Japan continues to be a complex and challenging travel market with a new report released today confirming the different issues which have affected Japanese tourists and travel to Australia since 2000.

The report, Japan – Changing Trends in Travel to Australia, published by Tourism Research Australia, looks at the variety of causes behind the drop in the number of Japanese visitors between 2000 and 2007.

Tourism Australia Executive Chairman, Rick Allert said the report made an important contribution to better understanding the complexities of the Japan travel market which has undergone further changes since 2007 and the timeframe covered by the report.

"These insights are extremely valuable in helping the Australian tourism industry adjust to the changes in the Japanese market and plan for the future," Mr Allert said.

"Japan will continue to be an important tourism market for Australia with more than 457,000 visitors from Japan arriving during 2008.

"However, what we also know is that there have been some further significant changes to the Japan travel market that have required Australia to adapt its marketing approach," Mr Allert said.

The report highlights that concerns about security (such as the September 11 terrorist attacks and the SARS epidemic in 2003) have had a significant impact on attitudes towards international travel by Japanese.

The report also shows that social, economic and demographic changes have impacted the number of Japanese visitors to Australia, including the decline in leisure travel by the 20-29 year old age group which is the most significant age group of the Japanese market for Australian tourism. 

This age group accounted for 30 per cent of Japanese visitors to Australia in 2000 and dropped to 24 per cent of visitors by 2007. They recorded the highest departure rates of any age group in Japan during the 1980s and early 1990s.

Mr Allert noted that the 20-29 year old age group, which accounted for 23 per cent of all departures of female travellers in 2008, was still significant for Australian tourism. With changes in aviation and the entry of Jetstar to the market new opportunities to target the young female market have re-emerged for Australian tourism.

"Along with other destinations, Australia now faces much greater competition for Japanese visitors from short-haul markets such as China, which saw annual increases of 10 per cent during the 2000 to 2007 period," Mr Allert said. "This reflected growth in both business and leisure travel between Japan and China."

"According to the report, travel to Australia has also been influenced by affordability and aviation capacity, with the substantial reduction in seat capacity especially over the past two years also contributing to the decline in Australia's market share."

Mr Allert said while there have been major changes in the Japanese market, the report also highlighted opportunities for Australian tourism operators into the future.

"Even with economic recovery, we are not likely to return to the levels of the mid-1990s when over 800,000 Japanese visited Australia each year," Mr Allert said.

"Still, the Japanese market will continue to be very important for Australia with more than 457,000 visitors during 2008.

"Future longer term opportunities include increasing the number of return visits; increasing the length of stay or spending from existing visitors; and, appealing to the growing section of the Japanese population aged between 40 and 60  who still have a strong desire for overseas travel."

Mr Allert said Tourism Australia was continuing to vigorously market Australia in Japan through its activities to target the trade and consumers.

"During the coming year Tourism Australia's priority will be targeting younger travellers in the Japan market, with secondary targets being the school excursion and Jukenen older female segments.

"This activity will be supported by a direct push on retail visibility and capability to convert interest in Australia to actual visits by Japanese travellers," Mr Allert said.

Follow the link below to read the full report in a new window:

www.tra.australia.com/content/documents/Japan_Exec_Sum_FINAL.pdf