiling Japan

Ryoichi Matsuyama, President, Japan National Tourism Or-ganization (JNTO)

Japan is far more than Mount Fuji and Tokyo, but according to a 2016 McKinsey report, the vast majority of Japanese tourism at-tractions are relatively unknown to the world. The Great Buddha of Kamakura, the Todai temple of Nara, the Toshogu Shrine of Nikko, Ise-jingu Shrine, Shiretoko National Park—the list of attrac-tions in which awareness rated under 10 percent of those polled was too long.

Yet these cultural attractions have great appeal. Kamakura’s Great Buddha, a monumental out-door bronze statue reaching some 13 meters high, is the second larg-est Buddha in Japan, surpassed only by that at Todai. The Kumano Nachi Shrine, a few kilometres from the hot springs resort of Katsuura, on the lush southern tip of the Kii Peninsula, is part of a large complex of neighboring religious sites that exemplify the fusion of Buddhist and Shinto influences. Here, in the verdant surroundings, visitors can

see the tallest waterfalls in Japan. Ise-jingu in Mie Prefecture contains 125 shrines and is roughly the same size as Paris. More than 1,500 ritu-als are performed there yearly to pray for the Imperial family and the peace of the nation. The inner shrine at Ise, established more than 2,000 years ago, is considered Ja-pan’s most sacred shrine.

These are just a few examples of Japan’s immense, and mostly un-explored, offer. Aya Aso, President and CEO of Agora Hospitalities, says, “While Kimonos and Mount Fuji are well known symbols of the country, they do not depict Japan’s full cultural diversity. Tourists usu-ally visit Tokyo and Kyoto, and then leave. To further enhance our coun-try’s attractiveness, we must pro-mote our diversity to its fullness.”

Hiroshi Mizohata, Commission-er of the Japan Tourism Agency, agrees. “While Americans and Eu-ropeans are aware of the major at-tractions of Japan, they quite often do not have a complete picture of

the country. They are not aware of its diversity,” he says.

This lack of awareness also spills over into Japan’s recreational of-fer. Japan offers some of the best powder skiing in the world, for example, with an average of 10 to 18 meters of snow per season at most resorts, but it is a destination that flies under the radar of most international skiers. This is slowly beginning to change, says Shuhei Suzuki, CEO of Nippon Ski Resort Development Company, in Hakuba, a resort in the Japanese Alps near Nagano. “Hakuba has the second largest contingent of foreign skiers in Japan, but it has yet to reach its full potential. But year after year, its reputation as a destination with reliable deep powder snow and Japanese traditional culture is increasing,” he observes.

In similar fashion, many visi-tors overlook Japan’s wonderful parks, where true gems of Japa-nese culture can be found hidden away. The country’s oldest park, Asakusa Hanayashiki, in Tokyo’s lively Asakusa district, has been operating since 1853, when it opened as a flower park for the visit of the Commodore of the U.S. Navy, Matthew Calbraith Perry. To-day, it offers a full range of attrac-tions and eateries, along with shops boasting vintage souvenirs. It also has Ninja training and full kimono and tea ceremony experiences at more accessible prices than many of the larger parks.

“Asakusa Hanayashiki is not just an amusement park; we are not fancy like Disney Land and we do not aim to be so. What we instead want to emphasize to our visitors is the culture and the long his-tory of the park,” says park man-ager Hirota Akihito, adding that Asakusa Hanayashiki collaborates with the Asakusa district through carnivals and festivals to create a multiplier effect.

“Starting in December 2016, we established a new joint activity where we offer Japanese Hagoita classes. Hosting these events col-laboratively and offering free en-trance to the tourists in the area are some of the efforts we are fo-cusing on. We are also constructing a multi-purpose hall to be opened in June, 2018, which will offer more

cultural events such as the Geisha show and the Tea Ceremony.”

Edo Wonderland in Nikko is another park with an authentic cultural offer. Based around the Edo Era (1603-1868), the 50-acre park is a replica of a small Edo-style town, replete with forested areas, shops, small eateries, theaters, museums and exhibitions, with ninja staging mock fights and gei-sha parading through the streets. Ryoichi Yuki, park CEO and presi-dent, says, “People come here to understand the Edo Period, and the history of Japan. Tokyo was Edo so to know our culture, one must get to know the Edo Era, and it has been maintained here in a very authentic way.”

Mr. Yuki says he hopes to attract more American visitors in the fu-ture. “Cultural exchange between countries is like an international marriage. It is about exchanging val-ues and understanding different cul-tures and how we can comprehend each other. As a Japanese person, I want to support the way that Japan is opening to the world. I want to be part of the transformation.”

