BY JULIAN RYALL
Japan Correspondent
TOKYO — After several challenging years for the travel industry in the wake of the global coronavirus pandemic, there was greater optimism among exhibitors from Guam and the Northern Marianas Islands at this year’s Tourism Expo Japan.
Speaking to the Journal at the four-day event at the Tokyo Big Sight exhibition center from Sept. 26, representatives of companies and government tourism agencies agreed that there was a more positive feel about the show than in the last three years — although most also admitted that there are still challenges that need to be overcome if the islands want to return to the peak years of arrivals from Japan.
And for the past year, the feeble yen has been the single biggest factor dragging on outbound Japanese travel, particularly to dollar destinations. Industry insiders point out that every single U.S/ destination is experiencing a similarly slow recovery in Japanese arrivals, with the notable exception of Los Angeles, which is benefitting from the remarkable performances of LA Dodgers star Shohei Ohtani.
“Guam is consistently in the top five places that Japanese people want to fly to, but with the exchange rate where it is, that makes actually visiting very difficult,” said Nadine Leon Guerrero, director of global marketing for the Guam Visitors Bureau.
The number of people visiting the large Guam booth at the expo was testament to the “desire” of Japanese to visit, she said, but conditions beyond the control of anyone in the travel industry are making that extremely difficult at present.
Still, with the pandemic firmly in the rearview mirror, there are grounds for optimism.
Some 604,917 Japanese visited Guam in the Oct. 1 to Aug. 31 period in 2019. That figure inevitably plummeted for the next three years as Japan imposed some of the most stringent quarantine requirements in the world, although the recovery is visible in the 2024 figures.
“Our forecast for 2024 was 199,000 arrivals from Japan and we are very confident that we will surpass that goal,” Leon Guerrero said, suggesting that the final figure will be around 210,000 arrivals.
GVB has launched a series of value-added campaigns in recent months and “got creative” as it appeals to new customers and repeat visitors to Guam, she said. That includes the Go Go Guam and Hafa Adai campaigns, as well as working closely with airline partners United Airlines and Japan Airlines.
With JAL due to start a daily service in October and United securing a prized slot at Tokyo’s Haneda Airport in May, there is optimism that improved access will translate into more Japanese opting to fly to Guam from the latter part of the year.
“When things stabilize then people will start to travel in large numbers again and what we are seeing is not systemic and not the fault of Guam, it’s a blip from which we will recover,” Leon Guerrero said.
Tomoyuki Goto, vice president of sales and marketing for Baldyga Group International in Japan echoed that optimism and said his company has used the less-busy last three years to completely revamp existing products and services and to develop new attractions.
“At present, we are getting about 30% of our previous Japanese guests so we shifted to also target South Korean visitors, the U.S. military stationed on the island and locals,” he said. “But while we were closed down, we used the time to develop a new nightclub and restaurant and to develop new tours so there would be attractions as soon as our customers were able to return.”
In business since 1990, Goto admitted the pandemic was the “most serious” crisis that the organization faced and that the recovery in the Japanese market has not been as rapid as they had initially hoped, but that the industry’s foundations are solid.
“I’m always optimistic,” he said. “Guam has huge potential for many reasons, but primarily because we are so close to Japan and easy to get to. The weak yen is a problem, of course, but it is an ever bigger problem for Europe or other long-haul destinations and we believe that because Guam is so near that our market will bounce back before those markets.”
William Nault, president and CEO of Tamuning-based land operator Nautech; said he sensed that the Japan market was recovering until March of this year, when the “exchange rate problem suddenly made it harder for Japanese people to travel.”
Nault said he anticipates that October will again be “weak” for the industry, primarily because it is traditionally the off-season for Japan.
“It is frustrating because it is one thing after another,” he said. “The pandemic and now the yen problem. It is frustrating because we do not have an infrastructure problem, we have the flights, and everything is in place.”
Nevertheless, he remains hopeful about the future.
“Guam is a destination that really matches with Japanese travelers,” Nault said. “We are a 365-day-a-year destination, it’s a short flight and tourists can be on one of our beaches on the same day they leave Japan.”
Representing the Marianas Visitors Authority, Managing Director Christopher A. Concepcion, managing director of the Marianas Visitors Authority; agreed that the expo appeared to be significantly busier than in recent years, with Japan-based agencies showing interest in opportunities in Saipan, Tinian and Rota.
“We are getting a good B-to-B response, and although the outbound market for Japan has been soft, we are beginning to see things pick up,” he said.
MVA in September signed up with Japanese marketing giant Dentsu in September to raise the NMI’s profile, promote the destination and attract a new generation of visitors at the same time as appealing to jogging the memories of people who have visited previously.
“This is a major investment and shows our commitment to the market,” Concepcion said. “We are spending more here than anywhere else and that underlines our dedication to the market and our historic ties to Japan.”
Ultimately, he said, the intention is to get the NMI back to where it was in the peak inbound years of the late 1980s and 1990s, with a high of 450,000 Japanese arriving in the peak year of 1997. In contrast, just 12,000 arrived last year.
“I’m optimistic because we know that the Japanese feel at home when they visit, we pride ourselves on our hospitality and the relaxed pace of life,” he said. “I’m very confident that anyone who has never visited will love it and those who have been before will want to come back again.”
Organizers of Tourism Expo Japan said they are anticipating more than 180,000 visitors, up from 148,000 at last year’s event and a paltry 24,174 people at the 2020 expo, held in Okinawa at the peak of the pandemic.
GVB member companies taking part included the Baldyga Group, Royal Orchid Guam, The Tsubaki Tower, Hilton Guam Resort & Spa, Hotel Nikko Guam, Pacific Islands Club Guam, the RIHGA Royal Laguna Guam, Arluis Wedding, Guam Premier Outlets, Crowne Plaza Resort Guam, Guam Plaza Resort, Dusit Thani Guam Resort, Dusit Beach, Dusit Place, Lotte Hotel Guam and Skydive Guam.
GVB also used the occasion to host a signing ceremony with Japanese travel giant H.I.S. Co. Ltd. to launch the Wellness Island Project and promote the island as a wellness and fitness destination and aims to attract an additional 50,000 travelers to Guam in 2025. mbj
Guam and NMI market islands hopefully for the future
Guam and NMI market islands hopefully for the future
- Date Posted: Oct 02, 2024
- News: Guam, Japan, Northern Mariana Islands