TOKYO —
What will 23,980 yen buy you? That’s what a round-trip flight between Shanghai and Ibaraki costs aboard the China-based LCC (low cost carrier) Spring Airlines, including the fuel surcharge. On the same day, travelers could obtain tickets for a China Eastern Airlines (Dongfang) flight between Shanghai and Narita for 39,400 yen. That price reflects a 40% reduction by making the purchase online.
Shukan Diamond (July 7) reports that Spring Airlines has achieved an average passenger load factor of 95%. Between 70 to 80% of the passengers are Chinese.
The economic boost from visitors aboard such flights, however, is open to question. Baggage allowance is only free up to the first 15 kilograms, and every kilogram beyond 15 results in an additional charge of 1,500 yen. As opposed to flights to Shanghai aboard ordinary carriers departing from Narita—where it is not uncommon to see departing Chinese travelers checking in two or three rice cookers and other bulky souvenirs—it is rare, the magazine reports, to see passengers at Ibaraki checking in so much baggage.
This also calls to question whether the inbound passengers who travel here aboard LCCs can be expected to make much of an impact on Japan’s economy.
“Actually, a lot of Spring Airlines’ passengers are Chinese who reside in Japan or those using it for business trips,” a source in the airline industry tells the magazine. One Chinese passenger mentioned he utilized the carrier to hold down travel costs, adding that driving to Ibaraki from his home in Yokohama costs about the same as Narita, and the airport parking charges at Ibaraki were negligible.
Another reason for skepticism that LCCs will impact positively on the economy is that many of their passengers are first-timers who will not contribute much to local economies. Most of the passengers disembarking at Ibaraki Airport were seen boarding chartered buses, which transported them to Tokyo at the cost of 500 yen per head.
Most of the gifts being carried back home, moreover, were souvenirs from Tokyo or national brand items such as Hello Kitty goods from Sanrio. Ibaraki souvenirs such as sembei (rice crackers) or soba (buckwheat noodles) enjoyed limited demand, but most traveler expenditures clearly went elsewhere.
“People back in China want things bearing images of Mt Fuji or items with the Tokyo logo, and Ibaraki doesn’t have much name recognition,” sighed an airport worker.
Japan’s major domestic travel agencies appear to show little enthusiasm for inbound visitors, who account for only about 1% of the 6 trillion yen in annual revenues from travel. “Even if foreign travelers increase, unless they help boost revenues, we’re not really interested in handling them,” was how a source at one agency put it.
Part of this unenthusiastic attitude toward budget visitors may lie in the entrenched view of “Yasukaro, warukaro” (low price means low quality). The visitors aboard LCCs, it is feared, may aggravate the already competitive situation.
Next year will mark the 10th anniversary since the cabinet under former Prime Minister Junichiro Koizumi announced an annual target of 10 million foreign visitors to Japan. The figure reached 8.6 million in 2010 before plummeting due to last year’s earthquake, tsunami and nuclear plant meltdown. While this year shows encouraging signs of recovery, visitors as of May were still lagging 7.3% behind 2010.
“LCCs are making it cheaper for domestic travelers to get to Sapporo and other regional destinations,” remarks Obirin University Prof Masaru Suzuki, an authority on tourism. “It also presents the industry with a chance to propose new types of travel, such as for foreigners to fly here aboard LCCs and then return home inexpensively aboard ferries, that permit them to carry back lots of purchases.”
The ultimate question is, can the industry generate these kinds of new ideas—to harness LCCs in ways that will stimulate growth in the travel business?
13 Comments
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Akula at Jul. 10, 2012 - 08:50AM JST
More myopia from the Japanese press. These tourists may spend less money, but they are still putting money into the Japanese economy.
Virtuoso at Jul. 10, 2012 - 09:07AM JST
NHK news ran a survey last night showing 65% of the Japanese travel agencies responding said it simply wasn't worth their while to handle inbound visitors from China. The intense competition for group tours to Japan from China leave an operating budget of something like 10,000 yen for four days of hotel, meals, sightseeing and transportation. This appears to be one reason why Japan has changed its visa regulations so that Chinese who can prove they have high income can be issued multiple entry visas and visit as individual travelers.