A land of surprises

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Discovering the hidden attractions in Japan, from ancient shrines to amusement parks

“Cultural exchange between countries is like an international marriage. It is about exchanging values and understanding different cultures”

Ryoichi Yuki, President and CEO, Edo Wonderland

A nation known for its beautiful traditions and authentic crafts-manship, Japan’s image has re-mained rather unchanged on a global platform as economic challenges shape the nation’s culture and outward appear-ances. “From the north to the south of Japan, tourists have the possibility to enjoy a mul-titude of varying landscapes and changing weather. From the beach to the mountains, you can find everything in Ja-pan,” says Commissioner Hiroshi Mizohata of the Japan Tourism Agency (JTA).

“We have seen a 20-percent-plus yearly increase in tourism, followed by a clear growth pat-tern in expenditure and con-sumption,” says Mr. Mizohata. At present, almost 80 percent of visitors to the country are from Asia, but these guests “spend less money and stay a shorter amount of time” so, as

the tourism industry grows, a focus to “accommodate our country’s services to attract new visitors, such as Europeans and Americans” is crucial to increas-ing spending by guests, he says.

Currently, foreign guests can use credit and bank cards issued overseas to make cash advances in yen at over 48,000 of the 190,000 ATMs Japan has to offer. By the time the Olympics come to pass, that number is ex-pected to rise to 80,000. Things have begun to change as Aben-omics continues to make tour-ism a focal point in boosting the economy. In 2016, the number of overseas visitors rose 21.8 per-cent to 24.04 million, showing that Japan is well on its way to reaching the desired 40 million tourists by 2020. In the past, travel to rural destinations has been a struggle, but the Prime Minister’s signing of a $61 billion project to connect better infra-

structure is opening up more op-portunities to visit unique places.

Authorities like the JTA know that it is much easier to travel in Japan than tourists perceive. Mr. Mizohata says, “We are currently enhancing our digital infrastructure in or-der to make our country more visitor-friendly.” As part of the effort, “we will facilitate free Wi-Fi connections nationwide while enhancing multi-lingual installments,” he says. Public and private sector companies are both engaged in the effort to combat the stereotypes of dif-ficult travel throughout Japan.

NAVITIME has created a multimodal travel app that can help tourists navigate the some-times-complex transportation routes of Japan with enhanced GPS in four languages. CEO Dr. Keisuke Onishi describes the ser-vice like this: “For example, our system will tell the user by au-

dio which exact exit to use when leaving the metro, and instead of simply suggesting where to turn, it will also inform about what different facilities are sur-rounding. This helps the user to easily navigate and find the clos-est police station, coffee shop, or post office.” Use of the app is encouraged by its convenient availability.

Dr. Onishi says, “Currently apps show around 50,000 free Wi-Fi spots across Japan. Most users download the app before they enter the plane to Japan, and since the Wi-Fi spot search is available even when you are offline, users can immediately search for Wi-Fi spots when they arrive and get connected.” With a focus on tourism and technol-ogy like this available, travelers have an easier time than ever before in finding where and how to get to diverse and interesting destinations in Japan.

Japan opens up to the worldImproving technology and infrastructure makes Japan more welcoming to visitors than ever before

Ask global citizens where they want to visit in Japan and you may be surprised to find that al-most all of them have the same answers: big cities. Though Ja-pan has many diverse places to experience, a whopping 48 percent of all tourist visits are in and around Tokyo, Osaka, and Kyoto. The prospects available in the major urban areas have caused a population exodus from the rural regions as Japa-nese residents flock to job op-portunities. Since 2014, Prime Minister Shinzo Abe has made “regional revitalization” a key component to revamping the economy.

Technologically progres-sive companies like travel app developer NAVITIME work to promote the lesser-known ar-eas of Japan. CEO Dr. Keisuke Onishi says, “In rural areas of Japan, most signs and informa-tion in the train stations or on roads are not multilingual, as they are in the larger cities. With our navigation app, we support tourists with the infor-mation needed in their own lan-guage while traveling through Japan.” Expanding on the idea of travel ease and encouraging visitors to take in smaller, local sites is part of the Abenomics effort that companies like the West Japan Railway Company (JR West) need to stimulate business.

President of JR West Tatsuo Kijima says, “It is necessary to promote the local towns and cities in Western Japan such as Kanazawa, which is fundamen-

tally different from the beaten tracks of Tokyo or Kyoto.” Many tourists may have the notion that getting to these rural ar-eas is difficult or expensive, but JR West offers a “Japan Rail Pass” that covers all regions. Mr. Kijima explains, “During one week, a visitor would be able to visit Kansai, Hiroshima, and Miyajima as a package.” Pack-ages that are marketed to Western tourists are becoming a more viable option to visitors like Americans and Europeans who tend to have a higher inter-est in traditional and historical Japanese culture. The focus has been on the large cities for so long that, like Dr. Onishi says, “Another point is that many municipalities are trying to at-tract foreign tourists, but they may not know what attraction they can offer that will be of interest to the tourist.” The Gifu region strives to conquer this challenge from both a business and touristic outlook.

