THE Department of Tourism (DOT) is targeting an influx of Japanese tourists this year, reaching some 800,000 visitors.
DOT Spokesman and Undersecretary for Tourism Development Planning Benito C. Bengzon Jr. made this bold prediction on the heels of Tuesday’s announcement by ANA Holdings Inc. of its purchase of a 9.5-percent stake in Filipino legacy carrier, Philippine Airlines (PAL). ANA HD, the parent firm of All Nippon Airways, will be acquiring the stake for $9.5 million.
Bengzon told the BusinessMirror: “The investment of All Nippon Airways in Philippine Airlines is a welcome development, as it bodes well for the tourism industry. We foresee an increase in arrivals, not only from Japan, but from other source markets, as such partnership will boost our connectivity.”
Japan is the fourth-largest source market of tourists for the Philippines, with arrivals last year rising by 8.15 percent to 631,801. This was slower, however, than the 9.14-percent growth in Japanese arrivals to 584,180 in 2017. The target for 2019 is nearly 27 percent higher than the last year’s figure.
Bengzon said the optimistic target for 2019 stems from the implementation of the DOT’s “more focused and strategic marketing strategy, especially targeting the Joshi Tabi, or the women’s travel market.” Also, he said, with the investment of ANA HD in PAL, “more local destinations will be more accessible to Japanese travelers.”
PAL currently operates 84 flights weekly on nine routes to Japan, and ANA operates 14 flights weekly on two routes to the Philippines. The two carriers have codeshare operations on Japan-Philippine routes and domestic routes within Japan and the Philippines, linking a total of 16 Japanese and 11 Philippine destinations, according to PAL in its news statement on Tuesday, following ANA’s announcement of its investment.
In a text message, Samie Lim, chairman of the Tourism Committee of the Philippine Chamber of Commerce and Industry, was enthusiastic about ANA’s investment in the Filipino flagcarrier, describing it as a “good partner.”
He added, “ANA is one of the best-run airlines now. It has
great service, food, and pricing. Good timing [of the investment] as Japan is
preparing to hold the Olympics and the World Fair soon. So heavy international
air traffic will flow to and from Japan. We will get not only the Japanese but
some of the
international travelers.”
He disclosed that Japan’s Kyushu province, which is the nearest to the Philippines, “is looking closely at us for two-way trade and tourists. They sent a delegation here last week to do initial research.”
But other local tourism stakeholders have long been warning of a stagnating Japanese market, although they believe safety and security concerns are no longer an issue like before. “Peace and order, I think is a nonissue,” said Rajah Tours President Jose C. Clemente III. “I think it’s more of us not being able to present something new to that market…. As you know, the Japanese want something to anchor on to promote destinations.”
This was echoed by Arthur Lopez, president of the Philippine Hotel Owners Association, citing former Tourism Undersecretary Daniel Corpuz’s view during the recent consultation meeting of the agency with the private sector. “[He] did mention that one of the possible reasons for the decline or stagnant figures with Japanese and Korean visitors could be the lack of product development or new packages to offer to them.”
He added, “these markets have matured, and we need to offer something different. It may also have something to do with their internal economy.”
The DOT has been pushing its marketing in Japan, such that Tourism Secretary Bernadette Romulo Puyat even visited the country twice last year, trying to convince more Japanese to visit the Philippines. The agency has especially targeted the Joshi Tabi, and tapped popular female celebrities as Philippine Tourism Fun Ambassadors, as “our arrivals from Japan are still largely male,” Romulo Puyat said.
(See, “PHL seeks to attract more Japan women travelers,” in the BusinessMirror, July 2, 2018.)
In a viber exchange, Tourism Attaché to Japan Verna C. Buensuceso said the DOT will sustain the Joshi Tabi campaign this year. Also, “we are focusing on more consumer awareness and building activities in the market to drive demand further.
We are also strengthening our presence in online platforms, since the younger set of travelers are more tech-savvy and are able to make bookings through online travel agents and other booking platforms.”
While last year’s growth in Japanese tourists was just 8.15 percent, Buensuceso averred that this was a higher growth rate than the 7.2- percent average in the previous five years. She added, “we do see a bigger diversity and mix of Japanese travelers to the Philippines,” although she acknowledged that they are still waiting for detailed statistics for 2018.