Japan

In 2008, travel from Japan to mainland U.S. was down 8%, and travel to California was down 7% (629,000), which resulted in a California market share of 19.4%. In April 2008, Japan began to implement the first in a series of brand advertising campaigns—Nandemo Ali-fornia (California Has it All)—to refresh and expand the California brand among primary target audiences. Although travel from Japan to mainland U.S. was down 8% in 2008, and Hawaii was down 9%, California saw a smaller decrease of 6.8%, despite the global economic turmoil encountered in the last quarter of the year.

The Japan outbound travel market represents 13.54% of the population, corresponding to an estimated 17.3 million travelers. CTTC’s challenge continues to be securing growing market share in a relatively flat outbound travel market, projected to see only moderate growth during the coming years. Also, more than 70% of all outbound travel is made up of packages, primarily composed of air and hotel components, resulting in the diminishing influence travel trade has on driving visitation to a destination. In order to grow California visitation and market share, it has become necessary to implement consumer-direct brand advertising strategies and tactics. The consumer-direct brand advertising strategies and tactics will continue to focus on experiential theme products (wine & food, LOHAS & spa, theme parks, national parks & world heritage sites, fly & drive, shopping, entertainment & nightlife, art & culture, sports & recreation, and luxury) integrated throughout all marketing channels.

With such a complex and competitive media landscape, CTTC has focused on key target markets to hone messaging and make the best use of available funds. The Tokyo metropolitan market represents over 33% of outbound travel. Consumer market research conducted in September 2007 identified the following three core target audiences that tested most responsive to California product, messaging and creative: Office Ladies F1 (ages 20-30, first-time visitors); Office Ladies F2 (ages 30-35, repeat visitors); and Baby Boomers (ages 50-65, 25% of population will be above 60 by 2014).

Key Strategies

• Given the expected rebound of Japan’s outbound market in 2010, ensure that California remains a top-of–mind long-haul destination for potential Japanese travelers.
   
• Continue with “Nandeomo Ali-fornia” campaign to showcase not only the major gateways, but also attractions outside them.
   
• Focus more on market programs to convert “travel interest” to “travel purchase.”
  
• Expand sophisticated online tools to market California.
  
• Develop expanded marketing programs to stimulate demand outside of Tokyo Metropolitan area.
  
• Leverage the “Japan-California Tourism Council” established by the Japan Association of Travel Agents (JATA) to influence Baby Boomer visitation.