Eager to show the potential of the most centrally located city in Japan, business lead-

ers like Mr. Takashi Tsuchiya of Ogaki Kyoritsu Bank (OKB) offer insight on the future de-velopment of the region. “Gifu has a preferable location at the geographical center of Japan, which is something we are very proud of. Gifu is also known as the “manufacturing Mecca” of Japan; we have an abundant water resource and the trans-portation services are very well developed. This region has a lot to offer foreign and local com-panies,” he says.

With the development of additional infrastructure and more promotion of the rural cities, there are still some con-cerns about tourist spending in the regional areas. Mr. Ichiro

Hamakawa of the credit card company JCB Co. is optimistic that conditions will continue to improve for travelers. He says, “As for the financial barriers, our main objective is to enable the use of all credit cards around the country.” The combination of all of these developments are expected to “facilitate the tourist influx in general” says Mr. Hamakawa. The beauty of tropical beaches in Okinawa or fresh snow in Hokkaido simply offers an enriching cultural experience unlike their larger counterparts. As Mr. Tsuchiya of OKB states, “All regions in Japan, not only ours, are wel-coming the reforms and looking forward to the results.”

Off the beaten trackReaching regional Japan brings unique experiences for tourists

“It is necessary to pro-mote the local towns and cities in Western Japan such as Kanazawa, which is fundamentally different from the beaten tracks of Tokyo or Kyoto”

Tatsuo Kijima, President, JR-West

“With our navigations app, we support tour-ists with the informa-tion needed in their own language while traveling through Ja-pan”

Dr. Keisuke Onishi, CEO, NAVITIME

“Gifu has a preferable location at the geographical center of Japan, which is something we are very proud of”

Takashi Tsuchiya, President,Ogaki Kyoritsu Bank

Proudly Sponsored By:

“As for the financial barriers, our main objective is to en-able the use of all credit cards around the country... to fa-cilitate the tourist influx in general”

Ichiro Hamakawa,President and Chief Executive Officer, JCB Co.

An outstanding safety, reliabil-ity and performance record has made Japan’s high-speed Shink-ansen rail network an interna-tional symbol of its innovation, precision and technological am-bition since it was established in 1964.

The network is operated by five Japan Railway Group compa-nies, one of which is West Japan Railway Group (JR-West Group). The JR-West railway network extends over a total distance of 5,007 kilometers, covering 18 prefectures in Western Honshu, Japan’s main island, and carrying 1.8 billion passengers per year.

“Our Sanyo Shinkansen line ranges from Shin-Osaka to Hakata, but we also have a direct connection with Tokaido (Tokyo to Osaka) and Kyushu (Hakata to Kagoshima) Shinkansen with the high-speed rail,” says President of JR-West, Mr. Tatsuo Kijima.

Like all of Japan’s railway com-panies, JR-West is integral to the country’s efforts to expand the tourism industry. Facing a declin-ing and aging population, Japan is banking on increasing tourist numbers to make up for falling local demand for goods and ser-vices, including rail services.

“Due to the demographic challenges of an ageing and declining population, I believe that the market for railway-based business will stagnate in the long term. Therefore, inbound tourists are indispens-able for our growth strategy,” adds Mr. Kijima.

Almost half of the millions of visitors that visit the country each year tend to limit their stay to Japan’s main island, Honshu, concentrating around the coun-try’s three most popular desti-nations, the cities of Tokyo, Kyoto and Osaka.

Boosting tourism in less vis-ited parts across the nation is seen as vital to stimulate region-al growth. JR-West therefore is not only carrying passengers in Western Honshu, but also plays an important role as a regional ambassador and promoter, opening up more of Japan’s less beaten track to visitors.

“It is necessary to promote the local towns and cities in Western Japan such as Kanazawa, which is fundamentally different from Tokyo or Kyoto. We want to es-tablish appealing tourist trains and an experience that allows the customer to travel around quickly. We would like to be a company that provides a total network that is useful for cus-tomers within the western area.

“For railway users, there is a pass called Japan Rail Pass that covers all the regions, but we also have the West Rail Pass that can

be utilized in the western areas. When visitors come to the region, I would like them to visit the Hokuriku, San’in, and Chugoku regions with our rail pass.

“The Kanazawa and Hokuriku regions have historically been popular with visitors due to their richness in nature and food. Most people used to go there by air-plane, but with the opening of the direct Shinkansen, we have seen a complete reverse situation with 80 percent now choosing Shinkansen over airplane.”

Rail firms look to boost regional tourismTrain operators key to Japan’s tourism goals

“We want to establish appealing tourist trains and an experience that allows the customer to travel around quickly”

Tatsuo Kijima,President, JR-West