Pukey2 at Jul. 10, 2012 - 09:37AM JST
Would they prefer that NOBODY came, then? Because that's the alternative, and they'll be earning zero yen in that case.
Wakarimasen at Jul. 10, 2012 - 11:26AM JST
Yes it is money (even if not a lot) but Chinese tourists are just cheap and rude and not worth it.
GW at Jul. 10, 2012 - 12:30PM JST
Boy this is a pretty sad read!
Why on earth wud Ibaraki expect to reap any huge rewards for its STUPID airport, its only a place to land & take off from, then you go elsewhere, very unlikely to change
Am I the only one getting sick & friggin tired of reading about who Japan is milking & who they aint............by all means try to attack customers to you business etc but the blurbs in ALL media just going on about how to part tourists from their $$$$$$ is looking INCREDIBLY SHALLOW!
tmarie at Jul. 10, 2012 - 10:59PM JST
Would they prefer that NOBODY came, then?
I think the answer to that is yes.
Sour grapes. They're pissed off their airlines are bombing so releasing negative articles. I love LCC because I don't need the "bonuses" of crappy food and newspapers at the extra cost. Long live Asia Air!
Pukey2 at Jul. 11, 2012 - 12:02AM JST
I live half way between downtown Tokyo and this airport in the middle of nowhere. And it sure as hell is going to cost me a lot more than 500 yen to get there. This is great for customers in Tokyo, but in general, getting to any Japanese airport can mean getting ripped off.
wakarimasen:
I understand why you chose that handle. 'Some' Chinese tourists may be cheapskates, and yes, a lot can be, what we think is, rude, but to say that the Chinese as a whole are cheap is plain absurd. You simply have NO idea how loaded many of these mainland Chinese tourists are. Even Hong Kongers are finding it intimidating the way they throw their money (read, cash) about. A friend from Singapore came to Japan for business, and she attended meetings with people from the Shanghai branch. While us two were looking for cameras at Yodobashi, her Chinese colleagues were only interested in brand goods like Gucci and what not. You have NO idea.
If the Ibarakians, want more money, they should open up a Gucci store. Growing onions and potatoes ain't gonna help.
JeffLee at Jul. 11, 2012 - 06:19AM JST
Most of the passengers ...were seen boarding chartered buses, which transported them to Tokyo at the cost of 500 yen per head.
How dare foreigners pay reasonable prices! The message is clear: only those willing to be ripped off are welcome in Japan. Keep up that attitude, Japan, and Asian tourists will switch to somewhere more welcoming like Thailand...and you'll be left with zip.
tmarie at Jul. 11, 2012 - 06:31AM JST
It's it funny that stores are now highering Chinese speakers to help with shoppers? Just a few weeks ago their was a program on about Chinese tourist and the money they bring in. Funny how this article states otherwise.
To be honest, not sure why Chinese tourist want to come here. Temples and the like are the same, pretty much same culture and china also gas hit springs, amazing sights and great Japanese food. If it is for shopping I'd suggest HK or Singapore.
LostinNagoya at Jul. 11, 2012 - 07:32AM JST
What I understood is: if you're a backpacker, go somewhere else. Japan does not want you. Come only if you can afford 1st Class or Business. No wonder Japan tourism is next to zero.
Scrote at Jul. 11, 2012 - 03:38PM JST
Y23980 for a return flight from from Shanghai to Ibaraki is great. I pay about Y25000 for a return train trip from Sendai to Narita. I wish the cheap airlines would come to Sendai.
I thought the purpose of that Ibaraki airport was to serve as a base for cheap airlines for people who want to visit Tokyo but don't want to be ripped off by Haneda and Narita. It was never meant to bring tourists to Ibaraki, so why people there are moaning about it now is a mystery.
gaijinfo at Jul. 14, 2012 - 11:53AM JST
You know, it is possible to export your products to other countries using other means. You don't need foreigners to come here, buy them, and then take them home.
And when foreigners do come here, they spend money in hotels, restaurants, etc (presuming said restaurants and hotels actually welcome foreigners.)
Sheesh.
thywillbedone at Jul. 14, 2012 - 09:01PM JST
Amen to all those who commented about the sour-grapes attitude. It's good they're coming. They're more likely to come again if they have a positive experience, and recommend it to their associates.