Tourism and Investment in Japan

Kawasaki Heavy Industries Ltd. is a comprehensive engineering company that engages in various businesses whose products and services involve ships, railway vehicles, aircraft, motorcycles, gas turbines, and robots.  In particular, it is one of Japan's leading aircraft manufacturers and has its main aerospace production base in the chubu region.  For example, the company assembles parts for Boeing’s large-sized passenger aircraft at plants in Nagoya.  It also has been engaged in the research, development, manufacturing and repair of fixed-wing and rotary-wing aircraft, and space equipment for public and private demand at Gifu plant since its opening in 1923.  The Gifu plant is adjacent to the JASDF Gifu Base and has been manufacturing various aircrafts ordered by the Ministry of Defense.  It has also played an important role in the development of the H-IIA and H-IIB rockets. Kawasaki Heavy Industries newly installed a ground station antenna for satellite operation to re

According to the Indexes of Business Conditions released by the Cabinet Office on January 10, the coincident index, which indicates the current state of the economy, was 95.1 for November 2019, down 0.2 points from previous month. After the consumption tax hike in the last October, the index fell for two consecutive months, falling to the lowest level since February 2013.  Stagnating corporate production caused the index to decline being consistent with the current state of the economy.  The assessment of coincident index was “the economy was worsening" for four consecutive months in a row, indicating a high possibility of a recession.  It is pointed out as the backdrop that the production and shipment of machinery such as shovel cars have been sluggish due to a delay in the procurement of parts after having been hit by the large typhoon last fall.  Regarding the employment, the effective job offer rate has recently leveled off. Until now, the Japanese government has

The Bank of Japan cut its economic assessment for three regions out of nine nationwide in its regional economic report (Sakura Report) released on January 15. Tokai and Hokuriku regions in the Chubu were included in the downgraded three.  Manufacturing activities have stagnated significantly due to the effects of the global economic slowdown caused by US-China trade friction and severe typhoon damages.  On the other hand, the bank has analyzed that overall economy is expanding moderately in spite of the slowdown effect from overseas economies and natural disasters.  As for the future outlook on domestic demand, the bank also expects it will continue to expand moderately limiting the influence of slowing overseas economies.  The bank expects that consumers’ spending will hold up the impact brought by the recent consumption tax hike and its influence will not linger with tail wind of improving employment and income. However, business people are worried that consumers are

The Bank of Japan has conducted a survey of more than 2,000 people asking how they felt the economic conditions and their spending.  According to the survey result released on January 9, about 33% of respondents said they had refrained from spending after the consumption tax hike in October last year, and the counter reaction brought by the last - minute demand and the inclination to savings were seen after the tax hike to some extent.  Asked in multiple answers about what kind of products and services they reduced spending on, the most respondents answered “eating out” at 57.8%, followed by "clothing and footwear" at 51.5%, and "daily goods" such as detergents and general merchandises at 41.6%.  When asked how long the negative effect will continue, 74% of respondents said that it will continue after the spring.  The impact of fading last - minute demand and the tendency to save money will be expected to continue for the time being.  Although the gov

According to the statistics announced by the Japan National Tourism Organization, the number of foreign visitors to Japan in the first half of 2019 has recorded the highest ever exceeding 16,633,000, an increase of 4.6% over the same period last year.  However, the number of foreign visitors in November 2019 decreased by 0.4% year-on-year to 2,441,000. The tourists from Korea fell by 65.1% from the same month last year causing entire figures to decline.  On the other hand, the number of tourists from 19 countries including China, Taiwan, Hongkong, Thailand, Singapore has grown by 19.9% year-on-year, recording highest ever. In particular, visitors from China increased by 134,000 from the same month of the previous year.  Visitors from southeast Asian countries also recorded double-digit gain year-on-year supporting steady expansion of entire foreign tourists’ figures.  Under such economic conditions, Greens Co., Ltd., which is headquartered in Mie prefecture and operates hotel

Resorttrust Inc., headquartered in Nagoya, operates membership hotels. The company is known to be one of the pioneers of Japanese membership hotel industry.  With facilities nationwide, Resorttrust has the highest sales of membership resort hotels in Japan. In addition, it also engaged in medical businesses such as medical examinations for members and advanced cancer treatments that are not provided in general medical facilities.  It also operates membership golf courses at 13 locations nationwide. These golf courses are known for “Resort Trust Ladies”, one of the major annual women's professional tournaments held in Japan.  Recently, its sales have been increasing steadily. Behind this is the growing wealthy individuals in Japan who have financial assets of more than 100 million yen. The number of wealthy people in 2017 is estimated to be about 1.27 million.  These affluent used to own villas, but those villas are recently being replaced by membership facilities. Another

According to the Japanese government's draft budget for fiscal 2020, determined at the end of last year, the amount of government debt issuance will reach a record high.  The total expenditure was 102.7 trillion yen, also a record high, exceeding 100 trillion yen for the second consecutive year.  Although tax revenues are expected to increase due to the consumption tax hike implemented last October, the government has to continue increasing bond issuance because expenditures exceed revenues next year again, highlighting difficulties of the fiscal reform Japan must face for long time future.  The total public debt was announced to be 1,103.4 trillion yen as of the end of March 2019, also the largest ever.  This is about 200% of Japan’s GDP and controlling expenditures is an imminent issue for the Japanese government.  Despite its overwhelming debt and huge budget deficit, Japan maintains low interest rates and low inflation for years which has been a conundrum to investor

In Japan, from midnight on New Year’s Eve to New Year's Day, shrines and temples around the country are crowded with a large number of people visiting for Hatsumode, the New Year's visit to shrines and temples.  For example, it is said that more than 3 million people visit Meiji Jingu Shrine in Tokyo during three days from New Year’s Day every year.  In the Chubu region, Atsuta Jingu, Toyokawa Inari and Ise Jingu are also famous for attracting many visitors.  In particular, more people seem to have visited Ise Jingu Shrine this year, which is closely related to the Imperial family, as this was the first New Year's Day since “Reiwa”, the new era has started.  During the New Year season, Fukubukuro, a kind of Lucky bag, is specially sold at department stores and shopping malls only for this period.  This year too, those retail stores were crowded with many shoppers hunting for Fukubukuro on New Year's Day.  On the other hand, work style reform is