The current market situation and exit of COVID-19 (3)
Social situation
Japanese society is gradually coming back to normal situation now. The state emergency had lifted already on 25ht of May and restrictions for businesses and the event were eased. The government on last Friday withdrew its request that people in Tokyo and the neighboring prefectures of Saitama, Chiba, and Kanagawa, as well as Hokkaido, refrain from crossing prefectural borders.
People started to travel again Saturday and there were more people emerged in popular sight seeing spots elsewhere in Japan over the weekend than same period last year. Long-distance passengers started returning to railway stations and airports while a number of entertainment venues across the country reopened. Restaurants, bars and other food related facilities, that were requested shorten opening hours, start to operate almost as usual. Professional sports such as baseball, football, Golf have been allowed to resume the games – but without spectators.
However, concerns regarding the epidemic still remain among some people and they avoid to approach crowded places including packed trains, fitness clubs and restaurants. Also second wave of infection is widely predicted by medical specialists in coming autumn and winter unless effective preparation efforts have been done by officials.
On the other hand, pandemic changes Japanese lifestyle especially in business. Remote work without office is becoming new normal in some companies, which means people won’t have to live in the big cities. At least they don’t have to commute every day taking risk being in crowded trains, subways.
Travel Trade
Many travel companies closed their offices already in the end of April, but finally they reopened them and started operations slowly. Due to almost non-existent of inbound tourists and our bound travelers, many are shifting to domestic traveling promotion especially toward customer’s from nearby areas. Even travel agencies only sold overseas traveling start to sell domestic destinations. I found out the first package tour advertisement on news paper last Saturday since pandemic started in March, all products were bus tours to close destinations or overnight packages at hot spring area close by.
On the other hand, the situation of overseas traveling is not clear, yet. The negotiation for opening the boarder for business travelers has just started with Vietnam, Thailand, New Zealand and Australia. Most probably charter flights will be the first step for their transportation. It is widely believed overseas traveling will be recovered in the order of close destination to long haul destination such as Europe. As the result, Japanese travel trade couldn’t develop the overseas products for summer and autumn even winter.
Good news is, even in this situation, they try to prepare next recovering stage by getting destination knowhow. Online seminar is extremely popular regardless by JATA, national tourist organizations or tour operators. There are several webinars everyday organized with few hundreds audiences. Online sales function will be new normal even after recovery. We can reach out the target audience anywhere in Japan without traveling.
Interesting surveys
There are several surveys took my attention on the Japanese travelers. I picked up some and summarize the main points as follows:
1, JTB Consumer attitude survey （ 28 May only in Japanese ）
This survey was made at the worst timing in the end of April, so their attitude already might been changed, but for your information.
- 5% recognize lower performance of the companies, 31.2% expect reduction of salary, 33.3% save daily expenses
- The desirable things after restriction of going out. Domestic traveling (40.9%), Dining out (40.5%), See friends (39.1%), Shopping (27.6%), Overseas traveling (9.2%)
- When they would like to travel abroad after all restrictions lifted and boarder opened ? 3.3% immediately, 20.1% after a while, 48.1% don’t want to travel sometimes, 8.1% never travel, 20.4% no answer
- 15 % of female under 29 years old has higher interest for overseas traveling
2, Diamond-Big consumer survey ( 9 June only in Jaoanese)
Diamond-Big Co.,Ltd. is publication company issuing almost-bible guide book for Japanese travelers named “Globe Trotter Guide Book (Chikyu-no-arukikata).
This survey was made between 24 April and 8 of May online. Most of answerers were traveling fan, so the result is quite different from JTB’s.
- 8% would like travel abroad, 32% would like to travel domestically after recovery. Timing is upon border re-opening without quarantine.
- 80% of them are collecting travel information during lock down period through in the order of Website, Guidebooks, TV program and Instagram. They would like to get precise and detailed destination information, especially by authorities.
- They are concerned if there is any discrimination for Asian people in the destinations
3, JD Power Japan Tourism attitude and Corona Virus survey (22 June Only in Japanese)
This survey was made between 5 and 8 of June on 1909 people who had overnight traveling in last one year. This is quite fresh survey.
- 58% plan to travel for both leisure and business in coming 6 months, but 68% of those who won’t travel in coming 6 moths, is worried about infection and 52% has negative view on border re-opening
- The desirable travel style. 50% is close destination by car, 30% is domestic traveling with flight, overseas traveling with flight was 17%
- People in 20’s and 30’s indicated high interests in Workation